How to Determine if a 2nd Lender Will Foreclose

[lacrossedad]

Advice on settling my 2nd mortgage

Hello,

I need advice on settling my 2nd mortgage.

Property location: Pennsylvania
Primary residence

Balance of 1st Mortgage: $704,000 (TD Bank)
Balance of 2nd Mortgage: $178,000 (Guaranty Bank)

Zillow Estimate: $698,000

We are current on both mortgages. If I stopped paying 2nd mortgage for 6+ months, would the 2nd mortgage lender foreclose? I'd like to know my chances of settling the 2nd mortgage. I've read TomEason's excellent posts about settling the 2nd.

Thanks in advance.

 

[lostincredit]

Hello and good morning.
First I would like to thank everyone on this site for helping us through the rough times, without this forum I do not know what my family would have done .Here is now our situation.
We were both had lost our jobs and were only to keep paying on our first which is now down to 10k we had stopped paying on the second
(heloc)which with interest is now 102k,we are now 600 days past due and the bank (BOA) has said they have sent this for an "EQUITY EVALUATION" the house on Zillow value is 90k but really is 75k.They keep saying they want to modify but we want to settle.
Do you think they will foreclose or settle?Thank you very much for all your help.

 

[TomEason]

lostincredit

Thanks for your post.

I recommend you re-read post #1; the answers to your questions can be found there.

If it were me I wouldn't rely on a valuation from Zillow, which are usually inacurrate. I recommend you get a current valuation, like a CMA from a RE agent who farms your neighborhood.

FYI, if your BOA HELOC is underwater, they won't FC. I recommend you seek to eventually settle by following the guide at post #1 of the following thread. Your patience will be required as this will likely be a long process.

http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-94.html

 

[TomEason]

lacrossedad

Thanks for your post.

First off, I recommend you immediately stop paying on your 2nd (Guaranty Bank). Then you might get a current valuation; Zillow's valuations are not to be relied upon.

I also suggest you re-read post #1.

FYI, if your 2nd is underwater, Guaranty won't FC. I recommend you seek to eventually settle by following the guide at post #1 of the following thread. Your patience will be required as this will likely be a long process.

Strategy for Settling Your 2nd

 

[RoseDee]

Green Tree bill full amount of loan due

I have a question about my Green Tree loan.
I have a 2nd loan (10 year interest only at 8.75%) originally through Countrywide then to BofA and then with Green Tree. I have not paid them since June 2012. I have had no contact with them since. I received a bill from them last week showing the full amount of the loan is due in 2 weeks. What is this? Are they trying to foreclose but giving me a chance to pay before they do this? I am current on my 1st and was trying to follow the strategy for settling your 2nd. Do I just ignore this letter?

 

[TomEason]

RoseDee

Thanks for your post.

No one here can help you without knowing your numbers, i.e. your property's value and the loan balances.

 

[RoseDee]

RoseDee

Thanks for your post.

No one here can help you without knowing your numbers, i.e. your property's value and the loan balances.

Sorry. My 1st was originally with Countrywide $440,000 then Etrade (was modified), and now is with Bayview (balance is 420,000. I am current on this.

2nd Countrywide $80,000 then BofA and now Green Tree. It is a non secured loan. 10 year interest only/ARM. Current principle is $73,500 and on this bill they are showing an interest of $2000. So they are billing me for $75,500 that is due in two weeks. No detail explaining how they came up with the interest charge. I like in Southern CA. I have not talked to or had any letters from them since 6/2012. This is the first letter from them. Current home prices are about 500,000 and my home is in need of unseen repairs so I am not underwater but not over for them to want to pay to foreclose. I am just concerned why after all this time they are sending me this with no detailed info and saying to bring this current I have to pay the full amount and in 2 weeks?

 

[WalkinBlues]

im curious, i am waiting out Wells Fargo on my underwater 2nd, assuming that they will not FC. unfortuantely ive seen a number of users here get sued for breach of contract. Is there any rhyme or reason to WFs decision to do this?

 

[RoseDee]

Should I send them settlement offer

Sorry. My 1st was originally with Countrywide $440,000 then Etrade (was modified), and now is with Bayview (balance is 420,000. I am current on this.

