2nd Mortgage

ckinkc

LoanSafe Member
Feb 12, 2014
7
0
1
#1
I haven't paid my 2nd mortgage (Ditech) in almost 5 years. Balance is $36k. They gave me a $30k loan is 2010 without an appraisal or anything (HFC at the time). They basically just asked me what my house was "worth to me".

My 1st is with US Bank and current. I would like to refinance to a lower rate but can't due to my 2nd mortgage. Current rate is 7.8% (arm). My first balance is equal to the value of the home currently. I continue to get calls and statements from Ditech but I have ignored them.

I am not too worried about foreclosure as I have no equity, but I would really like to refinance to get a lower rate on the US Bank loan as it is eating up my budget. I doubt Ditech will re-subordinate.

Any suggestions?
 
Last edited by a moderator:

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,794
455
1,000
46
Southern California
www.loansafe.org
#2
Hello,

I would say your best bet is top try to settle it if you have the financial means.

Most people negotiate over the phone verbally until an agreement is made. Once a deal is reached, they will send you the paperwork with the terms which are usually a one sheet paper.

I would start low at say 3% and go up from there. Many people here on LoanSafe have settled in the 5-20% range. So if you can settle lower than you are willing to go, then more cash for you and your family.

Here are some good threads to read and learn about settling your second mortgage:

http://www.loansafe.org/forum/threads/strategy-for-settling-your-2nd.37996/

http://www.loansafe.org/forum/threads/success-stories-in-settling-2nds.40564/

http://www.loansafe.org/forum/forums/debt-settlement.99/
 

ckinkc

LoanSafe Member
Feb 12, 2014
7
0
1
#3
Thank for the reply Maurice. (2) Quick questions. Since the statue of limitation are past (I believe) and they cannot foreclose. I live in Missouri and last payment I made was Dec 2010. Is there a way to have the old lender (Household Realty ) removed from the deed? The current owner of the loan is not on the deed (Ditech). If so, this would help me to refinance my first.

Will communicating with the lender re-start the "clock"?

Thanks Again
SM
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,794
455
1,000
46
Southern California
www.loansafe.org
#4
You are welcome.

Most likely the only way to get them to remove the lien is by working out a cash settlement for the balance you owe. That is what many LoanSafe members have done over the years.

My understanding is that yes, it may restart the SOL clock.
 
Last edited:

ckinkc

LoanSafe Member
Feb 12, 2014
7
0
1
#5
You are welcome.

Most likely the only way to get them to remove the lien is by working out a cash settlement for he balance you owe. That is what many LoanSafe members have done over the years.

My understanding is that yes, it may restart the SOL clock.
 

ckinkc

LoanSafe Member
Feb 12, 2014
7
0
1
#6
Mo, I ran a title history report to research my 2nd. It is showing Household Realty Corp (HFC). I spoke with them and they have no record of my initial loan which means to me that they sold the loan to Ditech? Can I request a lien release from HFC? Are they required to remove their name from the Deed of Trust if they no longer own the loan?

Thanks
SM
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,794
455
1,000
46
Southern California
www.loansafe.org
#7
Hello,

You had mentioned that your mortgage originated with HFC and later was sold to Ditech. If that is the case, then Ditech would still own and service the loan and you would have to request a lien release from Ditech unless they now have sold it to another mortgage servicer.

My understanding is that HFC would be responsible for notifying the country recorder with an assignment of mortgage to Ditech that is recorded in the county records. However, it is VERY common that they do not do this and based on my research, there are now laws stating a definitive time frame on when they should do this and or legal recourse if they do not.
 
Last edited:
Apr 17, 2011
293
7
18
#8
Maurice,
How can I find out who owns my mortgage? When I went to the county a year or two ago and looked it up it still showed the original lender and I'm not sure if the MERS (was that the right name?) is still considered an accurate resource because I haven't seen it mentioned in a really, really long time. Does it do any harm or good to request it from the servicer?
 
Jul 29, 2016
2
0
1
#9
Also consider asking Ditech for a 2MP modification if they refuse to negotiate a lump sum settlement. If you don't qualify for the 2MP program, they may still be willing to modify, as that will at least allow for them to receive some money.

To find out who the ultimate owner of the mortgage is, send a "verification of debt" letter. This is a written document requesting information about the debt, including the balance, original lender, current owner, etc.
 

Naomi4876

LoanSafe Member
Mar 5, 2017
7
0
1
79
#10
Hello,

I would say your best bet is top try to settle it if you have the financial means.

Most people negotiate over the phone verbally until an agreement is made. Once a deal is reached, they will send you the paperwork with the terms which are usually a one sheet paper.

I would start low at say 3% and go up from there. Many people here on LoanSafe have settled in the 5-20% range. So if you can settle lower than you are willing to go, then more cash for you and your family.

Here are some good threads to read and learn about settling your second mortgage:

http://www.loansafe.org/forum/threads/strategy-for-settling-your-2nd.37996/

http://www.loansafe.org/forum/threads/success-stories-in-settling-2nds.40564/

http://www.loansafe.org/forum/forums/debt-settlement.99/