What can we do to get another loan modification? 18 Answers as of January 09, 2012

I have not paid my second mortgage in 2 years and we are upside down. Our first mortgage is working on doing a loan mod the third time but they say we make to much money. We are upside down but we do not want to lose our home. What can we do?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You need to see a ch13 lawyer about "stripping off" that second mortgage. That can be done when the value of the house is less than the amount of the first mortgage.
Answer Applies to: California
Replied: 1/9/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You may want to talk to an attorney about filing a chapter 13 bankruptcy which may be able to strip your 2nd mortgage altogether.
Answer Applies to: New York
Replied: 1/5/2012
Heupel Law
Heupel Law | Kevin Heupel
You should consider filing a Chapter 13 bankruptcy as it is a way to remove a second mortgage on an underwater home.
Answer Applies to: Colorado
Replied: 1/4/2012
Law Office of Christine A. Wilton
Law Office of Christine A. Wilton | Christine Wilton
There is no law that requires the lender give you a loan modification, let alone a third one as you are now asking for. The bottom line is that if you want to keep your home, you must continue to make your mortgage payments, property tax payments and maintain homeowners insurance.
Answer Applies to: California
Replied: 1/4/2012
Mazyar Hedayat and Associates
Mazyar Hedayat and Associates | Mazyar Malek Hedayat
There are too many aspects to your question to cover them all here; however, the short answer to your quest is this: If attempts at modification have failed you should consider a Chapter 13 Bankruptcy. Chapter 13 permits you to repay debts such as delinquent mortgage installments over as many as 5 years, without interest. In addition, in a Chapter 13 case you can often remove your second mortgage lien entirely via a so-called *lien strip *action. Contact a knowledge bankruptcy Attorney to find out how to file and take advantage of the lien strip feature of Bankruptcy.
Answer Applies to: Illinois
Replied: 1/4/2012
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    When your house is upside down, you may be able to eliminate your junior (second) mortgage in a case under Chapter 13 of the Bankruptcy Code. Please note that Chapter 7 does NOT eliminate the lien that makes your house the collateral for the second loan; so, you must eliminate it in a chapter 13 (or 11) case or the holder of the loan will continue to have the power to foreclose years later (at a time when the balance of the second will have grown through the accumulation of unpaid interest).
    Answer Applies to: California
    Replied: 1/4/2012
    Grace Law Offices of John F Geraghty Jr.
    Grace Law Offices of John F Geraghty Jr. | John F. Geraghty, Jr.
    Try a straight re finance
    Answer Applies to: Georgia
    Replied: 1/4/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    There is nothing you can do but keep applying for loan modifications. If the bank gives notice of trustee's sale then you might consider filing a Chapter 13 case to stop the foreclosure and maybe apply again or contest the denial of the loan modification possibly. In the Chapter 13 you might be able to strip off the lien for the second mortgage so you will end up just owing the first and hopefully with better terms after getting a loan modification. You should consult with a bankruptcy attorney so that you are ready to file the bankruptcy case if necessary and prevent the bank from foreclosing. I believe that the banks take your loan modification application more seriously if you are in bankruptcy so if you have already tried and failed maybe doing it while in a bankruptcy case may improve your chances of getting it. You also need a professional to help yo with the loan modification. It is not just filling out an application. How it is filled out and documented is very important to getting approval, particularly in cases like yours where the income may appear not to be sufficient to qualify.
    Answer Applies to: California
    Replied: 1/3/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You could file a chapter 13 bankruptcy. This could help you get rid off the 2nd mortgage altogether. It will not help modify the loans but will help you remove the second from the house. You could do this after the 1st is modified.
    Answer Applies to: California
    Replied: 1/3/2012
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    You could file a Chapter 13 bankruptcy, strip the lien of the 2nd (since it is entirely unsecured at this point). Then, depending on your income and the other debts you have you would make payments over a 3 or 5 year period to discharge all the unsecured debt, leaving you with just your 1st mortgage.
    Answer Applies to: California
    Replied: 1/3/2012
    Law Offices of Michael B. Fisher | Michael Fisher
    You should look into the possibility of a Chapter 13 bankruptcy. First, if your first mortgage exceeds the value of the property you should be able to engage in "lien stripping" whereby the junior or second mortgage is discharged in full and you are no longer obligated to pay this loan. Second, even if your first mortgage does not exceed the value of the property, it is still possible to propose a plan to repay the arrears you have accumulated over a period of time ranging from 36 to 60 months. Thus, if you are behind $6,000 on your second mortgage, you could propose a plan whereby you pay the first and second mortgage as normal and then pay an extra $100 per month to catch up on the second mortgage arrears over 60 months (plus some extra for attorney fees and trustee fees).
    Answer Applies to: New Hampshire
    Replied: 1/3/2012
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    The second mortgage lender may be fully unsecured. In this case, chapter 13 can "strip" the lien. A drastically undersecured second mortgage lender frequently will make a deal with you.
    Answer Applies to: Illinois
    Replied: 1/3/2012
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    All you can do is try and hold on, you can only file a Ch 13 bankruptcy to save your house if you can make the mortgage payment as is, plus extra for the trustee, attorney fees, and something for the unsecured creditors. You might be able to file a bankruptcy and get rid of your unsecured creditors if that is the reason you "make too much money" but still can't afford your house payment. Many bankruptcy attorneys offer free consultations, make an appointment with one and see what they can offer you as an alternative to losing your home.
    Answer Applies to: Michigan
    Replied: 1/3/2012
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    You may wish to consider filing for Chapter 13 bankruptcy, as that may allow to to "strip-off" the second loan. I strongly suggest using an attorney if you are considering filing for Chapter 13 bankruptcy, however.
    Answer Applies to: California
    Replied: 1/3/2012
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Through a chapter 13 bankruptcy, you can eliminate your second mortgage completely if your house is underwater - if your house is worth less than what you owe to the first mortgagee, and all your unsecured debts. If you do not wish to seek relief under bankruptcy, you can request modification of your second mortgage, however, since you're having problem with the modification of first mortgage, I highly doubt they will approve it for the second.
    Answer Applies to: Florida
    Replied: 1/3/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It is possible that you could file a Chapter 13 bankruptcy and strip (remove) the second mortgage. This requires a very experienced lawyer if you are eligible to do it.
    Answer Applies to: Georgia
    Replied: 1/3/2012
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    You might qualify to file a chapter 7 and walk away.
    Answer Applies to: Georgia
    Replied: 1/3/2012
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