2nd Countrywide $80,000 then BofA and now Green Tree. It is a non secured loan. 10 year interest only/ARM. Current principle is $73,500 and on this bill they are showing an interest of $2000. So they are billing me for $75,500 that is due in two weeks. No detail explaining how they came up with the interest charge. I like in Southern CA. I have not talked to or had any letters from them since 6/2012. This is the first letter from them. Current home prices are about 500,000 and my home is in need of unseen repairs so I am not underwater but not over for them to want to pay to foreclose. I am just concerned why after all this time they are sending me this with no detailed info and saying to bring this current I have to pay the full amount and in 2 weeks?

Should I send them a settlement offer?

 

[Evan Bedard]

im curious, i am waiting out Wells Fargo on my underwater 2nd, assuming that they will not FC. unfortuantely ive seen a number of users here get sued for breach of contract. Is there any rhyme or reason to WFs decision to do this?

Walkinblues, this depends on your state and most states prohibit the lender from suing the borrower on a secured 2nd. You're in Ca so I would not be worried about being sued for breach of contract, only VERY few states allow this and the members you've seen are likely in FL or MD..

 

[RoseDee]

Should I send them a settlement offer?

Tom should I ignore this letter? Should I try to send them an offer? They want the full loan balance to make this loan current.

 

[TomEason]

RoseDee

Thanks for your post.

I recommend you obtain a current valuation of your property. It's evident you're guestimating on it's value. Once the valuation is obtained, you'll know which strategy to pursue.

 

[RoseDee]

RoseDee

Thanks for your post.

I recommend you obtain a current valuation of your property. It's evident you're guestimating on it's value. Once the valuation is obtained, you'll know which strategy to pursue.

The house 2 doors down just sold for 500k

 

[TomEason]

RoseDee

Thanks for that update.

I still recommend you get a current valuation. You might ask a RE agent who farms your neighborhood for a CMA (free).

 

[Larry2630]

Hi Larry2630

Thanks for your post.

There's a reason that thread has been closed. Every conceivable situation has been addressed at least once there. FYI all the posts remain available to read; I recommend you use the search tool on that thread to find your answer.

Hi Tom,

I accidentally asnwered the call from the collections agency (Veripro Solutions - sister company of NationStar Mtg). Told them there is no way I can pay the 2nd mortgage balance in full (123K). The guy told me to submit documents (pay stubs, bank statements) so we can work out a modification. Can 2nd loan still be modified if it has been charged off? NationStar Mtg charged off my 2nd mtg to Veripro. They are also asking me some money (any amount) just to be able to make a payment. Should I go ahead with the modification? If I'm not going to provide them with the documents that they asked, what should I tell them. Thank you so much for your advise.

 

[TomEason]

Larry2630

Thanks for your post.

I presume your 2nd is underwater.

If so I suggest you forget about a loan mod of your 2nd; a settlement is always a better deal for the borrower.

I recommend you seek to eventually settle by following the guide at post #1 of the following thread. Your patience is required as this will likely be a long process.

http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-94.html

 

[Larry2630]

Larry2630 Thanks for your post. I presume your 2nd is underwater. If so I suggest you forget about a loan mod of your 2nd; a settlement is always a better deal for the borrower. I recommend you seek to eventually settle by following the guide at post #1 of the following thread. Your patience is required as this will likely be a long process. http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-94.html

Both my loans (1st & 2nd are underwater). Is it wise to tell them that I do not wish to modify and would just settle? The collections agency is now calling me every week. Should I just start ignoring their calls again? I know you expressed on your reply to refer to the guide post #1 but not sure if I can go back to ignoring their calls after they told me that they will work on modification. Thanks.

 

[TomEason]

Both my loans (1st & 2nd are underwater). Is it wise to tell them that I do not wish to modify and would just settle? The collections agency is now calling me every week. Should I just start ignoring their calls again? I know you expressed on your reply to refer to the guide post #1 but not sure if I can go back to ignoring their calls after they told me that they will work on modification. Thanks.

Again, I recommend you follow the Strategy guide. If you don't want to do so, then you should do whatever you deem best for your situation.

 

[Evan Bedard]

I agree with Tom, following the strategy is your best bet if you want to settle your 2nd for pennies on the dollar.

not sure if I can go back to ignoring their calls after they told me that they will work on modification.

Yes, you can always continue to ignore their calls, they cannot force you to accept a modification offer or apply for other forms of assistance..

 

[Larry2630]

I agree with Tom, following the strategy is your best bet if you want to settle your 2nd for pennies on the dollar. Yes, you can always continue to ignore their calls, they cannot force you to accept a modification offer or apply for other forms of assistance..

Thank you so much, Tom and Evan. Will follow the strategy. Will keep you posted.