2nd Mortgage Government %

[Doublecredit]

What is the name of your state (only U.S. law)? NH
Good Evening,
So I know that your 1st Mortgage cannot be over 31% of your Gross Income as a part of the HAMP Government. What is the rule on 2nd Mortgages?
I have a 1st Mortgage and I'm working on a Trial Modification to adjust my loan.
I have a 2nd Mortgage and I want to work with them, but they are not a very "workable" provider.
Chapter 13 is becoming an option as my house value is below my 1st Mortgage and I know that there is a potential the 2nd Mortgage can be waived as unsecured debt if I were to file.
However, this company is very persistant with their hinting threats at foreclosure even after 1 late payment. Which I know is more threat based, as it would make no sense business wise to payoff my first mortgage (say $220k) to collect on a 2nd mortgage (say $60k), when the home value may be worth $180k. This would be a loss of around $100k as I estimate. I don't think they'd want to do that.
So how do I get them off my back? Is there a Government % I can throw in their face or should I just go for Chapter 13 and bite the bullet on this one? Any thoughts??
Thanks in Advance!

 

[nextwife]

If the second is not a Fannie, Freddie, HUD loan, they may not be obligated to agree to any particular percent. The loans I deal with were never bought or sold through the secondary market, and that lender is not at all obligated to comply with HAMP, for example.

 

[HomeGuru]

What is the name of your state (only U.S. law)? NH
Good Evening,
So I know that your 1st Mortgage cannot be over 31% of your Gross Income as a part of the HAMP Government. What is the rule on 2nd Mortgages?
I have a 1st Mortgage and I'm working on a Trial Modification to adjust my loan.
I have a 2nd Mortgage and I want to work with them, but they are not a very "workable" provider.
Chapter 13 is becoming an option as my house value is below my 1st Mortgage and I know that there is a potential the 2nd Mortgage can be waived as unsecured debt if I were to file.
However, this company is very persistant with their hinting threats at foreclosure even after 1 late payment. Which I know is more threat based, as it would make no sense business wise to payoff my first mortgage (say $220k) to collect on a 2nd mortgage (say $60k), when the home value may be worth $180k. This would be a loss of around $100k as I estimate. I don't think they'd want to do that.
So how do I get them off my back? Is there a Government % I can throw in their face or should I just go for Chapter 13 and bite the bullet on this one? Any thoughts??
Thanks in Advance!

**A: there is no law requiring a % and even if you file BK13, they will still be on your back as you would still owe them the $$$. You would need to file BK 7 to be in a better position. If you make your payments then the first will not be affected. Otherwise you may be out of a house.

 

[Doublecredit]

My first mortgage is OK and I'm working with them...

no issues on the 1st mortgage - they are willing to work with and help me.
The 2nd mortgage folks - not so much.
I read an article online from an atty that said Chapter 13 is the way to go, but the caveat is in 20 years the 2nd mortgage can come back to haunt you via bottom feeders (aka debt collectors).

So as long as my 1st mortgage is good, the 2nd mortgage "can't foreclose" or "won't foreclose" as they'd lose money?

 

[HomeGuru]

no issues on the 1st mortgage - they are willing to work with and help me.
The 2nd mortgage folks - not so much.
I read an article online from an atty that said Chapter 13 is the way to go, but the caveat is in 20 years the 2nd mortgage can come back to haunt you via bottom feeders (aka debt collectors).

So as long as my 1st mortgage is good, the 2nd mortgage "can't foreclose" or "won't foreclose" as they'd lose money?

**A: the 2nd has a right to foreclose but may not due to the upside down situation.

 

[nextwife]

**A: the 2nd has a right to foreclose but may not due to the upside down situation.

May not NOW, but they will be periodically re evaluating their position. Once they feel the value supports some recovery, even if only a portion, they may then foreclose.

Even if they don't, they can demand their full payoff when it's sold someday.