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Not sure if someone can help on this one......


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I have a second mortgage on my home.   We had some financial issues and fell behind slightly with BOA.   I called them and they said they could do a loan modification or work out a payment plan to catch up.   Great!   I gave them all the information multiple times and each time it seemed to get lost in the process.   I did the paperwork over the phone again 3 weeks ago.  When I did not hear back from them the following week I called them back.    They then told me my loan is now being serviced by real time resolutions as of April 30th.   I thought ok they just sold my loan.  I call Realtime and they have no record yet but said it can take a few weeks. 

 

I started reading up on this company and it seems they are on the same line as Midland.  They purchase loans that are behind etc?   I was trying to get help!   My first mortgage is being paid and up to date.   We definitely are upside down in our mortgage.   The second Mortgage owed is about 68k.    Has anyone ever heard of this company?   Reading some items online people are settling with this company?   How badly will this hurt my credit?

 

FYI ,my second mortgage is a balloon with 9.5.   Dont ask me how we got suckered into that one but we did.   My first one is only a 3.1%.

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You mentioned you are upside-down on your mortgage.  Do you mean if your home was sold, it would not fully satisfy the 1st mortgage?  If that's the case, your 2nd mortgage is in a "junior" position.  Check your state laws, but you might be in the driver's seat on this one because the 1st mortgage has to be satisfied before the 2nd mortgage company can "try" to see benefit.  Depending on your income, a 'junior' lien holder's position = nothing as long as you continue to satisfy your 1st mortgage.

 

I'm in a similar situation in AR.  My home's worth is WELL below what would satisfy the 1st mortgage.  Therefore, my 2nd mortgage company, in its 'junior' position gains nothing as long as I keep up payments on the 1st mortgage.  It would certainly not be in the 2nd mortgage company's interest to force the issue, as they would spend thousands of dollars and collect nothing.  They will wait, hoping my fortunes improve at some point in the future -- that's really all they CAN do.

 

You may be in a similar situation.  If I allowed foreclosure to proceed, the 1st mortgage would likely be satisfed enough.  The 2nd mortgage would then become an unsecured debt.  Since I would be unable to pay, I would have to file bankruptcy to get the 'now-unsecured' debt written off.

 

Good luck!

 

Jimmy

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you can settle out, just contact them and tell them what is going on, but they will try to get you to settle for 50% or higher.  You need to know just what you can and can't afford because if you agree to it, and down the line you can't do it, they basically have a judgement against you, and can garnish your wages for payment.  I would only settle for 20%, take it or leave it.  You can tell them if they choose to forclose, 1st creditor wouldn't even be paid off, it might suede them.

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it will list the debt, and tl will say "paid in settlement".  not any worse than having the default, it shows you made good.  If you have other creditors out there, it may tip them off that you will settle, and they may be likely to step up collection efforts, but hey, take them as they come. As far as getting credit, it looks better for you.

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They can foreclose, but the question is would they get anything if they did? If there is any equity after the 1 st is paid in full, they could get it. If you are upside down, it wouldn't be worth their time, and may be open to a lowball settlement.

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They can foreclose, but the question is would they get anything if they did? If there is any equity after the 1 st is paid in full, they could get it. If you are upside down, it wouldn't be worth their time, and may be open to a lowball settlement.

Thanks again.   The state just appraised our house and it is right in the range of what we owe on our first....give or take a few thousand.   I am assuming BOA sold this debt to this junk debt buyer...which is what I believe Realtime Resolutions is, because they did not think it was worth going into foreclosure? 

When I was trying to modify the loan BOA said its not as easy to modify the second as it is a first mortgage because of investors on the 2nd mortgage?  Not sure if that means anything?

 

Should I obtain a lawyer or work with Realtime on my own?

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You wont be able to modify the loan until the 2nd is paid off, or unless the people who hold title to the 2nd will agree. (they wont)  What you CAN do is possibly refinance the 1st and the 2nd into one loan.  Otherwise you are stuck with the current interest rate.  You might check into the difference in interest, it might be worth it.  You wont get as great of interest rate to do it that way though.  BUT if you did do it that way, you may be able to re modify the loan in a year or 2 at a better interest rate, so it may be worth it to you to get that monkey off your back.

 

I would say work with realtime on your own, see how it plays out.  If you do have any liquid assets, you might consider making them a settlement offer so they will release it for re modification.  Have them show you proof of assignment first, it would suck if they didn't own it. (they would send you the bill of sale)   

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I may have read that wrong, you are trying to modify the 2nd not first.  Check and see if you can totally refinance the 1st and 2nd.  I doubt they will want to remodify when they got all that interest coming.  I doubt anyone else would loan the money to pay it off.  If you refinance, you may be able to get a rate (I think the going is 3.2 right now for refi) which would be better than having the 2 loans as it is.  2.5 on re modification of the first, and 3.2-3.5 on refi when I last looked into it, but it could be different, and of coarse it depends on what your credit looks like.

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I am on hold with them now.   My first mortgage is in good standing with a 3.3 interest rate.  :)    My second is way behind and the interest is 9.9% 15 year balloon.  I owe 67k on it.   Gonna see if they take a low settlement.   I will start with a 5k settlement and see what they say.

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