Can the holders of our second force foreclosure ?

[southwest]

We would appreciate a knowing answer: We were just granted a permanent mod (after 1 excruciating year of negotiations). We just received a letter stating tha GMAC has turned our second over to some low-life collection agency ..We had made an offer to GMAC to buy-out the second for 7.5% of the balance. They had told us that the offer was under strong consideration. Yet, we just got the letter stating that GMAC sold our second, after modifying out first !!!
Qustion: Can the investors holding the second lien force us into foreclosure if the 80% first mortgage lien has been accepted in a permanent mod agreement with GMAC ?
Can anyone tell us ?
Thanks

[heidi79]

If you are upside down in value and the amount of the second is unsecured, they would have to go after the first mortgage in order to get paid.

Now that the debt is sold to the collection agency, basically gmac has taken it off of their books and contracted it out the collection agency to try to collect from you. Now is the time to start trying to settle with the collection agency, start your settlement offer lower than the 7, they will try to drive up from there, once you get that settlement, make sure you have something in writing that the settlement is payment in full and that they connot come after you later for any unpaid balance.

[auroraproblem]

To answer your question, yes, they can force foreclosure. As long as they have that lien on the property and the force sale clause.

Are they likely to? Not in this climate as long as your home is worth less than the first mortgage.

Sounds like they are already going the route of collection and settlement, hopefully you can settle for something reasonable. Personally as the other poster noted, would start much lower, perhaps stating 4% in cash (always mention how you are borrowing from someone else). Never give them the impression you are in good financial fitness or have money in the bank willing to settle.

Also do not mention that you have completed a mod on the first. As the account is now closed, there is nothing the 2MP is much going to help with. They need to believe that you are still struggling to keep the house.