2nd Mortage Charge Off

[bab2006]

What is the name of your state (only U.S. law)? FLORIDA

This is my situation. I got my first mortgage modified last year and I am paying on time since then. The 2nd mortgage has been charged
off more than a year. Debt is $33,000 in 2nd mortgage. They setup a curtailment of $150/monthly. They want a settlement of $4500, but I don't have money right now and I asked for repayment plan, but they don't want that, they want a settlement amount. Do I need to keep paying the $150 that is only been applied to the $33,000 . I asked them to do a repayment plan of $4500 but they said no.


I don't want to pay $150 for nothing, due this debt is charge off. Also the apt value is $60000 and after the modification this is what shows:
First Mortgage $120,000 (still above the apt value)
2nd Mortgage $33000

If I stop paying the $150, can they foreclosure on the 2nd Mortgage?

What is your suggestion? Thank you!

 

[nanu156]

yes a default on either the first or the second mortgage will cause a foreclosure.

 

[LdiJ]

yes a default on either the first or the second mortgage will cause a foreclosure.

I disagree...otherwise the 2nd mortgage would have already initiated the foreclosure proceeding and would not have charged off the debt. They know that they cannot get anything by foreclosing therefore they won't throw good money after bad.

 

[BigMouthWino]

What is the name of your state (only U.S. law)? FLORIDA

This is my situation. I got my first mortgage modified last year and I am paying on time since then. The 2nd mortgage has been charged
off more than a year. Debt is $33,000 in 2nd mortgage. They setup a curtailment of $150/monthly. They want a settlement of $4500, but I don't have money right now and I asked for repayment plan, but they don't want that, they want a settlement amount. Do I need to keep paying the $150 that is only been applied to the $33,000 . I asked them to do a repayment plan of $4500 but they said no.


I don't want to pay $150 for nothing, due this debt is charge off. Also the apt value is $60000 and after the modification this is what shows:
First Mortgage $120,000 (still above the apt value)
2nd Mortgage $33000

If I stop paying the $150, can they foreclosure on the 2nd Mortgage?

What is your suggestion? Thank you!

Keep paying the $150 a month and get your debts paid off. If you plan to keep up with your first mortgage eventually there will be enough equity for the 2nd mortgage holder to come after your property. Just because the account went into chargeoff does not mean they have lost their right to foreclose. They just will not initiate foreclosure proceedings against you until you have enough positive equity in the property to satisfy their claim.

Try to set aside a bit of money each month and raise $4-5k and see if they'd still be willing to settle a year or two down the road. If you've been staying on good terms with them it is more likely than if you stiff them for years.