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.