make a deal with 2nd mortgage to lower amount owed


Posted by Michael on November 25, 2008 at 22:17:07:

Hi all thanks for looking,
I am 50 days late on my 1st Mortgage and also on my 2nd mortgage (equity line) plus credit cards. I am going to be filing bankruptcy (talked to a laywer already 2 months ago) but he said I need to wait about 3 months because I was pulling too much money out of my credit cards to pay bills before. (1 month more to wait.) I owe 130,000 on home, 56,000 on 2nd mortgage (equity line). The home in this market is probably worth 170-180,000 still would probably would take a few months to sell. I have it up for sale right now and the list is at 189,900. It has been for sale for about 5 months and not a single showing. So that should give you a idea that the house is worth 170-180,000 or even a lot less in this market.

What are the chances I can make a deal with the 2nd mortgage bank to drop the amount owed (56,000) to like 10-15k to be paid in full?

If I let it go into foreclosure the 2nd mortgage will probably get the 10-15k OR EVEN A LOT LESS after the first mortgage was paid off and real estate commissions etc..

I do not have the money to do this but my parents would borrow me the money to pay the second mortgage off. They will not give me the money to get caught up (don't ask) but they will not. They will only borrow me the money to pay off the 2nd mortgage like I said.

What do you think the chances are and how would I go about trying to do this?

Thanks


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