My question involves a foreclosure in the State of: Colorado
I recently went through Chapter 7 due to a business failure. I could not fit into a Chapter 13 since I had too much secured debt. So I did not get a lien strip.
Now I am trying to negotiate down and pay off my second. The house is worth about $720,000 and still going down. The 1st is $740,000 and the Second is $340k. The first is with ASC and the 2nd is with BoA. I am not in a BoA class action settlement state.
I have been able to land a good job and I can afford to pay my 1st. However, I cannot afford to pay on the 2nd. I also do not see any scenario where paying off $340K more than my property is worth is ever going to make financial sense.
I would like to get BoA to settle for 10-20 cents on the dollar since the house is upside down and they cannot collect on a default judgment.
My fear is that BoA will just put my loan on file and come back 5 years from now when the property is worth something again.
I know this is a hard sell to the bank. Any suggestions on how to present this or negotiate this?
1) Can an attorney help me with the negotiation?
2) How do I find a good one, most seem to be paper mills?
3) Would it help to have the attorney assist with a forensic audit?
4) Should I pursue a non-discharge Chapter 20 instead?
5) Has anyone seen an investor or hard money lender ever really work?
6) Any other suggestions?