Hi,
I know this is probably a long shot, but I'm running through some ideas in my head. If everything goes well, we will be filing Ch 7 first week of November. After looking at our income and expenses and attempting to live on cash since September 1 (eye-opening experience!!), we realize more and more that keeping our house could be very difficult. If we could somehow do something with the second mortgage, then we would be okay. So I have a couple questions.
One bit of information. Our second was a 125% "freedom" loan through GMAC/Ditech. In other words, they loaned us the difference between our first mortgage and 125% of the home appraisal. So right at that point, we then owed 25% more than the house appraised for. Stupid, stupid, stupid, I know!!!
Is it worth it at all trying to negotiate with the second mortgage company. If so, who negoitiates with them? Us or our attorney? Has anyone had any luck with this?
Does this sound at all reasonable: House is worth, at best, 130,000. That was what the appraisal was when we took the second. We owe 107,000 on first, 43,000 on second, for a total of about 150,000. I hope I can explain this. We would be willing to owe 100% on the house (130,000). That would be 107,000 on the first and 23,000 on the second.
What we're thinking is we would offer second mortgage 23,000 cash that we would get from my inlaws. In other words, take 23,000 cash and "forgive" the other 20,000. This offer would be in lieu of foreclosure, where the second is most likely going to receive nothing at all. So take 23,000 or get nothing after foreclosure.
We live in Michigan, and the economy is horrible, and houses are not selling at all. I would think GMAC/Ditech would rather get 23,000 up front than nothing at all. But then I have a feeling they don't care anyway.
So does anyone think this would work at all? Would we be wasting our breath with them? I'm just curious on everyone's thoughts.
Rick
I know this is probably a long shot, but I'm running through some ideas in my head. If everything goes well, we will be filing Ch 7 first week of November. After looking at our income and expenses and attempting to live on cash since September 1 (eye-opening experience!!), we realize more and more that keeping our house could be very difficult. If we could somehow do something with the second mortgage, then we would be okay. So I have a couple questions.
One bit of information. Our second was a 125% "freedom" loan through GMAC/Ditech. In other words, they loaned us the difference between our first mortgage and 125% of the home appraisal. So right at that point, we then owed 25% more than the house appraised for. Stupid, stupid, stupid, I know!!!
Is it worth it at all trying to negotiate with the second mortgage company. If so, who negoitiates with them? Us or our attorney? Has anyone had any luck with this?
Does this sound at all reasonable: House is worth, at best, 130,000. That was what the appraisal was when we took the second. We owe 107,000 on first, 43,000 on second, for a total of about 150,000. I hope I can explain this. We would be willing to owe 100% on the house (130,000). That would be 107,000 on the first and 23,000 on the second.
What we're thinking is we would offer second mortgage 23,000 cash that we would get from my inlaws. In other words, take 23,000 cash and "forgive" the other 20,000. This offer would be in lieu of foreclosure, where the second is most likely going to receive nothing at all. So take 23,000 or get nothing after foreclosure.
We live in Michigan, and the economy is horrible, and houses are not selling at all. I would think GMAC/Ditech would rather get 23,000 up front than nothing at all. But then I have a feeling they don't care anyway.
So does anyone think this would work at all? Would we be wasting our breath with them? I'm just curious on everyone's thoughts.
Rick
Comment