Questions: Need your help

[Jennif4]

Here is our background:

We are in CA and bought our home for approx. $400K 4 years ago. The house is now valued at approx. $250,000.

Our first loan was interest only and the second loan (both with BOA) was interest only jumbo loan. Our last payment was March 2009, and so far we've received no notifications.

We had been working with NACA and just got an offer that would bring the interest down to 1%. That is great, but since we were already paying interest only, the 1% doesn't bring the payment down very much (only a few hundred). We want to keep the house if we can, but have already decided we are going to be ok if we walk away.

We came back with asking BOA to null our 2nd mortgage ($75,000) so that we would have that payment removed and could afford the payment. We asked for that about two weeks ago and hadn't heard back.... until we got a letter yesterday saying our 2nd mortgage was transferred/sold to another lender. I don't know if this had anything to do with that... or if they are just moving over some smaller loans.

Questions:

1. Has anyone accepted a Mod, paid one month, and then stopped again.... allowing the months until default to start its process again?

2. Has anyone stopped paying their 2nd mortgage (with another lender) while still paying their first? What happens? Will the house still go into foreclosure, or is it just a debt that follows you around like a creditor?


Thanks for your help!

[Evan Bedard]

Hi jennif4 welcome and thank you for joining.

1. Has anyone accepted a Mod, paid one month, and then stopped again.... allowing the months until default to start its process again?

2. Has anyone stopped paying their 2nd mortgage (with another lender) while still paying their first? What happens? Will the house still go into foreclosure, or is it just a debt that follows you around like a creditor?

If you accept a mod and quit making the payments the mod will no longer be in affect..

It is possible for the 2nd to foreclose if you fall too far behind. But right now it is not very likely to happen because of the drop in value of the property and the 2nd would not get anything if they foreclosed..

You should request a settlement on your 2nd for maybe 10% or so of the remaining balance. You probably won't get an answer right away and you must follow up at least once a week as well..