Has anyone been able to modify a 2nd mortgage yet?

[the_good_life]

I would love to hear any success stories. Our first mortgage is for $127,000 and our HELOC is for about $75,000. Our house has been appraised by the township (according to our most recent tax bill) at $192,000. In 2004 it was appraised at about $240,000 (ouch).

My hours have been reduced at work for the second time and my husband has had periods of being laid off, as well as working reduced hours. At this point we don't know what the future holds for the company that employs him (Detroit area, subsidiary of the automakers) (ouch again).

We just sent in the first payment for the trial period of our modification on the first mortgage (CitiMortgage), and I contacted the home equity lender last Thursday, which is Bank of America. For the first time in years our equity payment is late. There's only so many ways we can stretch our incomes. I asked about a modification and spent 15 minutes going over our income and expenses. She told me they would contact me in two weeks.

Money is really tight right now. Any advice on what I should do about the HELOC? I would appreciate any input!

[jlynsmom]

I would like to hear success stories as well if they are out there. I have seen postings about settlement at 10% on a second, unfortunately, I do not have that type of cash reserve. I am in a similar position as you, only opposite (my first is held by boa and my second is citimortgage). I am waiting to hear back from citi on my modification request, but each status update is that they are waiting for the appraisal. I understand that they need an appraisal to determine whether they can recover their money without a modification, but given an almost identical house sold next door for more than $200,000 less than what I paid 2 1/2 years ago, I know they won't recover their principal unless I stay in the home and continue to pay. It's getting harder and harder each month and if they don't do something soon, I may just have to cut my losses and move on. I can rent in a much better area for less than what I'm paying on my first.

[goodlife4524]

Originally Posted by jlynsmom

I would like to hear success stories as well if they are out there. I have seen postings about settlement at 10% on a second, unfortunately, I do not have that type of cash reserve. I am in a similar position as you, only opposite (my first is held by boa and my second is citimortgage). I am waiting to hear back from citi on my modification request, but each status update is that they are waiting for the appraisal. I understand that they need an appraisal to determine whether they can recover their money without a modification, but given an almost identical house sold next door for more than $200,000 less than what I paid 2 1/2 years ago, I know they won't recover their principal unless I stay in the home and continue to pay. It's getting harder and harder each month and if they don't do something soon, I may just have to cut my losses and move on. I can rent in a much better area for less than what I'm paying on my first.

I'm in same boat. First mod through Making Home Affordable with Aurora Loan Services went through without a hitch. Citi doesn't appear to be participating in the 2nd Lien Modification Program, which calls for automatic mod on the 2nd to 1% for 5 years and then mirroring rate on 1st for life. They keep telling me they have a Making Home Affordable package that accounts for 1st & 2nd mortgages, but I don't qualify. Is it because I make too much or too little? I hear people saying you should make sure the system shows you have a small surplus every month. But they don't ask for tax withholding. I have nearly nothing taken out in taxes due to deductions. But isn't the point of getting a mod because you can't afford the old loan?

Anyways, their appraisal shows $250,000 with a first mortgage of $234,000 and the second of $56,000. It is non reaffirmed after a chapter 7 case, so they stand to get nearly nothing.