BOA completely refuses modification, Litton offers a pittance

[Steel]

My situation is a little complicated, I was hoping someone could help.

Right now, I am in Chapter 7 bankruptcy, and my mortgages along with insurance and taxes make up about 43% of my net income. BOA holds the first mortgage, and Litton the second. I approached BOA for help, and their Melissa Henderson at the OOP flatly and very rudely refused to do anything to lower my payents. Litton offered only a 35.00 per month reduction on my payments. The interest rate on he BOA loan is 9% and Litton is almost 12%.

My attorney has advised me not to reaffim the Litton loan, but I am not sure I am entirely comfortable with that as from what I have read I would be constantly living under the threat of a forclosure even if I'm current on the payments. I'd really have no problem reaffirming the Litton Loan if they dropped the interest rate, payment, principal,whatever so the payment would be more manageable. As for BOA, I am really at a loss for what to do. The Making Home Affordable plan really seems like a joke in that it does not even address second mortgages, it treats them as if they do not even exist. I can say the sun doen't exist, that doesn't mean it isn't there. What logic is behind that is beyond me.

Can anyone help? The trustee could well disallow a reaffirmation of the BOA loan. Is there anything a bankruptcy judge or trustee can do? Or a lawyer why may work on a sliding scale? I am broke!

[CW California]

Steel
What state are you in and could you give a little more information as to loan balances and property values etc? I'm sure someone will be along soon that can you a little more information.

[Steel]

I am in Independence, Missouri, ZIP 64050. The balance on my first with BOA is around 89k; my second with Litton is around 20k. Now, a year or so ago, before I filed bankruptcy, I checked online to see what the estimated value of my home was,and it was pretty close to the sum of those balances. However, I checked just a couple weeks ago at three or four such sites; they seem to indicate that my propety value seems to be holding, although homegain.com says $59,171 - $69,462, so estimates vary widely.

[CW California]

Steel
Two things you might want to look into. 1)Check out NACA.com. They are a hud approved agency that has had better luck negotiating with BofA than individuals have had. Click on the Homesave menu. They have a ten step process. Seems a little daunting at first but you can complete it and BofA has signed a contract with NACA to work with them. They base their solutions on income and in some cases have gotten as low as 2% for the life of the loan. If NACA can't get BofA to agree to their solution they request BofA to submit it to the investor. (Do you know who the investor on your loan is?) NACA will only work on your 1st mortgage. Your bankruptcy attorney would know the best course of action on your second or 2) You may want to post this question in the DIL section as Professor Shay visits their and he may have some further insight on the bankruptcy versus your 2nd mortgage.

I grew up in St. Louis/ St. Charles so I can understand how the home estimates can vary in a smaller town.

Good Luck.