Posted on: 07th Jan, 2010 01:06 pm
some quick background. i bought my place back in 05'. i'm about 200k underwater. i'm currently in the trial program for a modification on my first. i'm also negotiating with my second mortgage holder (citibank) to settle for the amount that i owe.
on my second i owe 115k. i offered 7500 to settle. they accepted the offer but added the stipulation that along with paying 7500 cash, i would owe another 16,900 as a promissory note payable per month for 180 months, a payment of $94 per month. they added this because they said my offer was too low.
so my question is, should i take this deal. also, i'll be receiving a 1099 for the difference between what i settled for and what i originally owed, around 90k. i thought the 7500 was a good deal for them considering if i default on the mortgage they probably won't get anything considering i owe more on the first then the property is worth. should i play hardball?
once my first is permanently modified, i plan to keep my home. should i take this deal with the second? does anyone have any experience with this?
on my second i owe 115k. i offered 7500 to settle. they accepted the offer but added the stipulation that along with paying 7500 cash, i would owe another 16,900 as a promissory note payable per month for 180 months, a payment of $94 per month. they added this because they said my offer was too low.
so my question is, should i take this deal. also, i'll be receiving a 1099 for the difference between what i settled for and what i originally owed, around 90k. i thought the 7500 was a good deal for them considering if i default on the mortgage they probably won't get anything considering i owe more on the first then the property is worth. should i play hardball?
once my first is permanently modified, i plan to keep my home. should i take this deal with the second? does anyone have any experience with this?
Hi drisee!
Welcome to forums!
If you plan to keep the property once your first mortgage is modified, then it's better to accept the offer which your second lender is giving you. If you want to lower the amount of your second mortgage further, then you should contact your lender and negotiate with them. If he doesn't agree to negotiate further, then you'll have to go with the present offer.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you plan to keep the property once your first mortgage is modified, then it's better to accept the offer which your second lender is giving you. If you want to lower the amount of your second mortgage further, then you should contact your lender and negotiate with them. If he doesn't agree to negotiate further, then you'll have to go with the present offer.
Feel free to ask if you've further queries.
Sussane
Thanks so much for the reply. I guess my main concern is whether or not it sounds like a good deal to the others on this forum. It sounds like your answer is yes. Based upon the details of my case does it sound like a good deal to you?
I'm thinking it's a good deal. The tax liability since i'll be 1099ed for the difference scares me, but i think i'm able to get around that because i'm told it could be a tax exemption due to the fact that i'm not in a good financial position and my liabilities are outpacing my assets.
Thanks again for the advice.
I'm thinking it's a good deal. The tax liability since i'll be 1099ed for the difference scares me, but i think i'm able to get around that because i'm told it could be a tax exemption due to the fact that i'm not in a good financial position and my liabilities are outpacing my assets.
Thanks again for the advice.