Second Mortgage Questions...Please Help

[Namaste]

We have an 80/20 ARM loan. We are current on our first with Chase but well over $2000 dollars behind on our second with Litton. (Both of us have had severe job cuts, had illness with no insurance, etc) The second is for about $22,000 and we have been paying on it for about 3 years now. Most if not all has gone towards interest and very little towards the principal.

I received a letter on Monday stating they are charging off the account and sending it to a collection agency. I have been attempting to get a loan modification with them for OVER a year and they just keep giving me the run around. It is scheduled to go to the collection agency on the 8th of October. They are almost impossible to get a hold of so I have a few questions for those that may be able to help. My goal is to keep my home, I do not want to walk away from this if at all possible.

I'd like to stop it from going to the collection agency and get some type of forbearance so I can catch up the payments. Of course I can't get in contact with anyone nor will they return my calls. I have contacted a HUD approved housing counselor but they can not see us till October 5th which is only three days before the transfer date to the collection agency. Am I better off just going to NACA or HOPE for the request for forbearance?

I just read Evan Bedard's article Settling your second mortgage for pennies on the dollar. I was wondering if I should try to get a settlement with Litton on this or wait and negotiate with the collection agency if the worse happens and I can not get a forbearance or some other assistance?

Thanks in advance for your help!

[Moe Bedard]

The 2nd will be bought for what you can possibly settle it for and they will try an make a profit off of you. The collection agency can make your life a pain. I would deal with NACA on getting the first dealt with and you try and settle the second.

You have to do whatever it takes to get a hold of someone there that can help you. They have housing centers throughout the country

[Namaste]

Originally Posted by Moe Bedard

The 2nd will be bought for what you can possibly settle it for and they will try an make a profit off of you. The collection agency can make your life a pain. I would deal with NACA on getting the first dealt with and you try and settle the second.

You have to do whatever it takes to get a hold of someone there that can help you. They have housing centers throughout the country

Hi Moe,

Thanks for the response. Actually I am current on my first and have no problems making that payment. After reading Evan's article I'm wondering if I can just settle the second, continue to be current on my first and keep the house?

I faxed Litton's Executive Resolution team on Wedensday and as of yet no response. I'm wondering if an email to some of the executives will speed things along.

[Namaste]

Originally Posted by Namaste

Hi Moe,

Thanks for the response. Actually I am current on my first and have no problems making that payment. After reading Evan's article I'm wondering if I can just settle the second, continue to be current on my first and keep the house?

I faxed Litton's Executive Resolution team on Wednesday and as of yet no response. I'm wondering if an email to some of the executives will speed things along.

I'm still trying to get in touch with Litton. A letter to their Executive Resolution Team did no good. I am now emailing the same letter with a note that I will also be contact my congressman about the situation to the corporate bigwigs. Can anyone answer the question I posted above? Thanks!

[Namaste]

bumping in hopes of someone that can answer my question. Thanks

[3cuttings]

just keep calling their ERT- 713-218-4592, normally have better luck getting thru in the morning. you could call 3 times in a row and get told 3 different things, but at least you can talk to a live person. I've been working on a loan mod. since December....we are in our 2nd trial mod. process. I am working thru NACA....can't get a hold of NACA though, so I contine to call the ERT every 7/10 days.

Good luck!