How to play hardball>Force Lender to modify the deal are eat it the negative equity..

[BANKRUPTINVA]

We want to keep our home. The first and 2nd mortgage companies are not assisting me with any type of modification. The first and 2nd mortgage (242k and 100k) were discharged under ch7 in Feb. No reaffirmation. Both are current ..FOR NOW.....First is an Arm, can jump up to 12.99% in 3 increases- Increases start in August.

Tax value was 189k, going up in may to 249k
Market value 295-320k
242k 1st mortgage, 100k 2nd mortgage.
What if I just stop paying the 2nd mortgage. Why would they foreclose? They would have to buy out 242k loan- assume a ton of costs added to process- all to try and capture 100k, wouldnt be worth it. No personal liability to debt. Why not just pay the first?

[SinkingFast]

The 2nd can indeed move to Foreclose. Once the Sale occurs, the 1st gets paid in full and the 2nd gets whatever is left over. Less costs to Foreclose and resell, of course.

If houses aren't moving in your area, the 2nd could just sit on the property until the market turns around. They could potentially rent the property for the time being. Then sell when the market ticks upward.