How to start settlement on 2nd with citi

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LoanSafe Member
Feb 20, 2018
Ive read alot and wondering how I should start. Here is my story. Filed chapt 7 in 2011 discharged the same yr. First was with BofA for 240k, 2nd was citi 44k, both were not reaffirmed. I kept paying on the first to stay in the house but stopped paying the 2nd in 2011. First is now in the 230 range and zillow says home is worth 249. Id like to settle with citi but after all of these yrs not sure how to approach them. I havent heard a peep out of them since '11. Ive read about folks settling for 3-5% and that sounds doable for me if they would accept such an offer. What should be my first step? Thanks


LoanSafe Member
Jun 20, 2017
First thing is to check with your county clerk or register of deeds and see who has the lien on the property for the 2nd mortgage. If citi doesnt hold the lien anymore, you don't have to contact them at all.

Im in a similiar situation. chapter 7 discharge of 1st and 2nd, (with Citi) did not reaffirm. stopped paying on the 2nd and citi sold/transferred the lien to united guaranty. Basically, since the debt has been discharged, no one can collect on the debt but there still is a lien on the property.

Find out who has the lien and go from there.