Posted on: 28th Jul, 2009 01:41 pm
I am in California and I had my 1st loan successfully modified this week under the MHA loan mod and the rep was also going to do something about my 2nd loan (possibly wipe it out) but found out that my 2nd loan got sent to collections last month - with that said, the rep cannot do anything as it is out of their hands.
We cannot afford to pay the 2nd loan ($90K) as our monthly bills and payment for the 1st mortgage will eat up the rest of our paycheck. Do I have any recourse on the 2nd once it's in the collection agency's hands? Is there a way I can have them lower my balance for cents on the dollar? Please advise.
We cannot afford to pay the 2nd loan ($90K) as our monthly bills and payment for the 1st mortgage will eat up the rest of our paycheck. Do I have any recourse on the 2nd once it's in the collection agency's hands? Is there a way I can have them lower my balance for cents on the dollar? Please advise.
Hi woohoo,
Congratulations :) It's great to hear that you successfully modified your first loan.
As far as the second loan is concerned, the lender will not be collecting the dues from you any further. You will get calls from the collection agency and they would ask you to pay off the debts. You can negotiate with the collection agency to check if they could reduce your payments to certain extent.
Thanks
Congratulations :) It's great to hear that you successfully modified your first loan.
As far as the second loan is concerned, the lender will not be collecting the dues from you any further. You will get calls from the collection agency and they would ask you to pay off the debts. You can negotiate with the collection agency to check if they could reduce your payments to certain extent.
Thanks
Thanks, jameshogg -
My property is upside down and my 1st mortgage bal is at $360K+ and the 2nd is at $90K - my property is now worth $299K. I will be able to make payments on the modified amount of my first mortgage.
I sent out a debt validation letter to the collection agency and awaiting for a response from them. Can the collection agency foreclose if I can't afford to make payments?
My property is upside down and my 1st mortgage bal is at $360K+ and the 2nd is at $90K - my property is now worth $299K. I will be able to make payments on the modified amount of my first mortgage.
I sent out a debt validation letter to the collection agency and awaiting for a response from them. Can the collection agency foreclose if I can't afford to make payments?
Hi woohoo,
As far as I know, the collection agency can sue you if you do not pay off the debts. As James has suggested, you should try and negotiate with your collection agency for lowering your payments and then pay off the debts.
As far as I know, the collection agency can sue you if you do not pay off the debts. As James has suggested, you should try and negotiate with your collection agency for lowering your payments and then pay off the debts.