Settling the 2nd....

[miked2023]

I've recently come to the realization that the only way to stay in my home is to settle off the second (110K).


The house is about that much upside down and both the 1st and 2nd are owned by CW set to adjust fully amortized in December.


I just missed my second payment and am taking this opportunity to get out of debt. My wife just lost her job too, so there is a real hardship there that can be documented.


Is there any chance a settlement can be accomplished (thinking 5K max)? We're prepared to go all the way to foreclosure if necessary because we cannot afford the house with my income alone. We could afford it with the first only, fixed at a decent rate.


I talked to a lawyer who said he could draft up a letter proposing this but I'm sure I could do that myself for nothing.


Any suggestions? Wait for a NOD and then propose this to CW directly? They're going to loose out on the second no matter what happens (Short Sale, Foreclose) so why not settle with us and let us stay? We do not want to go in BK or anything crazy like that.


Thanks.

[Evan Bedard]

Hi miked2023,


CW(BofA) is actually offering some homeowners settlements on their seconds. Have you tried giving them a call to discuss the settlement? There are some homeowners on this forum who have settled their 2nds with bofa themselves..

[indeep1959]

Originally Posted by Evan Bedard

Hi miked2023,


CW(BofA) is actually offering some homeowners settlements on their seconds. Have you tried giving them a call to discuss the settlement? There are some homeowners on this forum who have settled their 2nds with bofa themselves..

Interested as well in this, seeing as my real problem is with my second.
Can some of the homeowners who have been able to do this check in? I'd like to see what they said/did etc.

I'm trying to work with NACA but I may have hit a wall with them.

[miked2023]

That's great news. I haven't called them yet because we just recently went late (and I'm taking this time to pay off my car, etc. so I can afford the first or rent somewhere when it all washes out) How long do you think I should/could wait to call them and make this offer? Is September too late? By then I will have my car and credit card paid off. We will be four months late at that point. I live in Cali.

[Sacdude]

Hello There,

I too have a similar situation and needed some advice

I have a 80/20 loan in California, which is all purchase money. 336K (held by JP Morgan and serviced by WF) is the first mortgage. The HELOC is 84K held by WF. I am almost 3 payments behind on the Heloc and about 45 days late on the First Mortgage. All loans are interest only and first resets in 2014. Loan balance is 420k and value is 270K.

I tried loan mod through JW but doesn't look like its working. WF said they will charge off the HELOC after 90 days. So does that mean I can get rid of it if I start paying the first mortgage and not the heloc? Would they release the lien if its charged off?

I am late on my 45k CC debt and am trying to settle that too while I take the hit on the credit for the house. I was about to fill out the WF mortgage financial sheet for modification but they want me to sign on that sheet which says they can virtually share all my info (including my paystubs) with other creditors. This makes me nervous as I am fighting about 5 creditors at the same time and dont want to give out my 80K per year paystub to them. I lost all my savings etc in the stock market crash and am technically insolvent. But in the end I do want to settle all the accounts and start afresh. I am hoping to settle the accounts and not file for bankruptcy.....

With all this in mind, here are a few questions I have -

I want to keep the house if I can get rid of the HELOC and modify my first into a 30 yr fixed. If WF charged off the HELOC and sent me a 1099C how do I get them to release the lien? I dont want to worry about it thinking they might come back after 5 years to haunt me. Its a purchase money loan so I know they cant file deficiency in CA.

Does anyone think that giving my financial information to WF for modifying the first loan might be risky knowing that I have other creditors like BOA and Citi wanting their unsecured loan to be paid?

Any answers would be greatly appreciated,

Thanks,

Sacdude

[rockraider3]

Originally Posted by miked2023

I've recently come to the realization that the only way to stay in my home is to settle off the second (110K).


The house is about that much upside down and both the 1st and 2nd are owned by CW set to adjust fully amortized in December.


I just missed my second payment and am taking this opportunity to get out of debt. My wife just lost her job too, so there is a real hardship there that can be documented.


Is there any chance a settlement can be accomplished (thinking 5K max)? We're prepared to go all the way to foreclosure if necessary because we cannot afford the house with my income alone. We could afford it with the first only, fixed at a decent rate.


I talked to a lawyer who said he could draft up a letter proposing this but I'm sure I could do that myself for nothing.


Any suggestions? Wait for a NOD and then propose this to CW directly? They're going to loose out on the second no matter what happens (Short Sale, Foreclose) so why not settle with us and let us stay? We do not want to go in BK or anything crazy like that.


Thanks.

My thoughts:

1. Settling $110k for only $5k is probably not going to happen. That's less than 5%... I'm working to settle my Wells Fargo HELOC and having a very difficult time getting them below 30%, and my account has already charged off. Although I've heard stories about settlements for 10-15%, but it probably depends upon what kind of leverage you have. If they can't seek a deficiency judgement and the first note holder is under water, you probably have a bigger hammer than I do.

2. If both loans are owned by CW / BofA, know your state anti-deficiency laws. Here in California, you might have some protection on the 2nd, if they are a sold out junior as a result of the lender's own action on the senior loan. But this could differ by state. Again, just some more leverage for you to negotiate with your lenders.

[kdtran08]

Originally Posted by rockraider3

My thoughts:

1. Settling $110k for only $5k is probably not going to happen. That's less than 5%... I'm working to settle my Wells Fargo HELOC and having a very difficult time getting them below 30%, and my account has already charged off. Although I've heard stories about settlements for 10-15%, but it probably depends upon what kind of leverage you have. If they can't seek a deficiency judgement and the first note holder is under water, you probably have a bigger hammer than I do.

2. If both loans are owned by CW / BofA, know your state anti-deficiency laws. Here in California, you might have some protection on the 2nd, if they are a sold out junior as a result of the lender's own action on the senior loan. But this could differ by state. Again, just some more leverage for you to negotiate with your lenders.

Hi, you sound like you know what you're talking about so I am here to ask for some advises. I got a 3 month trial package from Bank of America (originally Countrywide) and submitted it for my first loan. My second loan is with Bank of America (since the first date). I want to settle my second loan also but don't know where to start. Another member showed me link that said the second loan is supposed to modified when the first got modified. I just don't know how to start...

[kdtran08]

Btw, my second loan is 40,000 at 8.99% for 15 years fixed. Thank you!