I am underwater on my mortgage and have been trying to get my lender to eliminate the second and modify the first but have had no success. I have a first that is a 6.9% Interest Only ARM with a $180,000 balance an a second wit same company that has a $18,000 balance. My home appraised at $230,000 2 years ago and now after many improvements appraised at only $175,000.
I have had to file Bankrupcy becuase I went blind and had to exhaust my 401 to keep from being behind on any payments. I took a chapter 7 and thought my mortgage was reaffirmed but now find out it was not.
Can I use it as leverage to get thelender to eliminate the second? I would reaffirm if they ould.