How to Determine if a 2nd Lender Will Foreclose


LoanSafe Member
Hi Evan and Tom,
My story sounds a little familar to others posted and would like your advice. I live in ElDorado County in CA. I have a 1st with BofA for 704K and a 2nd with PNC for 150K. Countrywide appraised it in 2006 for $1 million. Last January my house value was $430K based on the tax bill. I stopped paying on both mortgages as BofA would not help us. In a written letter from BofA, they recommended I go delinquent if I wanted a HAMP. I did not qulify for the DOJ since my loan was owned by BofNY Melon. This was extremely difficult as I have never been late with any bill for 40 years and had an outstanding credit rating. I stopped paying and received a very small mod on the 1st. PNC with the 2nd, charged off. My house is now valued at $492K. I have not heard anything from PNC for almost a year. My husband is forced out of his employment on Sept 1 with his income being reduced by 50%. No way will we be able to make our current 1st mortgage payment. I am hoping to get a new mod with BofA due to change in circumstance and/or HARP 3.0 passing. We would love to keep our home. Since I have not heard anything from PNC, should I just sit back and wait? Would there be any reason in your opinion to even try to negotiate a settlement with them since our home value is so underwater? What is your take on why I have not heard anything? It is going to be quite sometime (many years) before my home has any equity. Can or will PNC try to foreclose on my home? Will the 2nd ever be extinguished by PNC? Also, are you aware of any additional programs out there that would help us with this underwater mortgage? Thanks in advance for all your advice and any help you can point me to.


LoanSafe Member
Hi Tom or Evan. Thanks for all your excellent advice. We would like to give you an update on our 2nd mortgage settlement strategy. PNC sold our second to SEC last year and have been sending monthly statements which we have politely ignored. We have not paid on this loan for 2 years. We just finished making our 3rd trial payment on our first mortgage with BofA and have yet received the new terms on our 1st mortgage loan. We are also hoping that we will be included in the latest 16 billion dollar settelment from BofA. We currently owe $700,000 on first and $150,000 on second. BofA recently valued the property at $478,000. We are $222,000 underwater on 1st and when adding in the second we are $372,000 underwater. SEC recovery department called on Sat and we returned the call today. We reviewed the steps in the previous forum on strategy to settling the 2nd. They offered to give us a .01% loan on the unpaid balance and will add all late fees to the back end of the loan. We politely said that was ridiculous and countered their offer with a very low 1% settlement amount. The gentleman was not happy and wanted us to submit the offer in writing along with all financial documentation which we refused to provide. He stated that without the financials, they would not even entertain the offer. He agreed that 1% was better than nothing but would not accept our offer. He also said that SEC would not make any offers and that all offers would have to come from us but again they would not accept any offer without financial disclosures. That's not going to happen! We are hoping to settle between 5-10%. Now I guess we will wait for their next call. Have their been any new updates on the strategy for settling the 2nd? Any additional recommendations you can give us?
Thanks again!


LoanSafe Member
Good Morning. Some comments and advice from the Loansafe Gurus.
Need to Know my Options in my case.

BK Chapter 7 Discharge on 01/2011, Loans not reaffirmed.
State: Florida
Property value: 189000 (comparables)
1st Mortgage Balance: 128000 Current (Nationstar)
2nd Mortgage Balance : 54000 (30 months Behind) no payment since 08/2012. (Ocwen) Following how settle 2nd strategy from TomEason
Send a letter for Settlement purpose 20 Months ago, not a word from lender.

Need to know if Ocwen would foreclosure? if I still underwater? Can I refinance to pay both loans and start fresh with only One loan, What can I Do to keep the property?

Need your feedback.



LoanSafe Member
Have similar problem:
Chapter 7 discharge 12/13
No reaffirm on any mortgages
Live in CA
1st BofA: $104k
Heloc with balloon due 8/15 just transferred to SLS...I believe ETrade is owner: 60k
Value per Zillow is $145k

Need to know my options. I am current on both 1st and 2nd. Saving for possible settlement on 2nd. What happens at balloon payment due date if I don't pay? Or if I just continue to make monthly payments? Any advice appreciated!