Second lien modification

[morainac]

Hello, I have home equity loan with chase. Do anyone know if they are modifying or extinguishing seconds?

[snapple candy]

Well, mine is with WAMU now Chase so I am assuming the Chase side will handle the same way. I was directed to fax in the same paperwork as with first changing the primary loan number to the 2nd. I was told to fax into loss mitigation. Call the number on your bill for customer service and ask where to fax it.
Some lenders are taking 10 cents on the dollar if you have the cash to buy out. Depends on how underwater I imagine, as well as how 1st mod goes.

[morainac]

Hello, has anyone else receive a second lien modification?

[snapple candy]

I have been contacted this past week by Chase on my 2nd. I had to refax my documents. Rep sounded OK. We'll see. I'll keep you updated.

[snap1]

My 2nd is with Navy Federal Credit Union and they offered to modify it for me, without me requesting them to do so. I did accept their offer. The modification reduced my interest rate and resulted in reducing my payment by $400 per month. Good luck.

[snapple candy]

I just talked to Chase yesterday. They have immediately reduced my payment by 50%. Although it wasnt all that big in the first place....30K at $124 mth, it now went to $45 a month.I am on MHA trial modification and they are going to mimic the trial mod for first lien plan. Once that becomes permanent, they will match the same terms as the first.
I am not hearing much about extinguishing the 2nd. Although, I appreciate the reduction, in the end of the trial unless something is extinguised or a principal reduction (aint gonna happen) that it still will not change the fact that I am underwater 100K not including the 75K I put down on it 3 years ago. The broker was here yesterday doing a BPO for this 2nd lien modification, and told me it will be at least 10 years before I reach the break even point (not including my down payment).
He told me they are seeing 75 foreclosures a week in our county, when they were seeing 5 a month 1 year ago. We dont have a high population either. In my town (largest in the county) we have population of 75K. This place was in the middle of a building frenzy and now lots of new homes are sitting empty, builders walking away...even a few committed suicide.
It simply makes no financial sense, even with a modification to hold on to my home. Once my teens leave home in 3-5 years, I planned to downsize anyway. If I try and sell then, I still will be underwater. There is no employment here (20%) and I am looking at possibly leaving in about a year to find better job opportunites, this also will not change for years to come. I think it really comes down to certain variable factors whether to accept modification package. I know many out there trying desperately to get one. In many cases, you really have to do some serious evaluation and ask yourself, is it really in your or your families best interest (all factors considered) to even accept one? A year ago, I would have jumped at the chance of getting this deal to keep my home. This is a long term decision, not a short term "emotionally" based one. I am seeing the writing on the wall, and I dont like it.

[snapple candy]

I just talked with my real estate attorney and discussed my options in the event I want to walk away from my house regarding the 2nd with Chase. He says the best case scenario he has negotiated is 20% of the total debt of 2nd. Ie: me 30K 2nd for 6K. I also discussed a deed in lieu in exchange for just walking away. I have heard of others negotiating on their own 10%.

[determined1]

I have yet to seek legal counsel thought it is on my "things to do" list. For me, I've applied for a mod which they said was on hold until they hear back on the 1st. My hardship letter included a request to settle, which they haven't responded to. I don't have any assets, but could liquidate my 401K if they were willing to settle. I don't have enough unsecured debt outside of this darn HELOC (I don't think) to want to go the bankruptcy route--unless I'm forced to.

Realizing that every situation differs, what kind of options were you given?

[kdtran08]

Originally Posted by snapple candy

I just talked to Chase yesterday. They have immediately reduced my payment by 50%. Although it wasnt all that big in the first place....30K at $124 mth, it now went to $45 a month.I am on MHA trial modification and they are going to mimic the trial mod for first lien plan. Once that becomes permanent, they will match the same terms as the first.
I am not hearing much about extinguishing the 2nd. Although, I appreciate the reduction, in the end of the trial unless something is extinguised or a principal reduction (aint gonna happen) that it still will not change the fact that I am underwater 100K not including the 75K I put down on it 3 years ago. The broker was here yesterday doing a BPO for this 2nd lien modification, and told me it will be at least 10 years before I reach the break even point (not including my down payment).
He told me they are seeing 75 foreclosures a week in our county, when they were seeing 5 a month 1 year ago. We dont have a high population either. In my town (largest in the county) we have population of 75K. This place was in the middle of a building frenzy and now lots of new homes are sitting empty, builders walking away...even a few committed suicide.
It simply makes no financial sense, even with a modification to hold on to my home. Once my teens leave home in 3-5 years, I planned to downsize anyway. If I try and sell then, I still will be underwater. There is no employment here (20%) and I am looking at possibly leaving in about a year to find better job opportunites, this also will not change for years to come. I think it really comes down to certain variable factors whether to accept modification package. I know many out there trying desperately to get one. In many cases, you really have to do some serious evaluation and ask yourself, is it really in your or your families best interest (all factors considered) to even accept one? A year ago, I would have jumped at the chance of getting this deal to keep my home. This is a long term decision, not a short term "emotionally" based one. I am seeing the writing on the wall, and I dont like it.

I am going through a trial program for my 1st and called Bank of America regarding my second. I thought they would match it to be the same with my first since they are both Bank of America (as stated in Obama plan) but they said I would have to apply separately. Is that true?

[snapple candy]

kd,
Yes you have to apply separately. It is a different department that handles 2nd liens/equity lines. It is much like a line of credit. I know with Chase, I send the exact same application and documentation for the MHA program to Loss Mitigation. I was just instructed to only change the account numbers on it. I would call the customer service number on your statement and inquire from their how to apply. I just asked for a fax number to fax it to, and then called weekly to inquire as to the status. Surprisingly it didnt take long...unlike the almost 1 year to get the 1st handled.