My question involves a foreclosure in the State of: Florida
My wife purchased a property in 2006. Got two mortgages at 100% financing. We both lost our Jobs and got new ones making 1/2 of what we used to make, failed to pay the mortgages. First Lender filed for foreclosure on 8/2007 and we were adviced to file for bankruptcy. The bankruptcy got discharged in 1/2008 (both mtg included). On March 2008 we received a 1099 A from the 2nd Mtg Lender for 53k. Recently we negotiated a Loan Mod with the first lender that we though it included the payoff of to the 2nd lender but it did not. They stop the foreclosure process.
1. Can the first lender do a loan modification without having the 2nd mtg company subordinate the lien?
2. If the 2nd mtg company sends a 1099-A do they still hold interest in the property or do they have to remove their lien?
We are afraid to start paying a loan mod having a 2nd lien, on the property, that we know we can't pay.