About the stop payment on 2nd Mortgage through Green Tree

**njhill** · 07-15-2012, 12:53 PM

I have an 80/20 mortgage on my house - $209,000 for the 1st, $48,000. I refinanced the 1st through HARP (now paying to Flagstar Bank) last year at 5.8%, but Green Tree denied my application to reduce the interest on the 2nd (currently at 9.375%) even though I was able to prove financial hardship from tax returns due to a payroll reduction. My house's value is now approximately $195,000. After reading the stories on this forum, I've decided that it's time to stop paying the 2nd mortgage with the hopes that I can get Green Tree to reach a settlement with me. I don't want to lose my house- but with no equity in the house and Green Tree unwilling to negotiate the terms of the loan, I am stuck paying an enormous 2nd mortgage without the ability to refinance. I am hoping if I keep up with the 1st and play hard-ball with Green Tree, they will be willing to budge and I can stay put. My concerns are: I live in California. Is it possible that Green Tree can garnish my wages? Also: Given the statistics on my loan & house value, is there a chance I could still be foreclosed on? And lastly: I'd like to discuss my loan documents with a lawyer just to make sure everything is in order. Should I go specifically to a real estate lawyer?

**Evan Bedard** · 07-16-2012, 08:20 AM

I don't want to lose my house- but with no equity in the house and Green Tree unwilling to negotiate the terms of the loan, I am stuck paying an enormous 2nd mortgage without the ability to refinance. I am hoping if I keep up with the 1st and play hard-ball with Green Tree, they will be willing to budge and I can stay put. My concerns are: I live in California. Is it possible that Green Tree can garnish my wages? Also: Given the statistics on my loan & house value, is there a chance I could still be foreclosed on? And lastly: I'd like to discuss my loan documents with a lawyer just to make sure everything is in order. Should I go specifically to a real estate lawyer?

Welcome and thanks for joining the forum.

In CA your 2nd mortgage holder will not come after you and attempt to garnish your wages. Since your property is underwater your 2nd mortgage holder is in no position to pursue foreclosure on your property which will make them much more willing to negotiate a settlement if you default on the account. We have many members here who have, or are currently in the process of settling their 2nd mortgage. If you read the first posts in the "strategy for settling your 2nd" thread provided below it will show you everything you need to know about this process..

Strategy for Settling Your 2nd

Success Stories in Settling 2nds

**njhill** · 07-16-2012, 09:07 PM

Evan,
Thanks for your reply. I am going to suspend my GT 2nd mortgage payments immediately. I read through the thread you send me, plus several others. There is a lot of information to sift through. I am going to meet with a lawyer this week to help me with the specifics of my financials. Would it be recommended to send a cease and desist letter immediately to avoid harassing phone calls? It seems the info on the thread are mixed, but it seems like it could prevent a lot of stress, and any formal settlement would need to be in writing anyways. So, no harm in it, right? Thanks in advance for your thoughts.

**stuckinNJ** · 07-24-2012, 08:13 PM

Hi njhill,

I have GT as my 3rd (yes, 3rd mtg.). I stopped paying about 6 mths. ago. My home is way underwater...worth $60k and total mtg. debt equals $178k. I still worry about them foreclosing, but at the same time struggle to see how it would be worth it at all to them since they are 3rd in line and the house is so underwater, plus I live right across the street from not 1 but 2 foreclosed homes that have been sitting for 3+ years.

Just wanted to chime in since this was GT related, good luck and keep us posted.

Originally Posted by njhill

Evan,
Thanks for your reply. I am going to suspend my GT 2nd mortgage payments immediately. I read through the thread you send me, plus several others. There is a lot of information to sift through. I am going to meet with a lawyer this week to help me with the specifics of my financials. Would it be recommended to send a cease and desist letter immediately to avoid harassing phone calls? It seems the info on the thread are mixed, but it seems like it could prevent a lot of stress, and any formal settlement would need to be in writing anyways. So, no harm in it, right? Thanks in advance for your thoughts.

**njhill** · 07-25-2012, 09:19 PM

I met with a real estate/ bankruptcy lawyer, as well as a HUD authorized credit counselor last week. Both confirmed that the 2nd would have no way to foreclose on the property (at least not any time in the foreseeable future.) They both suggested that I opt to completely walk away, but I'm too attached to the property to go that far just yet. July was my last payment to Greentree. I'll update as things progress and am keeping an eye on what happens to my credit score (currently 780)...

**Housebroken13** · 07-26-2012, 09:01 AM

stop paying greentree and then ignore all inquires by them. Take steps to issue a cease and desists letter to them as well. It's been over 2 years since I payed them and have heard ZERO from them. Just got my 1st modified w/ BOA. I don't even think they have the paperwork in order. I filed for Chp. 7 in 2009 and the 2nd was never reaffirmed w/ the current servicer at the time then Greentree swooped in and purchased the servicing rights while were in the process of filing.