Trying to do a Hamp mod on 1st; being hassled by 2nd; Ch 7 bk
Date: Thu, 09/03/2009 - 14:36
Hello all. I reside in the State of California.
Due to being on maternity leave, I got behind on my mortgage payments on my 1st. I tried contacting the lender during my leave but they told me that I needed to wait until I returned to work before any work out could be attempted because my disability income was insufficient.
Unfortunately, by the time I went back to work and obtained my first full paycheck at the end of June, they had already filed a Notice of Default on June 26, 2009.
I have submitted all documents necessary in an effort to obtain a HAMP loan modification on my first mortgage which is held with HomEq Servicing.
They informed me that they have just assigned my loan to a representative who should be in touch in a few weeks or so (however, they did admit that they just started participating in this HAMP program and haven't finished one as of yet).
Anyway, I contacted my 2nd mortgage holder (Citifinancial) to see if they would work with me (I am now 90 days past due). I currently owe $260K on my first and $21K on the 2nd. The house is only worth around $100K if that.
I am considering filing for bankruptcy to alleviate all of the other old creditors who are now coming after me for credit card, payday loan debts, etc. that were charged off late last year. Plus, I owe $16K on my car and it's only worth about $9K.
I have read the various posts re: that I cannot lien strip the 2nd via a Chapter 7. However, my question is this:
IF I FILE CHAPTER 7, SINCE THERE IS NO EQUITY IN MY HOME, IS IT COMMON FOR 2ND MORTGAGES TO ACCEPT SETTLEMENT ON THE LOAN AFTER THE DEBT IS DISCHARGED?
When I spoke with Citifinancial today, the representative was so rude and started telling me that since I'm not paying my 1st right now that I would obviously have enough money to pay them so I should start. I informed him I wasn't going to until I heard from the first relative to my loan modification request.
I understand that they can still place the lien against my home even if it's discharged in the BK (assuming I am able to save the home in the first place).
I do not have the money to retain an attorney and if I file bankruptcy I intend to file it myself. I have spoken with a couple of attorneys who specialize in bankruptcy, however, none of them want to give me any confirmed answers or advice. They seem to want to get me into their office in order to convince me that I cannot do it myself and get a retainer fee.
Any advise what be much appreciated!
Due to being on maternity leave, I got behind on my mortgage payments on my 1st. I tried contacting the lender during my leave but they told me that I needed to wait until I returned to work before any work out could be attempted because my disability income was insufficient.
Unfortunately, by the time I went back to work and obtained my first full paycheck at the end of June, they had already filed a Notice of Default on June 26, 2009.
I have submitted all documents necessary in an effort to obtain a HAMP loan modification on my first mortgage which is held with HomEq Servicing.
They informed me that they have just assigned my loan to a representative who should be in touch in a few weeks or so (however, they did admit that they just started participating in this HAMP program and haven't finished one as of yet).
Anyway, I contacted my 2nd mortgage holder (Citifinancial) to see if they would work with me (I am now 90 days past due). I currently owe $260K on my first and $21K on the 2nd. The house is only worth around $100K if that.
I am considering filing for bankruptcy to alleviate all of the other old creditors who are now coming after me for credit card, payday loan debts, etc. that were charged off late last year. Plus, I owe $16K on my car and it's only worth about $9K.
I have read the various posts re: that I cannot lien strip the 2nd via a Chapter 7. However, my question is this:
IF I FILE CHAPTER 7, SINCE THERE IS NO EQUITY IN MY HOME, IS IT COMMON FOR 2ND MORTGAGES TO ACCEPT SETTLEMENT ON THE LOAN AFTER THE DEBT IS DISCHARGED?
When I spoke with Citifinancial today, the representative was so rude and started telling me that since I'm not paying my 1st right now that I would obviously have enough money to pay them so I should start. I informed him I wasn't going to until I heard from the first relative to my loan modification request.
I understand that they can still place the lien against my home even if it's discharged in the BK (assuming I am able to save the home in the first place).
I do not have the money to retain an attorney and if I file bankruptcy I intend to file it myself. I have spoken with a couple of attorneys who specialize in bankruptcy, however, none of them want to give me any confirmed answers or advice. They seem to want to get me into their office in order to convince me that I cannot do it myself and get a retainer fee.
Any advise what be much appreciated!
Well, I'm not an expert in this matter. Hence, reconfirm my info
Well, I'm not an expert in this matter. Hence, reconfirm my information before acting upon it. Hopefully the experts too would comment here.
Now, you can't get rid of the second mortgage even if you file for ch-7, rather the chances are there that the court may order to strip the second mortgage if you file under ch-13. However, it'd be the discretion of the court and doesn't take place too often.
"Deed in Lieu' can be an alternative to you as well. If the first lender agrees for 'deed in lieu' it won't come after you for the remaining amount of the loan. However, you may have to set up a repayment plan with the second lender.
Quote:none of them want to give me any confirmed answers or advi
Quote:
none of them want to give me any confirmed answers or advice |
I really would consider hiring an attorney for the BK, the different state exceptions, etc., can get quite complicated.
Have you tried to avail yourself of the government loan modification program?
