Any loan modifications in 13? prior to filing?

[flower04]

We are waiting for our tax return to come back and then we can file!!! it's been a long road with many unexpected bumps to say the least.

Like most, our house is a huge expense. We'd sell it and move but we can't get anything near what we owe on it. I've looked into lien stripping and I don't think we qualify due to our 1st morgage is about 5-10K below the current market value. It is our 2nd that is killing us--really KILLING us! We bought into the whole, "take equity out of your house to pay your debt" and then an ARM with a balloon payment. We were up against a wall and were so scared of a bk so we thought this was a way out. We didn't even know that a bk would have been the best way out and now it is a huge regret. Scary to say the least.

Anyway, we are meeting with our attorney in a few weeks and I"m wondering if anyone has advice, comment, experiences, or suggestions. Can we modify both, just one, is it just extended terms or lower intersest or is some of the $ forgiven? I've been looking on the forum and can't seem to find anything specifc about this.
Thanks

[lrprn]

Have you considered walking away from your upside-down house by surrendering it when you file to get rid of both mortgages and have a real fresh start? It's likely the best way to get rid of the second mortgage albatross under the circumstances you describe.

I know it's hard to think about, but after filing can you truly afford to pay both mortgage payments, especially as the second ARM continues to increase, during the 5 years of your 13 and for many more years after that (or until the mortgage situation improves which could also take many years)? This is a golden opportunity that won't come again. Have you discussed this option with your lawyer?

[chloe0724]

Also,

I know a lot of banks are just charging off their seconds becuase they know that forclosure wouldn't be fesable at this point. You may try stopping paying the 2nd and see if they do that. You could delay filing the 13 until you know for sure. If it's charged off, you could include it as unsecured debt.