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2nd mortgage confusion post BK Greentree

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    2nd mortgage confusion post BK Greentree

    Where to start.....

    Bought a house in 2003 and did an 80/20 split. Filed for ch 13 in 2005 and was completed in April 2010.

    1st mortgage has been transferred to a different company and is current...no issues there.

    2nd mortgage has been transferred 3 times and is currently with Greentree (as of 12/09).

    Here is where it gets confusing. Went through a divorce last year (ie financial difficulties) and stopped paying on 2nd mortgage. (house is totally mine and he signed off on interest in house so I don't have to sell or refi)

    When I came into some cash I called them to see if I could negotiate any late fees or anything and got quite a shock. Lady on the phone said that because of my bankruptcy my 2nd mortgage now was at 0% interest, no late fees, no minimum payment and I should just pay when I could and offered to settle for 70% of what was owed. I really didn't understand what was happening with the debt after discharge. I thought everything went back to the way it was before the BK. I have since done some research (which brought me here) and I have some questions....

    On my credit report this debt only appears on 1 report and states "included in bankrupcy" and "discharged." I checked with the county clerks office and green tree is no where on there. The last thing it shows is a transfer to another company in 2005. I went back and looked at my bk papers and the debt was not stripped.

    I don't have enough cash to settle right now. I plan on staying in the house at this time and am not sure what to expect. If greentree isn't listed with the county clerks office and I did want to sell...what happens there? I don't want to keep sending them monthly payments if at some point I am going to settle with them at sometime for significantly less that the full amount. I haven't made a payment in 6 months and haven't heard a peep from them. No letters. No calls. The lender that carries my 1st mortgage resumed sending monthly statements after my BK was completed as I expected.

    Fortunately, I am not underwater with this house and believe I have about $10,000 or so equity. Would they notify me prior to starting foreclosure proceedings to work with me? Just very confused.

    #2
    Your 2nd mortgage holder can't ask for payments post discharge, but they still have a lien on the home. (Unless you see a release of lien or discharge of mortgage at the county recorders office, someone still has a lien on the property)

    Since you have equity in the home, and it sounds like you want to keep your home, start saving money. When you have 10% or so of the balance owed them, call and talk to them about negotiating to release the lien.
    Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
    I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

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      #3
      How does one generally start the negotiation process? Do I call or just send them a certified letter with a lowball offer? I appreciate all the advice and info here. Thanks guys.

      Also...my 1st mortgage was just recently transferred to SPS. My payments are current on the 1st and have been for over 5 years. I was wondering if anyone has had any success with getting their interest rate lowered. I have thought about calling and and saying "hey...lower my interest or I'm gonna refinance with someone else." Not sure how effective that would be.....just curious.

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        #4
        Originally posted by newbie2 View Post
        Your 2nd mortgage holder can't ask for payments post discharge....
        Are you sure this applies in this case as well? I thought mortgages wouldn't be discharged in CH13 BKs..
        Filed CH7 9/24/2010, 341 on 10/28/2010, Disch.&Closed: 1/6/2011. FICO EX: 9/2: 672.
        FICO EQ: pre-filing: 573, After BK Public Record: 568, 10/3: 673.
        FICO TU: pre-filing: 589, After BK Public Record: 563, 9/2: 706.

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          #5
          I'd like to see how this turns out for you with Green Tree my HELOC with them is completely unnderwater, and i'm 180 days past due. Trying to get a charge-off then settlement if possible.

          Comment

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