Loan Modification Question with 1snd and 2nd Loan

[STRIPER1970]

First of all,

This website really has really good information and I really appreciate how everyone tries the best to communicate with one another. After reading some of the posts I have some questions myself and would like your feedbacks

I am in NY and have two loans. a 300,00 loan ARM at 8.99% with Wilshire Credit corporation that will expired in December 09 and my monthly is 2,283.00. I also have a 2nd loan(HomeLoan) with Teacher's Federal for 50,000 at 11...% paying monthly 633. Neither my taxes or my insurance are included in my mortgage. For lots of reasons I felt behind on both of my mortgages. My house is now worth 250,000. When the primary loan went into foreclosure 6 months ago I searched on the web and found UCMA.com which for a small fee were very helpful. They were able to work with my primary mortgage Wilshire and workout a 6 month prepayment for 2,020.00 which I paid ontime and finished last month(I also learned those 6 payments I made Wilshire paid my past property taxes). I called the Loss Mitigation at the beginning of this month to start a loan modification and after three weeks and two phone calls there were no updates. I guess my first question is since I paid on ontime for the past 6 months would with their agreement would that make it easier on the loan modification.. I was very cleared to them I want to keep the home and can not afford no more than 2,020.00 including my taxes and insurance. How do I compromise or fight for a low permanent fixed rate for 30 years?

2nd loan- I've been late for the past few months up to two months so every month I make a payment I'm still behind one.
How should I proceed the loan modification with the second mortgage? Should I wait to finalize the first mortgage? Also, since the second loan has a lien in the house does Wilshire needs to work with the Teachers Federal to finalize the primary loan modifcation?

Please advice.

[Moe Bedard]

Hi STRIPER1970,


Welcome to the forum and thank you for joining..........

You would need to contact the second and begin the process of modification with them as well.............if you receive a modification through Wilshire..........ask them if you would need to get the second to re-subordinate their position behind Wilshire.............this is a very important step and is overlooked on many occasions causing the modification on the first to be null and void.

Wilshire
Loss Mitigation:
888-917-1050

[selfemployed]

Hi ***,
I had no idea that you had to see if the 2nd would be ok with it. I thought that was only if you were refinancing the first not just modifying it.
I have Countrywide for my first and National City for my second but never even thought to ask if modifying the first would work with a second.

Good information, I will have to check with Countrywide. They told me yesterday that a Fedex package was sent to me with a modification. If I like their offer the last thing I need is for it to become null and void.

[snapple candy]

***,
Would contacting the 2nd be just as important if the same lender was handling the 1st? I realize that the HELOC is handled by a separate dept and considered more of a consumer loan but secured (not anymore). Both mine are with WAMU and I have not addressed the 2nd for modification and ready to go there while the other is in process. Curious what best way to go about this is? Thanks

[Moe Bedard]

snapple candy,


We have had others on the forum receive modifications on HELOCs for short term............because the HELOC rate at this time are low......so they had been able to get the rate lowered for a period of 1-3 years. You can ask the person that is taking care of your first..........in some the same person will be able to help you with the HELOC as well.

selfemployed,

It isn't in every case...........but if it is a part of the modification that you are being given it would be indicated in the modification docs...........so read them over carefully............

[snapple candy]

Thanks ***,
My Heloc is at a good rate since it is tied to prime although I am way under water and the paper is worth nothing. I have heard others on this blog talk about negotiating their 2nds down and the lender writes down the rest.

I have not discussed 2nd with loss mitigation and not had positive results with them as they have offered me a bogus loan modification. I just called JP Morgan Chase Executive offices (suggested by my congressman) yesterday and they are taking over the case and will get back to me in 72 hours.(well see) They seemed genuinely responsive and very apologetic for the lack of customer service at WAMU and the guy even gave me his name and extension number. I will approach them on the 2nd mortgage when and if I hear back from them.Thoughts, suggestions?

[Moe Bedard]

Good Luck on the negotiations!




Keep us posted.

[STRIPER1970]

***,

Thanks for your replied. I called Wislhire and I was told I need to call the 2nd Loan Company and start a loan modification with them. Do you know if CH13 is really eliminating this type of loans? I'm not sure how to proceed the 2nd Loan. Is it better to try modifiying for pennies in the dollar yet or BK13. Right now I don't care about my credit but saving my house and have enought moeny coming in a month.

Thanks again..

[Dan Bailey]

Striper1970,

Problem is, if in bk, the first cannot work with you.

[STRIPER1970]

Thanks for your quick reply Dan.

I was hoping to finalized the first loan get the first payment then start the process on the 2nd loan.

[snapple candy]

Striper,
Although backwards, getting 1st handled before 2nd might make sense. FYI: There are provisions in the new (HR 1106) legislation on the floor that are calling for BK judges to be allowed to do principal reductions in BK. As you might imagine, the lenders and investors are heavily lobbying against it and it is being stalled. I have not heard about 2nd being discharged in BK yet. They are consumer lines of credit and may be dischargable in Chapter 13. This is a question for BK attorney. There is a BK Attorney Consumer Advocate web site that has a wealth of info and you may find some answers there. If you are filing for Chapt 13 anyways, you might want to find out before trying to negotiate it. If you are only considering filing BK to discharge 2nd (and not a bunch of other debt that is overwhelming you), you might want to try negotiating first as some are having good luck with that. Filing BK can be serious business and long lasting effect on you and thought out carefully with an attorney.

[baileys dad]

Hello ***,
In your initial response in this thread, you say it is important to see if the second mortgage will re-subordinate their second position. I had the opportunity to attend a NACA forum yesterday and am going to start the process through them. They say they will only be dealing with the first, as the first and second have different servicers. Could you explain the significance of the second mortgage re-subordinating their position? Also, I don't know if this makes a difference, but in my case, the property value has dropped such that the second has become essentially unsecured.
Thanks,
Rob

[Moe Bedard]

I said to look at the modification documents carefully...it is not on every modification as a standard..........but we have seen on occasion that the second is required to re-subordinate as a condition of the modification and that when overlooked it has cancelled out modifications on firsts.

[baileys dad]

thank you, ***....
quick question...My second mortgage has recently become very proactive in trying to set up some kind of modification, or so they say...I know you cannot offer legal advise, but it was my plan to first secure an agreement with the first mortgage and then deal with the second, as my prop value has dropped about equal to the value of the second...logic being that the second cannot foreclose without purchasing or satisfying the first....
any downsides to this approach??
thanks in advance for any insight and have enjoyed/learned much from your numerous posts...

[Moe Bedard]

That would be a question to pose to the Professor in the Deed in Lieu section of the forum.