Posted on: 15th Aug, 2009 07:33 pm
hi,
we have our second mortgage with boa (was countrywide) neither first or second was re-affirmed. haven't gotten our ch.7 discharge yet, but i am planning for that time--hopefully next month.
our second is for about $94,000; it is a balloon mortgage at 11.875% interest, with a monthly payment of close to $1000.had the house appraised for $251,000 down almost $70k from the purchase price in '03 and even more from the 2nd we took out in '06 (the first mortgage is still owed about $245,000 at 5.25%).
we are current on both and want to keep the house for the kids' sake. how likely are we to work something out with boa, from peoples' experience, since if the house goes into foreclosure they will only get about $5k? i'm hoping at the very least to work out an interest drop to something not loanshark-like, if not a settlement--or else we may just have to walk away.
i'd also like any tips on the best way to approach this whole situation (stop payments once discharge happens, keep paying and try negotiating, etc.)
thanks!
we have our second mortgage with boa (was countrywide) neither first or second was re-affirmed. haven't gotten our ch.7 discharge yet, but i am planning for that time--hopefully next month.
our second is for about $94,000; it is a balloon mortgage at 11.875% interest, with a monthly payment of close to $1000.had the house appraised for $251,000 down almost $70k from the purchase price in '03 and even more from the 2nd we took out in '06 (the first mortgage is still owed about $245,000 at 5.25%).
we are current on both and want to keep the house for the kids' sake. how likely are we to work something out with boa, from peoples' experience, since if the house goes into foreclosure they will only get about $5k? i'm hoping at the very least to work out an interest drop to something not loanshark-like, if not a settlement--or else we may just have to walk away.
i'd also like any tips on the best way to approach this whole situation (stop payments once discharge happens, keep paying and try negotiating, etc.)
thanks!
Hi johnnyrock!
Welcome to forums!
If you reaffirm the debts, then you would become personally liable for the mortgage dues. In such a situation, if you do not pay off the dues or walk away from the property, then both the lenders would foreclose the property. If you reaffirm the debts, you should negotiate with your lender in order to get a payment plan which will help you in paying off the mortgage dues.
If you find that none of the lenders are ready to give you an affordable plan, it's better not to reaffirm the loan. If you do not reaffirm the loan, you won't be personally liable for the mortgage dues. Thus, if a foreclosure sale takes place, the lender will not be able to sue you for the deficient amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you reaffirm the debts, then you would become personally liable for the mortgage dues. In such a situation, if you do not pay off the dues or walk away from the property, then both the lenders would foreclose the property. If you reaffirm the debts, you should negotiate with your lender in order to get a payment plan which will help you in paying off the mortgage dues.
If you find that none of the lenders are ready to give you an affordable plan, it's better not to reaffirm the loan. If you do not reaffirm the loan, you won't be personally liable for the mortgage dues. Thus, if a foreclosure sale takes place, the lender will not be able to sue you for the deficient amount.
Feel free to ask if you've further queries.
Sussane