80/20 Mortgage; Settlement on 20% if I Stop Paying?
Date: Mon, 02/22/2010 - 15:14
80% no problem 2nd not going to happened. The bank refused to do loan modification or refinance because home is under water.
Does anyone know if I stop paying the 2nd if they will offer a settlement?
I could get the cash from my 401K if they would settle at 35%.
Right now they are letting me pay interest only on the 20% so the bank knows I'm in trouble.
Trying to sell at a short sale but can't even get a low offer from anyone :(
per bankrate dot com: 2. Settle with the lender holding the li
per bankrate dot com:
2. Settle with the lender holding the line of credit
Recently, quite a few clients have told me that the second mortgage lender has given them a one-time, lump-sum settlement offer. This means the HELOC lender understands there is no equity in the property and that, [URL="http://www.debtconsolidationcare.com/finance/mortgages/bank-foreclosing-try-one-of-these-options-1.aspx"]if it foreclosed[/URL], that lender would get paid nothing.
This could be a viable option. Even so, you likely will find it difficult to pay the settlement in one payment. You could borrow money from friends or family, but that's risky because it could end your relationship if you fail to pay the money back. Or, you could take the money from a retirement account. If you take this option, you could have tax consequences from the early withdraw.
Yeah, refinancing isn't an option for you. But I don't see a rea
Yeah, refinancing isn't an option for you. But I don't see a reason why the lender wouldn't allow you to modify the loan. IMO you may discuss the matter once more with the lender. Also you can offer a 35% settlement to them. However, it would completely be the lender's discretion whether or not to accept the offer.
Anyway, if saving the property isn't your concern then you can also check the alternative of deed in lieu.
