I continue to be frustrated by JA's system which I don't believe works correctly. Anyway...Our Chapter 7 no asset bankruptcy has now been discharged, so we are no longer liable for our previous debts. However we still have 1st and 2nd mortgage liens on our home. The value of our home now is about 50% of the 1st mortgage balance, so the 2nd mortgage (lien) is worthless to that creditor. The original 2nd mortgage loan was $40,000 which we haven't paid in 2+ years...so my main question is what is the value of this lien if we decided to offer a settlement to get rid of it...the original $40,000 or also accrued interest and other fees etc. etc. Your thoughts?
State/Country relating to question: Massachusetts
Hi JACustomer,I have read about mortgage lenders who have accepted as little as $5,000 to remove a lien for a mortgage with a $40,000 balance (it is not necessary to include interest and other fees) when that mortgage was completely unsecured (the market value of the home was considerably less than the balance of the first mortgage). So, it would make sense to start with an offer of $5,000 to remove the second mortgage lien. I think this is what you wanted to know. If not, please let me know. Thank you.
Areas of practice: Landlord/Tenant, Bankruptcy, Consumer Debt
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