I need help I do not know what to do.
My 1st 440,000 originally with countrywide sold to BofA then to Etrade.
2nd 75k originally with countrywide sold to BofA now with Greentree (interest only HELOC at 8.75%)
My house in CA is underwater it is worth 350K.
No one would help me. I had tried for years to refi, modify ectra because we have lived paycheck to paycheck. I was always worried about something happening and not being able to make a payment. Then something did happen and I missed 2 months of payments and called HOPE (I called them before when I was current and they could not do anything). I was able to get my first modified to a fixed. The first looks good on paper from what I had before an ARM but now with the escrow I will be paying more a month than I was before.
I do not know what to do with the second they are calling me everyday. My credit was in the 800's before i missed the 2 months of payments. Hope told me that I would have to try to work with Greentree to see if they would modify my loan. I have filled out all the paperwork for the second to be modified and am going to fax it tomorrow. My problem is I am sick of living paycheck to paycheck. I was planning on seeing if they will do anything on my 2nd and also I am now thinking about bankrupcy.
If I continue to pay just the 1st what can the second do? Should I see if they will modify my loan? Should I do bankrupcy just to get rid of my second? I do not have credit card debts. We have done absolutely nothing with our money but pay our mortgage. We used our income taxes to pay our house taxes and 50% of our income went to pay the house.
I seen the how to settle a second. Would this work for me? Would it be better on our credit than the bankrupcy? Can the second foreclose on the house?
Please help me before I fax this to them with all my info.