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Exploring Options - Colorado

Date: Tue, 10/02/2012 01:54

My husband was deeply in debt prior to us getting married, and took out a 2nd mortgage on the home we own. We are both on the 1st mortgage, and that is current after a hellish loan modification process with WF. 2nd originated with Countrywide and was sold to BoA and now is being sold again, hubby is the sole borrower on it. We tried to get BoA to modify the 2nd, but they refused. Waiting on the info for who ever BoA sold the 2nd to, but in case they also refuse to work with us, I'm exploring other options. The house is deeply underwater, between 1st and 2nd we owe about 200k more than the house is worth. We tried refinancing, but have been unable to based on the value of the home and the hit to our credit we took during the loan modification process with the 1st.
Question is this, since hubby is the sole borrower on the 2nd mortgage and his credit is already trashed, should we consider having him file for BK so we can possibly strip the 2nd off our home? We would prefer to do a modification or possibly a settlement, but like the title to the post says, just exploring our options.

Thanks,
Lost

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Total Replies: 4

Lien stripping through BK13 seems like an option as far as getting rid of the second mortgage is concerned.

Sub: #1 posted on Tue, 10/02/2012 - 02:33

Steve Barris

(Posts: 1045 | Credits: )

Before considering bk you want to determine if your 2nd is eligible for full forgiveness under the DOJ settlement. Colorado is a signer to the consent judgment. If the loan was originated with Countrywide then became B of A (and may now be with Green Tree), there is a strong possibility that it qualifies under the April, 2012 settlement.

You can contact your State Attorney General's office for more info, look on B of A's web site or try the below link for info on this. . .

http://www.justice.gov/ust/eo/public_affairs/consumer_in fo/nms/docs/nms_faqs.pdf

Des.

Sub: #2 posted on Tue, 10/02/2012 - 05:05

despritfreya

(Posts: 175 | Credits: )

Looks like the 2nd was sold to Select Portfolio Services. Got the unpleasant call from them on Saturday. When I asked about the DOJ settlement the guy basically laughed at me and said it could be years before a determination of eligibility was made and in the meantime what was I planning to do about the past due balance? Now I'm going to find a lawyer and get to the bottom of this.

Sub: #3 posted on Mon, 10/15/2012 - 01:47

Unregistered

Quote:

Looks like the 2nd was sold to Select Portfolio Services.

SPS does not own your loan. It is only the servicer. Nine out of ten people you talk to at SPS will be idiots. You need to find out who the investor is. Again, it may qualify under the DOJ settlement. Before spending $$ on a lawyer, contact your State Attny General's office.

Des.

Sub: #4 posted on Mon, 10/15/2012 - 05:28

despritfreya

(Posts: 175 | Credits: )