AboutDick Dennis Expertise With more than 37 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter.
Experience Problem solving since 1980
Organizations National Association of Realtors
Publications Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers
Question Dennis,
First thank you very much on your help. I read you answers on 2nd mortgage and you already answered many of my questions.
The house cross the street was foreclosed on and sold for 635k and I currently owe 820k on my house. The total payment is almost 6000 and taking a toll on my finances.
The 1st mortgage balance is 607k and the 2nd balance is 213k (citimortgage). The 1st with Chevy Chase was adjusted in March 08 and my payment jumped from 3100 to 4500. I sent a loan modification request and after many calls and 4 months later they agree on enrolling me with a new program with 6.07% interest only which will reduce my payment by 600 not what I was hoping for; but it looks like this is best I can get from them right now. I never been late on my payment with them and that’s why it took them so long to get back to me.
The 2nd mortgage and here is the problem, I am paying 1600 per month and I have been trying to contact them for the last 4 months trying to get them to modify the loan. I even hired a lawyer who said he can help. So far he has the same results; no body is returning his calls and he is not probably very active on my issue.
I decided to stop paying my 2nd mortgage now, so probably they will start to contact me now. I can cash some of retirement pan to pay them off if they accept, than I will have my 1st to worry about and I think I will be able to manage my 1st.
My questions:
* What are the steps and the sequence of events; once I stop paying the 2nd the bank will take and how I should react to each step/event?
* How to approach them with the proposal that I can get my brother or I can cash my 401 to pay them off or I can convert the 2nd to personal loan off course t a much lower amount. And how much should I offer; is there a rule of thumb in these cases?
* How it will appear on my credit report if the 2nd and I reach an agreement?
Any other tip or advice is really appreciated. I do have plenty of credit cards to pay and I do not know how long I can go along paying the 2nd.
Thanks again for all your help.
--Dean
Answer Very simple, Dean. Just stop making any payments whatsoever. You'll be able to live there for at least six months with no mortgage payments. Maybe longer. That's money in your pocket. Yes, it may affect your credit, but if you're going to stop the second, you may as well stop the first, too. The reason why you get no response for the first is because they know that any notice of a foreclosure will force the second to start making payments. But if you stop making payments on the second, you may as well stop them ALL! The banks are thieves. Remember that. To illustrate. Today the goverment lowered the interest rate TO THE BANKS. The banks are not going to allow borrowers to get loans at a lower rate. They WILL NOT allow the public to borrow at a lower rate. They will use that lower rate from the government to pay off their own bills. THIEVES. I wish you well.
