New, Confused, and Lost!

[hometrouble]

Hello all,

I was hoping i could get some advice on my situation. Any help at all will be most helpful. Thank you in advance.

My situation is as follows:

I bought a condo back in 2006. I got into some payment trouble and was able to get a friend to help me get on the Home affordability program last year which lowered by payments drastically. I was finally able to catch up on my payments and I am now current on both mortgages. (for the last 4months on both mortgages)

1st mortgage is $249k
2nd mortgage is $66k

My issue is, i am happy with my payment amounts and can afford to pay them right now with the home affordability program but i am still underwater and theres no way my place will go up 66k in value anytime soon. I have seen the same condo in my building sell for $210k-$245k in the past year.

After reading some posts here it seems some people have had success getting rid of their 2nd mortgage by not paying it and receiving a settlement.

My questions are:

1. If i stop paying for my 2nd mortgage, can they do a foreclosure on me?
2. is the correct way to do this is to stay current on my 1st mortgage and just stop paying for the 2nd mortgage and wait for a settlement offer?
3. I have seen someone very knowledgable called Tom Eason on the forum giving very good advice, Does he work for a credit help company? is there a way i can contact him for help, at this point I am willing to pay for some good advice.

If i could just find a way to get rid of this 2nd mortgage I will finally be in a good spot and can start rebuilding my credit without being scared of getting forclosed in the future.

Edit: I forgot to mention both loans are with Bank of America, but my 1st Mortgage is being sold to Ocwen Loan Servicing starting June 15th. BOA is keeping my 2nd mortgage with them.

[BustedBrokeBeaten]

You might want to provide the state you are in so the experts can give you the best advice. It sounds pretty straight up and simple to me that because your 2nd is completely underwater they won't foreclose. You might have seen the thread strategy for settling 2nds here on LoanSafe. Search for that site and read the 1st post. It's a completel outline given by Tom Eason. He is a moderator here at LS and does not offer advice for money. It's all free of charge. He's a champion (as are so many on these threads) of paying it forward!

So, provide your state and someone with way more knowledge than me will chime in and help. Good luck! ~ BBB

[Evan Bedard]

1. If i stop paying for my 2nd mortgage, can they do a foreclosure on me?
2. is the correct way to do this is to stay current on my 1st mortgage and just stop paying for the 2nd mortgage and wait for a settlement offer?
3. I have seen someone very knowledgable called Tom Eason on the forum giving very good advice, Does he work for a credit help company? is there a way i can contact him for help, at this point I am willing to pay for some good advice.

Welcome and thanks for joining the community.

First off, I'm glad to hear you were able to achieve an affordable loan modification on your 1st mortgage. Since your second mortgage is complete underwater the 2nd is in no position to pursue foreclosure on your property if you default on the loan. You definitely want to keep your 1st mortgage current to prevent foreclosure proceedings and having to reapply for a modification on that account. If you have not seen this thread already, I would suggest at least reading the first page of posts as it lists excellent strategies to successfully settle your 2nd. You can also find Tom Eason in this thread and if you click on his name you can view his most recent posts and write to him in any discussion you would like..

Strategy for Settling Your 2nd

[hometrouble]

Thanks Bustedbrokebreaten.

My state is Virginia.

You might want to provide the state you are in so the experts can give you the best advice. It sounds pretty straight up and simple to me that because your 2nd is completely underwater they won't foreclose. You might have seen the thread strategy for settling 2nds here on LoanSafe. Search for that site and read the 1st post. It's a completel outline given by Tom Eason. He is a moderator here at LS and does not offer advice for money. It's all free of charge. He's a champion (as are so many on these threads) of paying it forward!

So, provide your state and someone with way more knowledge than me will chime in and help. Good luck! ~ BBB

[hometrouble]

Thanks Evan, it was difficult and took alot of time but i am so thankful i was able to get on the home affordable modification as it finally let me get back on my feet.

I will read the thread you mentioned, thank you.

Welcome and thanks for joining the community.

First off, I'm glad to hear you were able to achieve an affordable loan modification on your 1st mortgage. Since your second mortgage is complete underwater the 2nd is in no position to pursue foreclosure on your property if you default on the loan. You definitely want to keep your 1st mortgage current to prevent foreclosure proceedings and having to reapply for a modification on that account. If you have not seen this thread already, I would suggest at least reading the first page of posts as it lists excellent strategies to successfully settle your 2nd. You can also find Tom Eason in this thread and if you click on his name you can view his most recent posts and write to him in any discussion you would like..

Strategy for Settling Your 2nd

[hometrouble]

Thanks for the welcome and info Evan, I will check out that thread.

[Evan Bedard]

No problem, you seem to be in a perfect position to try and settle your 2nd mortgage. Please feel free to join in any discussion you like as many others here are in a similar position as yourself attempting to settle their 2nd mortgage/HELOC..

[hometrouble]

Not paying for the 2nd mortgage shouldnt affect my HAMP on my 1st mortgage right? I know if you miss 3 payments they cancel the program but as long as I only miss payments on the 2nd and keep my 1st ok it shouldnt affect it im guessing?

[hometrouble]

Forgot to mention also that my 2nd is with Bank of America, I just read in another thread that BOA never settles?

[Cat Damiano]

hometrouble,

Have you tried looking through the successful settlement thread here;

Success Stories in Settling 2nds

[hometrouble]

hometrouble,

Have you tried looking through the successful settlement thread here;

Success Stories in Settling 2nds

Hi there, I have. Thats where i saw the info. This is whats posted on there " Congratulations and thanks for posting your story here.

I believe your settlement is the first I've seen with a BOA 2nd. Good job!"

Looks like the first time BOA has dont something with a 2nd just happened a few weeks ago out of god knows how many people trying. Those odds seem very bad lol

[Cat Damiano]

There is also a thread that a member posted specifically for BofA settlements here;

Any recent Bank of America settlements on second mortgages?