Hoping to settle 2nd, but prices rising

[al91206]

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

1st with Cal-Vet: $175K (current)
2nd with Bank of America: $45K (haven't paid in about a year)
HELOC with Bank of America: $15K (haven't paid in about a year)
Appraisal: $215K & slowly rising

I went through Ch. 7 BK and I haven’t paid my 2nd or HELOC going on a year now (about 6 months post BK). I’m a veteran and have my first through Cal-Vet (California Veteran's Dept), my 2nd is with Bank of America. I was hoping to use the settlement method, but prices here are slowly rising and currently my home has about 35K of equity (my first is 175K and my 2nd is 60K, home is valued at 210K).

My lawyer said BofA is not entertaining any offers from anyone at the moment re: 2nd settlements and to “season the debt”. Also, when I got my 2nd Cal-Vet made them sign something that says their 2nd loan is “subordinate” – does any of that matter? I heard there are different rules for veterans but I’m not sure. Should I be hoping that Bank of America charges the 2nd and HELOC off?

Any info is appreciated.

 

[OHRoadwarrior]

Why should they charge it off? They will take your home sooner or later. Better to allow you to pay all the expenses.

 

[al91206]

Why should they charge it off? They will take your home sooner or later. Better to allow you to pay all the expenses.

Are you saying that because of the rising price and the LTV? Bank of America does charge off 2nd mortgages and also settles them, but are you saying in this instance you don't think they would charge it off?

 

[OHRoadwarrior]

Are you saying that because of the rising price and the LTV? Bank of America does charge off 2nd mortgages and also settles them, but are you saying in this instance you don't think they would charge it off?

Yes, they have a lien against the property. They will get their money sooner or later.

 

[al91206]

*Resolved*

Was lucky enough to have an organization lobby on my behalf and my 2nd and HELOC were forgiven as part of the Bank of America / Dept of Justice settlement. Hope others can jump aboard this - good luck to you all.