Home Loans and Support

2nd Mortgage Not reaffirmed now threaten to charge off

Discussion in 'Credit Repair' started by rmadams77, Jul 8, 2011.

  1. rmadams77

    rmadams77 LoanSafe Member

    We are in Oklahoma, in 2008 we had a Ch 7 bankruptcy discharged, during which our first and second mortgages were not reaffirmed. We have not modified either of them. Last summer we put our home on the market (short-sale) bc my husband was relocated to a different state. The home has been on the market for one year with no luck. We have just fallen behind on both mortgages. Our 2nd mortgage is threatening to charge the loan off and has said they will make it impossible for us to sale.

    We are trying to figure out what to do...rent for less then what would pay both mortgages (seems like a horrible idea and can't really afford long term); continue to try to get a short-sale and just call the 2nd mortgage bluff, allow the first to foreclose, or rent the home - catch the first mortgage up and let the 2nd charge us off.

    If we allow them to charge us off, will they come after the home and what will happen if we eventually do try to sale the home. Any advice would be great because we are at the end of our rope.
  2. Ready2Run

    Ready2Run LoanSafe Member

    If the first forecloses the 2nd gets nothing. Tell them if they want to block the sale that you'll just let the first foreclose and since you didn't reaffirm they can both go to hell.
  3. HopingtoFind

    HopingtoFind LoanSafe Member

    I am not understanding why you would want to bother with Short Sale as opposed to living in the house as long as possible and letting them foreclose since you went through BK.

    The main reasons people decide on the Short Sale is so the hit on a credit is not as much as with foreclosure.. questionable. And so that they could negotiate away deficiency. The above reasons are completely irrelevant in your case. The worst possible damage to your credit was already done with BK and you would not be liable for any debt if you let them foreclose.
  4. rmadams77

    rmadams77 LoanSafe Member

    My husband was relocated to another state, therefore the family goes...the house is vacant. I have not desire to live in the home since it would mean splitting up my family.
  5. rmadams77

    rmadams77 LoanSafe Member

    I guess I should also add the numbers here...have read a ton and doesn't seem like Greentree has bought the 1st to foreclose in any of those case, but I am not sure if any of them have a BK that wasn't reaffirmed.

    First: $152,000
    Second: $83500
    Home value is: $180,000
  6. TomEason

    TomEason LoanSafe Guide Staff Member


    Thanks for your posts. While I can't profess to know OK foreclosure law and procedures, it wouldn't matter if I were in your shoes. I would relocate with your husband and rent your home out and enjoy the positive cash flow rental income stream, and hope the lender takes its time to FC so you can enjoy this income stream for a long time. Positive rental cash flow is both easy and fun when you're no longer payments for mortgages, property tax, utilities, etc. Good luck!

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