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  1. #1
    Join Date
    Dec 2009
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    5

    Default First Mortgage Current, Second Mortgage in Default

    My question involves a foreclosure in the State of: Colorado

    We recently filed a chapter 7. During the process of this filing and waiting period, we managed to modify our 1st mortgage with E Trade. The 2nd went into default. We are 7 months behind. The bankruptcy was finalized and closed end of August. Citibank called us to start paying again. I took the opportunity in trying to negotiate a payoff. We owe $370,000 on the 1st and $117,000 on the 2nd. Homes in the area are like everywhere else, many foreclosures, houses up for sale for about 2 years now and ones that have sold are probably around $300,000 to $400,000.

    Citibank called and I said I could not afford to the 2nd, but I had some money in a 401k that I could cash in, if they wanted to negotiate. I offered $30,000. She said she would take that offer back to her boss. About a week or so later, there was a man taking a picture of the house. I approached him and he said it was for Citibank. It has been about 3 weeks now and I still have not heard from Citibank about my offer.

    Has anyone negotiated a reduced amount on their 2nd mortgage with Citibank or other lender while current on 1st?

    Has anyone been in the same situation and had the 2nd mortgage lender by out their 1st mortgage and foreclose?

    How long does something like this take to negotiate and settle on an amount?

    I look forward to your replies!! Thanks.

  2. #2
    Join Date
    Jul 2006
    Location
    Ohio
    Posts
    1,126

    Default Re: First Mortgage Current, Second Mortgage in Default

    I think you're asking for a lot. It doesn't sound like you re-affirmed your mortgage, right?

  3. #3
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    Dec 2009
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    5

    Default Re: First Mortgage Current, Second Mortgage in Default

    Quote Quoting moburkes
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    I think you're asking for a lot. It doesn't sound like you re-affirmed your mortgage, right?
    I am not sure what you mean by re-affirm the mortgage?

  4. #4
    Join Date
    Jul 2006
    Location
    Ohio
    Posts
    1,126

    Default Re: First Mortgage Current, Second Mortgage in Default

    The new bankruptcy laws require that you, in writing, acknowlege you're going to keep paying the note, and be responsible for it after the bk, or that you're going to let the house go.

  5. #5
    Join Date
    Dec 2009
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    5

    Default Re: First Mortgage Current, Second Mortgage in Default

    Yes, we did that at the bankruptcy with the lawyer, but does that have anything to do with the 2nd and trying to negotiate?

  6. #6
    Join Date
    Jul 2006
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    Ohio
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    Default Re: First Mortgage Current, Second Mortgage in Default

    You did that on the 1st and the 2nd?

  7. #7
    Join Date
    Dec 2009
    Posts
    5

    Default Re: First Mortgage Current, Second Mortgage in Default

    Quote Quoting moburkes
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    You did that on the 1st and the 2nd?
    I actually have an email into my lawyer asking him about this reaffirming stuff. Because it was our knowledge and understanding with him that we were firm in remaining in our house and keeping it. He had said to us that we are responsible for the house....it is not part of the bankruptcy. It is up to us to make the payments and we have and we are current on the 1st mortgage. As I had said earlier the 2nd mortgage through Citibank did not take the payment out of our checking acct through the period of bankruptcy until it was finalized. Then were notified about bringing loan up to date because the bankruptcy was cleared. That is when I started trying to negotiate a reduced amount and that is where I am at now.

    Are you saying that if both of these loans were reaffirmed we cant do this? One if the 1st was but not the 2nd?

  8. #8
    Join Date
    Dec 2009
    Posts
    5

    Default Re: First Mortgage Current, Second Mortgage in Default

    Quote Quoting speight
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    I actually have an email into my lawyer asking him about this reaffirming stuff. Because it was our knowledge and understanding with him that we were firm in remaining in our house and keeping it. He had said to us that we are responsible for the house....it is not part of the bankruptcy. It is up to us to make the payments and we have and we are current on the 1st mortgage. As I had said earlier the 2nd mortgage through Citibank did not take the payment out of our checking acct through the period of bankruptcy until it was finalized. Then were notified about bringing loan up to date because the bankruptcy was cleared. That is when I started trying to negotiate a reduced amount and that is where I am at now.

    Are you saying that if both of these loans were reaffirmed we cant do this? One if the 1st was but not the 2nd?

    Moburkes......you out there? I was hoping you would answer the above?

  9. #9
    Join Date
    Jul 2006
    Location
    Ohio
    Posts
    1,126

    Default Re: First Mortgage Current, Second Mortgage in Default

    Quote Quoting speight
    View Post
    Moburkes......you out there? I was hoping you would answer the above?
    I'm saying if you reaffirmed you should have been saving those payments, getting prepared for the discharge of your BK.

    I have no idea if Citi will do what you've asked, but they are under no obligation to do so.

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