Can I negotiate a lesser amount on my second mortgage after receiving a Chapter 7 discharge?
Question Details: I received a Chapter 7 discharge three months ago. I kept the house and have never missed a mortgage payment. I have a first mortgage of $1410 per month and a second of $988. The first mort. is 165K and the second is 69K. The home value has dropped so badly now to 170K. My wife just lost her job. We wanted to offer at least 50% per month (about $500) on the second mortgage until she can find suitable work. Can we negotiate something with them or is it likely they will reject it? If they reject & foreclose, they would never recoup the 69K. We're offering what we can. Any suggestions?
Bankruptcy Law Answers
I am a lawyer in CT and practice in this area of the the law. I suggest looking into a mortgage modification. A mortgage modification is where the bank agrees to reduce the interest rate on the loan making if affordable for you so that you can avoid foreclosure. most banks do not want property on their books and will work with you to do a modification. you will need to show the bank financials and complete their application. you do not need a lawyer. i suggest calling them asap to start the application process. you may be able to do a modification for both mortgages.
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