Talking Mortgage into saying I'm current

[ShotMyOwnToe]

Anybody got any great ideas for this....met with atty last night,...We qualify for Chapter 7, we're below median income, but want to keep the house.

Right now we're current on the 1st Mortgage, but owe about $3000 to the 2nd Mortgage. If I can't get them to do that, then we have to do the Chapter 13..which will suck.

Thanks!

[BassBoy]

As much as I would love for any lender to lie for me and say that I don't owe as much as I actually do (LOL!), I doubt that would ever happen. Too much risk for them. I would suggest that before you file, could you make a payment arrangement with them in order to pay the arrears over time. Are you able to increase the payment of the 2nd loan in order to pay the arrears back within a year or so? That way, you would have sort of "settled" this debt before you file. Anyone else got some info or suggestions?

[ShotMyOwnToe]

No..not asking them to lie...but to encourage them to stick arrears on backside of loan...show we're current...Chapter 7...and keep on going

[BassBoy]

That's a possiblity.

[HHM]

You could try a work out agreement.

Sticking the payments on the back end is what is known as "recasting" whereby, the lender cancels the missed payments (i.e. therefore you are current) and sticks them on the back end of the loan. However, recasting is becoming more rare ever since Fannie Mae stopped offering it as part of their workout procedures, but it can't hurt to propose it.

However, you went into arrears for a reason...unless you can continue to afford the current payment (i.e. whatever caused the arrears is now gone, or mitigated) simply recasting the missed payments won't solve the underlying problem.