Settlement Offer on Second Mortgage

[kate166]

I have a property on Hawaii (non-recourse state). that I bought for $517K as owner-occupied in 2007. I have Ocwen (80%) first mortgage and GMAC (20%) second. Current property value is $370K.
I was able to modify both loans by myself.
OCWEN: 3.95% (fixed till May 2011) and principal reduction of $40K! My monthly payments now - $1965.
GMAC: 6% (from 12%!) till end of loan (balloon payment in 2022). My monthly payments now - $560.

Even after I had my loans modified, I still have hard time to pay them because my monthly income is $3200 after tax.
I want to keep my property.
I paid AmeriHope to help me with a second round of loan modifications. They proposed to get rid of second mortgage with GMAC and then work with Ocwen.

We offered GMAC $4K to settle on my second mortgage with them ($92K). Of cause nothing happened.

I missed my payment on second mortgage this month. Called GMAC and asked for a settlement. They gave me an option to put my property for a short sale and show them an offer. They also asked how much money I can come out for a settlement. I told them $5K at the most.

Does anybody had a success on a second loan settlement before charge-off?

I see many people on this forum looking for a settlement on second mortgage. Please share your experience here.

[Evan Bedard]

Hi kate166,

We offered GMAC $4K to settle on my second mortgage with them ($92K). Of cause nothing happened.

I missed my payment on second mortgage this month. Called GMAC and asked for a settlement. They gave me an option to put my property for a short sale and show them an offer. They also asked how much money I can come out for a settlement. I told them $5K at the most.

Does anybody had a success on a second loan settlement before charge-off?

Yes many lenders are willing to settle second mortgages. They will generally accept an offer anywhere between 5-20% of the remaining balance...

[kate166]

Update.

Had a automated message from GMAC that I am late with my payment and I have to call them back. So, I called and talked to a collection dep repres. She was nice and offer a loan modification (ya, right, they denied me 2 months ago!). I tlod her that I want the settlement - $4K on $93K sec loan. She told me to submit docs for laon modifcation anyway and include on hardship letter request for the settlmt.
My actions now:
1. Amerihope will send them (GMAC) another settlmt offer from me along with financial info. We will include a market analysis shows that my property value is below 1st mortgage loan amount.
2. I place my property for sale. Will get very short offer (less than 1 st mortgage) and send it to GMAC for an approval (they asked for it!).
3. Sit and wait...

[Evan Bedard]

1. Amerihope will send them (GMAC) another settlmt offer from me along with financial info. We will include a market analysis shows that my property value is below 1st mortgage loan amount.
2. I place my property for sale. Will get very short offer (less than 1 st mortgage) and send it to GMAC for an approval (they asked for it!).
3. Sit and wait...

They may require you to send in your financial informaiton before they settle the loan. Im not sure though...