2nd mortgage dilemma

[crystald1156]

Ok so. our BK was discharged in August. We carried thru our 1st and 2nd mortgage. The 2nd mortgage company sent a letter saying to avoid foreclosure we needed to contact them and that this was not an attempt to collect a debt. HAHA I know. Anyways called them and they are wanting us to either modify, or they will make a settlement offer. I have gotten a weird vibe from this and will be calling my lawyer asap, but this is what the lawyer told us when we carried it thru- because our home is upside down to the tune of $30000 to carry it all thru because we really did love our home and built it where we did for the schools. He told us that because more is owed on the home than it is worth, the 2nd mortgage more than likely wouldnt really play a part. Folks we only owe $10000 on the 2nd mortgage. He told us that in 2-3 years we should try and get our home refinanced once the economy came back up and that way it would start reporting back to the credit bureau. Waiting that period of time would also allow us to try and get our credit scores back to civilization. I am just wondering if the 2nd mortgage company is trying to find a way to get us to reaffirm the debt or something. I am tempted to just take the settlement offer and be done with them, but I am not doing anything without talking to our lawyer. Let me know your thoughts on this.

[NoMoreCards]

A debt that has been discharged, can not be reaffirmed months later.

[justbroke]

My thoughts have more questions than answers. When you say "carried through", do you mean that you signed and entered into a Reaffirmation Agreement? As I read your post, it reads as though you didn't since the creditor (bank) stated that they were not trying to collect a debt. I think you meant to say that you did a "ride through" while discharging the debt, but continuing to pay. In that case, you owe them nothing but they can proceed with foreclosure. If you so choose to a settlement and you only owe $10,000 on the second (including penalties, interest, fees) then you may want to settle for 10% or so.

As already stated, there is no way they can make you reaffirm after the fact. What they appear to be doing is somehow pressuring you by threatening foreclosure... which is their option if you are not paying. You didn't mention whether you were paying the 2nd mortgage on-time and are current since filing bankruptcy. If you are not current, then it is the 2nd's right to foreclose.

Certainly speak with your attorney. Perhaps your attorney can help (for a very small fee!) get some sort of settlement that is 10% or so. You would want an attorney to make sure your rights are preserved and that they'll issue a release of mortgage should you take the settlement.

[clunk]

I'm interested in how this pans out for you. We too have opted for the stay and pay option. Our first is with chase that puts us about $30k upside down. Our second is a heloc, with boa to the tune of $35k. My plan (whether its feasible or not, remains tbd) was to get our discharge. Then attempt to negotiate and pay(hoping less than 10%), of the second. And then maybe i will be able to negotiate with chase, maybe I'm overly optimistic but that's my direction until I'm convinced otherwise......