Settlement For Old 2nd

kingofsting

LoanSafe Member
Jun 15, 2017
3
0
1
49
I went through a BK back in late 2008. I eventually did a modification on my 1st and have been paying on this since then. However, the 2nd never came up again. My wife didn't BK with me, so technically she is still on the hook for it. However, Citi hasn't said squat about the 2nd since my BK.

The second was for $70k and right now the 1st has about $280k on it. The house is worth nearly this much ($340k).

Eventually, I'd like to sell this place and so I'll need to deal with this second at some point. What do you guys think my best option is here working with Citi to get this taken care of?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,799
456
1,000
48
Southern California
www.loansafe.org
The only three ways to get it taken care of is to pay it in full, settle for pennies on the dollar and bankruptcy.

If you sell with the lien and debt, then it would most likely be a short sale scenario and Citi would need to agree to the sale and taking a small loss for it to go through. Hence, they would be shorted and why it is a short sale.

You can try to settle before you list if for sale. Many LoanSafe members have settled their 2nd mortgages for 5-25% of what is owed and have them release the lien.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,799
456
1,000
48
Southern California
www.loansafe.org