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olgap1311 · Joined: 23 Feb 2010 Posts: 1 1.00 Dollars($)

Hi,
We have 2 loans
First loan (GMAC) – 1, 057,000.00
Second loan (CHASE) - 250,000
Right now, my home is only worth $995,000.
First loan modified without any problem. Second loan modification is in process more 1 year.
Our lawyer recommended stop second loan payments. We haven't made a payment on the second mortgage loan in 108 days. Today we received letter from Chase, they will start foreclosure in 25 days if we will not send a full payment for this period. In these 108 days we didn’t have any info from modification department. We called in loan modification department after this letter; they told that they denied our modification because we didn’t do payment last 3 months.

Can they start foreclosure?

What we can do in this situation?

Our lawyer told what we can file for bankruptcy on second loan. It is Ok for us, but we don't want lose the home.

Thanks, Olga.

smithsussane · Posted: Tue Feb 23, 2010 9:14 pm Post subject:

Hi olgap!

Welcome to forums!

The second mortgage lender will be able to start the foreclosure procedure. However, if they sell off the property at a foreclosure auction, then they will have to satisfy the first lender's dues. You can speak to your second lender once again and check out if they are ready to re-negotiate with you.

You may file Chapter 13 bankruptcy which may help you in stripping off the second lien. You will get a repayment plan from the lender which will help you in paying off the dues within 3-5 years. Thus, you would be able to save the property.

Feel free to ask if you've further queries.

Sussane

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