Settlement of Second Mortgage

[JL-707]

I'm currently underwater on my home by close to 45%, I would like to keep my home, I'm in the process of trying to get a mod on my first and I've been thinking about trying to buyout of my second. I don't know how I should write up the proposal and I'm hoping someone here might have something I could use as a guide, a sample letter perhaps?

[Dan Bailey]

JL,
Sample hardship letters, can be found in the "homeowners toolbox" on the Home page of the forum.
Principle reductions are not being done by the investors, so asking for an interest rate reduction and perhaps lenghtening the timeline of the loan are what you would want to do.

[JL-707]

Thanks for the reply, I'm not looking for a principal reduction I'm looking to settle the second for cents on the dollar and get a rate reduction and a fixed rate on our first.

[Dan Bailey]

JL, small reductions in seconds have been seen, and rate reductions on both first and seconds have also been seen.

[Moe Bedard]

You can google the term...........
How to Go About Offering a Settlement on Second Mortgage

and see what the steps are and if you can find a letter that way........

[JL-707]

I've tried Google and haven't found samples of the kind of letter I'm looking for.

[Moe Bedard]

It might be something that you can get through a debt management attorney......................I have only seen settlement letters that are sent out after the negotiation from the lender with the terms of the agreement. I have not seen one to start the negotiation.........

[JL-707]

Hi ***, thanks for your response, I thought of maybe going through an attorney, I was just hoping to avoid it if necessary, considering their fees. But I may end up going that route anyway.