2nd mortgage confusion post BK Greentree

[amyjrn]

Where to start.....

Bought a house in 2003 and did an 80/20 split. Filed for ch 13 in 2005 and was completed in April 2010.

1st mortgage has been transferred to a different company and is current...no issues there.

2nd mortgage has been transferred 3 times and is currently with Greentree (as of 12/09).

Here is where it gets confusing. Went through a divorce last year (ie financial difficulties) and stopped paying on 2nd mortgage. (house is totally mine and he signed off on interest in house so I don't have to sell or refi)

When I came into some cash I called them to see if I could negotiate any late fees or anything and got quite a shock. Lady on the phone said that because of my bankruptcy my 2nd mortgage now was at 0% interest, no late fees, no minimum payment and I should just pay when I could and offered to settle for 70% of what was owed. I really didn't understand what was happening with the debt after discharge. I thought everything went back to the way it was before the BK. I have since done some research (which brought me here) and I have some questions....

On my credit report this debt only appears on 1 report and states "included in bankrupcy" and "discharged." I checked with the county clerks office and green tree is no where on there. The last thing it shows is a transfer to another company in 2005. I went back and looked at my bk papers and the debt was not stripped.

I don't have enough cash to settle right now. I plan on staying in the house at this time and am not sure what to expect. If greentree isn't listed with the county clerks office and I did want to sell...what happens there? I don't want to keep sending them monthly payments if at some point I am going to settle with them at sometime for significantly less that the full amount. I haven't made a payment in 6 months and haven't heard a peep from them. No letters. No calls. The lender that carries my 1st mortgage resumed sending monthly statements after my BK was completed as I expected.

Fortunately, I am not underwater with this house and believe I have about $10,000 or so equity. Would they notify me prior to starting foreclosure proceedings to work with me? Just very confused.

[newbie2]

Your 2nd mortgage holder can't ask for payments post discharge, but they still have a lien on the home. (Unless you see a release of lien or discharge of mortgage at the county recorders office, someone still has a lien on the property)

Since you have equity in the home, and it sounds like you want to keep your home, start saving money. When you have 10% or so of the balance owed them, call and talk to them about negotiating to release the lien.

[amyjrn]

How does one generally start the negotiation process? Do I call or just send them a certified letter with a lowball offer? I appreciate all the advice and info here. Thanks guys.

Also...my 1st mortgage was just recently transferred to SPS. My payments are current on the 1st and have been for over 5 years. I was wondering if anyone has had any success with getting their interest rate lowered. I have thought about calling and and saying "hey...lower my interest or I'm gonna refinance with someone else." Not sure how effective that would be.....just curious.

[IBroke]

Your 2nd mortgage holder can't ask for payments post discharge....

Are you sure this applies in this case as well? I thought mortgages wouldn't be discharged in CH13 BKs..

[RW3]

I'd like to see how this turns out for you with Green Tree my HELOC with them is completely unnderwater, and i'm 180 days past due. Trying to get a charge-off then settlement if possible.