Help with 2nd Mortgage

cookiemom

LoanSafe Member
May 24, 2019
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Home purchased in 2006 with an 80/20 split mortgage with Countrywide for $211,000.
  • 1st $168,800
  • 2nd $42,200
BK7 discharged in 2008, with intent to keep home and reaffirm loan.
  • 1st mortgage was approved for loan modification with Bank of America fees taxes and interest @ $187,406.24 with interest starting at 2% the day the house went up for state sale. This loan has fully reached interest maturity at the 4.25% rate. Current payoff is around $143,400. My Loan mod states this loan at the original cost of $168,800 and note signed on same date, although the city tax shows the house technically sold again to me in 2008 when Modification went through. Currently home value according to Zillow is $190,000
  • 2nd mortgage was never affirmed and apparently sold to Real Time Solutions.
    • My issue is with this loan, now with Real Time Solutions that I have NEVER paid on per the advice of BK7 Attorney. Obviously, looking back it was my negligence, I was young when filling for the BK and renegotiating the loan modification, I just wanted to keep my home. I guess I did not understand the full terms of what was going on and that this loan was included in the BK7 but the lender lien would remain on home. Years back, I remember Real Time Solutions calling me to make a settlement offer, and I was skeptical since I never heard of them and could not find them online. At the time there were so many calls/letters etc. I was receiving form creditors I wanted them to mail me everything in writing. I was not just going to give some company I never heard of $9,000. I only received a statement, which did not justify anything for me to understand their hold on the home and I was sure that this was in my BK 7 and discarded. I only receive something in the mail from them (statement) about every 6 months. Recently, I received yet another statement from them, upon fully reviewing, I noticed on the back they posted the pay-off amount of $92,124. So it has been collecting interest!!! WTH! I had a title company do a search and I guess there are 2 liens on the home.
So my question’s are:
  • Do I reach out to them and follow the 2nd settlement process recommended within the forum?
    • I cannot afford another payment, my expenses are maxed out to the limit, I recently just had a baby. How do I get this as low as possible? I have read TIME is my friend, well, there has definitely been enough time lapsed, per Michigan law this has reached the statue of limitation. Although, I have paid enough on the 1st, time may hurt my situation.
  • Should I hire a real estate attorney? What are the benefits in doing this?
  • Are they able to negotiate based on today's market values or do they have to view based on when loan was transferred?
  • Can they now take the equity in the house since I was able to pay it down so much from the help of the low interest?
  • Since there is interest does this me they own the loan and it was not just sent to Real Time Solutions from BOA for collections?
  • Why are they collecting interest all of a sudden?
  • Will they negotiate the original note and dismiss this crazy interest that is more than the principle itself?
    • Any tips?