HAMP and 2MP

[jhn_plsn]

If the lender(USBank) on my 1st modified to the 31% limit and the lender(BofA) of my second appears to be participating in HAMP, how would one go about using the 2MP program? When BofA calls I am unsure how to proceed.
My situation,
Home value=$220,000(maybe)
1st mortgage balance=$320,000
2nd HELOC balance=$96,000

My original 1st was a portfolio refinance loan.
I believe BofA is participating because when I sign into their website and go into the hardship section there is an explanation and application section for the program.
I have threatened BK but they are not talking settling, period.
Sure would rather file a ch7 instead of a ch13.

[jhn_plsn]

https://www.hmpadmin.com/portal/prog...cond_lien.html

Found the site, but sure would like some colaboration.

[MyHAMP]

The way I understood, they would adjust the second mortgage the same way as they did under the waterfall under the first HAMP. It might even be possible that the loan gets extinguished - the 2MP offers incentives for that as well.

[davephx]

THERE IS NO 2MP PROGRAM available currently.

No servicers have signed up. It is voluntary and the incentives are too low.

Treasury is trying to negotiate with the servicers but nothing new for weeks.

[jhn_plsn]

OK, I read through the guidelines but have one question.

If the modification on the first is based on the 31% maximum allowable debt to income ratio then how can any additional payments(2nd) be helpfull for long term solutions? In time the borrower would be back in a similar situation.
It does seem much more likey that a lender would extinguish rather than watch a borrower write them off in a ch 13 and get nothing. 3% is 3%.
Should I offer 3% firm to settle and extinguish? Or go through the program. It seems long and drawn out, but better than nothing.

[MyHAMP]

Originally Posted by jhn_plsn

OK, I read through the guidelines but have one question.

If the modification on the first is based on the 31% maximum allowable debt to income ratio then how can any additional payments(2nd) be helpfull for long term solutions? In time the borrower would be back in a similar situation.
It does seem much more likey that a lender would extinguish rather than watch a borrower write them off in a ch 13 and get nothing. 3% is 3%.
Should I offer 3% firm to settle and extinguish? Or go through the program. It seems long and drawn out, but better than nothing.

There would be certain scenarios where it would be helpful. After all, a modification of your first mortgage doesn't "free" you from your legal obligations under the second. But it's true that it doesn't seem to be very helpful.

However, offering them a settlement can't hurt. Some people also use a "tactic" by filing CH7 and offering a settlement after discharge because chances are low that they will accept a 3% settlement as long as you are still liable for the loan (i.e. did NOT file BK). This CH7-tactic, however, comes with a risk because there is no guarantee they will settle. In CH13, the stripping of an unsecured second mortgage is the law.

Once we are done with our HAMP on the first, we will take the CH13-route to get rid of the second. From the income-numbers, we could also file CH7 but why should we put anything in jeopardy? The additional cost of the CH13 over a CH7 can easily be covered by the amount we would have to pay as a settlement.

[jhn_plsn]

Originally Posted by MyHAMP

Once we are done with our HAMP on the first, we will take the CH13-route to get rid of the second. From the income-numbers, we could also file CH7 but why should we put anything in jeopardy? The additional cost of the CH13 over a CH7 can easily be covered by the amount we would have to pay as a settlement.

Thats the current plan for us to, unless there are changes in the rules/laws.

[robertberner]

Hi, I am a writer for BusinessWeek. I would like to talk to you about your second mortgage. Can you please contact me at robert_berner@businessweek.com or call me at 312-451-7149. Robert