2nd mortgage foreclosure question

[confusedandscared]

That was my oringinal attorney that is in the modification business, that informed me that a second mortgage could not be stripped in a chapter 13. The second mortgage company has offered to drop the payments to 366.00 instead of 891.00 keeping the loan of 92000.00 at 10% for 30 years. This doesnt make sense to me. How would the loan ever be paid off under these terms? If we were to default the payments would return to 891.00 a month. I dont know if we should accept this offer or hold out, threatening to file bankruptcy.

[Modification Specialist]

Originally Posted by confusedandscared

That was my original attorney that is in the modification business, that informed me that a second mortgage could not be stripped in a chapter 13. The second mortgage company has offered to drop the payments to 366.00 instead of 891.00 keeping the loan of 92000.00 at 10% for 30 years. This doesn't make sense to me. How would the loan ever be paid off under these terms? If we were to default the payments would return to 891.00 a month. I dont know if we should accept this offer or hold out, threatening to file bankruptcy.

Hum? imagine the chances of being your original attorney. I am interested about him, there is a lot of publicly about him. Now he has worked for you, how was he????

The modifications I'm seeing here on the east coast, plusd have friend at another attorney firm that does modifications. The vast majority of second mortgages we are seeing completed, the settlement was the principle was lowered. Negotiated to a "sick" lower amount.

Dropping the payment doe to $366, results in the interest rate reduced down to 2.55%. The payment of $891 per month, reflects an interest rate of 11.21%.

I am not positive - I think mentioning the possibility of bankruptcy to your 2nd lender, coming from an attorney. There is no jacking around that the borrower will have another chance to default on the loan.

The difference between a first and second mortgage, is that the 1st is secure. The 2nd - that lender does not have much to bargain with, because subject to a bankruptcy or foreclosure, they wont get anything.

Just getting an interest rate lowered on the 2nd mortgage only, in my opinion shows an in experience negotiator.

(Being a member of this forum, I can not solicit you, or am I licensed in California).

G.L.


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[confusedandscared]

The lender on the second has not dropped the interest rate and has dropped the monthly payment but not the principle either, thats why I dont trust the offer it doesnt make any sense. I cant afford to hire another attorney, so I have no choice but to keep trying to negotiate with the second even though it has been going on for three years.