Posted on: 23rd Oct, 2009 11:24 am
we are in default on both our 1st and 2nd mortgage. in july 2009, we received a trial modification plan and began making reduced payments towards our first mortgage. then in august, we received a verbal agreement from the second mortgage for a reduced trial modification payment. we were told to make the trial payments until the formal modification agreement had been worked out. we made the first trial payment on the second mortgage by august 20, 2009. then in mid-september, we viewed our credit report and the second mortgage showed charged-off and we had taken a 150 pt credit hit! upon realization, we immediately called the 2nd and notified them of the mistake. they said they would look into the issue and call us back. we received a call on october 19, 2009 from the 2nd mortgage and they said the loan had been reinstated, but if we did not make another trial payment by october 27th, the loan would be charged-off again. at this time we are trying to stay in our home and we continue to make our trial mod payments on the first, but we are absolutely unable to make that trial payment on the second by 10/27/09. in addition, the 2nd will not provide us with anything in writing concerning the trial modification payments. do we have any ground against the 2nd since we made the initial trial payment in good faith and they charged it off anyway? and after it is charged off this time after october 27th, can we still negotiate a loan modification with the 2nd? if the second forecloses, will the 1st mortgage cancel our negotions for the loan modification?
any input would be helpful. thanks!
any input would be helpful. thanks!
Hi Angela,
It is strange that the second mortgage company charged off the mortgage even though they verbally agreed to accept a reduced trial modification payment. It also sounds strange that they said they had reinstated the loan, but would charge it off if you do not make another trial payment. In this situation, you do not have any ground against the second mortgage company as no written agreement was signed between you and the company. It is true you made the first trial payment in good faith. But since there is no written agreement regarding the trial modification plan, they had the right to charge it off.
If it is charged off, the second mortgage lender will no longer be in charge of collecting the debt. Thus, you will not be able to enter into any sort of loan modification agreement with them. However, you can negotiate with the collection agency or the mortgage company, which holds the debt after the charge off. You can set up a repayment plan and pay off the debt installments. You can also request them to accept a short pay off and settle the debt.
It is strange that the second mortgage company charged off the mortgage even though they verbally agreed to accept a reduced trial modification payment. It also sounds strange that they said they had reinstated the loan, but would charge it off if you do not make another trial payment. In this situation, you do not have any ground against the second mortgage company as no written agreement was signed between you and the company. It is true you made the first trial payment in good faith. But since there is no written agreement regarding the trial modification plan, they had the right to charge it off.
If it is charged off, the second mortgage lender will no longer be in charge of collecting the debt. Thus, you will not be able to enter into any sort of loan modification agreement with them. However, you can negotiate with the collection agency or the mortgage company, which holds the debt after the charge off. You can set up a repayment plan and pay off the debt installments. You can also request them to accept a short pay off and settle the debt.
I also heard that Obama might be doing something with 2nd mortgages? Not sure if that is true or if that would even help me since I have a private lender?
I have a morgage on my house I owe 93,000 and my property is worth 105,000 I need to know how I can lower my payments I have been able to make my payment in three months and they are about to forclose.
Hi Mark!
Welcome to forums!
You can apply for a loan modification with your lender in order to get an affordable payment plan to pay off the loan and save the property from foreclosure.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can apply for a loan modification with your lender in order to get an affordable payment plan to pay off the loan and save the property from foreclosure.
Feel free to ask if you've further queries.
Sussane
I have not had any luck with modification on my 1st. 2nd modified within 2 months without issue. However, 1st advised that only way I could qualify for a modification was if I got behind on my payments, a death in the family, divorce, or a permanent disability.
My hardship comes due to family members who reside with me and I help them with medical issues (medication, etc), no raise in over three years and reduction in pay.
In my line of work, I can't get behind in payments due to civil litigation which may occur. This would get me dismissed from my employment for conduct unbecoming (so our policy reads)
I am at my wits end, I need to stay in the home. Any foreclosure would result in conduct unbecoming and dismissal from employment. No employment, no paycheck to get another place to stay.
If anyone has seen or has some option I haven't let me know.
My hardship comes due to family members who reside with me and I help them with medical issues (medication, etc), no raise in over three years and reduction in pay.
In my line of work, I can't get behind in payments due to civil litigation which may occur. This would get me dismissed from my employment for conduct unbecoming (so our policy reads)
I am at my wits end, I need to stay in the home. Any foreclosure would result in conduct unbecoming and dismissal from employment. No employment, no paycheck to get another place to stay.
If anyone has seen or has some option I haven't let me know.
Hi dempsey!
Welcome to forums!
As you're helping your family members with their medical issues, you should contact your lender and let him know about this. This might help you in qualifying for a loan modification. You can sight this as your financial hardship.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you're helping your family members with their medical issues, you should contact your lender and let him know about this. This might help you in qualifying for a loan modification. You can sight this as your financial hardship.
Feel free to ask if you've further queries.
Sussane
i have a home equity loan with chase and primary loan with chase
can i get the 2nd loan modified??? chase modified lst on trial not under obama plan. what can be done on 2nd??
can i get the 2nd loan modified??? chase modified lst on trial not under obama plan. what can be done on 2nd??
Welcome Janooo,
You will have to contact your second mortgage lender and apply for a loan modification. The lender will look into your financial situation and let you know whether or not he will accept your request.
You will have to contact your second mortgage lender and apply for a loan modification. The lender will look into your financial situation and let you know whether or not he will accept your request.
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welcome ajay,
you should get in touch with your second mortgage lender and apply for a modification of the loan. it will be the lender's discretion whether or not he will consider the modification.
you should get in touch with your second mortgage lender and apply for a modification of the loan. it will be the lender's discretion whether or not he will consider the modification.