Loan Modification

[oneidamata]

My Question is, about the the 100% finance which were done as an 80/20.

WHat happen when the 1st loan is modified to lower the interest rate and the second loan is basically forgive,who pay the second loan and how is recorded with title. I have heard that in some cases lenders are willing to forgive the 2nd loan who pay for that and how the loss is manage. If some one has this infor mation please let me know I have notice of default on my property and the lender is required me to pay $10,000 to reinstate my loan, I don't have the ammount and I want to know what I can do. Thanks in advance for your help.

[Moe Bedard]

Hi Oneidamata,

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

Who is the lender on the each of the loans?
What state are you in?
What type of loan is the first and what interest rate?
What is the interest rate on the second?
Are you looking to modify or sell?
How many months are you behind in payments?
Are you also behind in your property taxes?
The lenders aren't forgiving balances on any mortgage loans 1st or 2nd......at this time....
Please let me know....
Thank you,

There will be no forgiveness on the second loan, that must be paid, they may write it off and separate the debt out to a collection agency depending on your state...then collect that way. However the cloud on the title will remain and if you sell then you have to deal with it.

They have various ways to do this and most of them quite unpleasant...however they are not forgiving at this time. The seconds are getting very vigorous in trying to collect recently as the pool insurers and investors are underwater with the losses. So do not expect forgiveness, you really need to contact the Secon and work out manageable payment options with them.