Just got our CMA (market analysis)

[donnaeve]

My husband and I have met with a lawyer and are/were planning to file a Chapter 7. As part of the loooong checklist that the attorney gave us, we had to get a CMA done on the house. The CMA is about 3K less than what we owe on the first mortgage alone.
2nd mortgage is 82k and we received a 1099-c for it and then letter from a collection agency for it. Do we have to do a chapter 13 if there is a possibility we can do a lien strip? Or can we stay our course with the 7 and this will give us better leverage to settle with the collection agency that has the 2nd lien?

Thanks for all advice!!
~Donna

[drowning123]

I assume you're staying in the house.

[donnaeve]

Yes, we are planning on staying in the house. Can't even find a house for rent big enough for our family (6 of us) let alone comparable to what we are paying for the mortgage, so we are staying in it. We are up to date with the first that was modified a year ago so would like to pay and stay. Not re-affirming either mortgage.

[drowning123]

I would say file for Chapter 7 since you really want to get rid of the 2nd and you want to pay and stay on the first. Pay and stay on a 13 and a 7 are the same. With the 13, you'd be on a payment plan, so why not just get rid of everything?

[donnaeve]

I didn't think you could get rid of a 2nd on a 7..can you? If we could, that would be great! I see that your a new yorker also, whereabouts?

[Pandora]

Just a FYI - because you did a CMA - it doesnt mean you're in the clear from value to 1st mortgage - in order to strip the 2nd. More and more 2nds are fighting strips to the teeth and unless you have an actual appraisal vs. a CMA / BPO (which is usually done by most 2nds and tends to be higher than value) - you may not be as safe as you think.

You should have an actual certified appraisal done on a URAR form in order to be as close to 100% certain on its actual value. Appraisals range in cost from $250-$500 depending on who, what, when, where . Ours was about $400 I think.

Here's a little link that describes the difference between CMA, BPO and Appraisal that might help you.

http://sarahiouslyspeaking.com/2009/08/cma-and-bpo-and-appraisal-oh-my/

Good luck to you - fingers crossed!

[donnaeve]

Thanks for your insight, pandora! I think we will just stay our course and turn everything we have over to the attorney. The check list he gave us says "Bankruptcy appraisal or CMA" so I'll think we will hold off on the certified appraisal for now. We almost have all of our documents together so now we just need a little more money for the attorney's fee and then we can finally file. I have to say, I feel sooo much better emotionally and physically since we made the decision to file! Thanks for the luck, we could certainly use it! Oh, and for the link!
~Donna

[Pandora]

NP - just wanted to make sure you knew there was a difference between the 3 We just got confirmed and did a lien strip - its a roller coaster ride to say the least (at least, for us it was with our 2nd).

Positive thoughts your way!

[drowning123]

I didn't think you could get rid of a 2nd on a 7..can you? If we could, that would be great! I see that your a new yorker also, whereabouts?

Yes, 7 is the best!!! Gets rid of everything except student loans, IRS taxes and child support. Let's just say "upstate." LOL.

[needanswers]

If you want to strip the 2nd, you'd want to do the 13. If you qualify for a 7, your 13 payments will be minimal, wouldn't they?

[drowning123]

Yes, 13 payments would be very minimal. They can't ask you to pay what you don't have.