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KJL LAW
KJL LAW, Arbitrator
Category: Real Estate Law
Satisfied Customers: 1201
Experience:  Attorney at Law Office of KJLLAW
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We filed chapter 7 which was discharged in sept 2012. Our

Customer Question

we filed chapter 7 which was discharged in sept 2012. Our first with wells fargo did a hamp modification and we have not been paying on suntrust second. We owe 90 on the first and 116 on the second. We reaffirmed the first but not the second. We have been saving to make an offer to the second of 30,000 in cash. Would we be awakening a sleeping giant by contacting them and asking ? We want to stay here and make things right with them. also the first just offered us a dodd frank of 5000 dollar reduction by next year, but I think there are some strings attached if we take it.
Submitted: 7 months ago.
Category: Real Estate Law
Expert:  KJL LAW replied 7 months ago.

First question, was the second discharged in the chapter 7?

Expert:  KJL LAW replied 7 months ago.

Hello and welcome to Just Answer. No attorney-client relationship or privilege is formed by speaking to an expert on this site, the answers are for general information. By continuing, you confirm that you understand and agree to these terms.

Since you file a Chapter 7, and if the second was not discharged, then the 2nd Mortgage or Heloc still remains as a lien on the property. The reason being is that you signed note promising to pay, and they have a deed of trust or trust deed on the house which is a lien on the house.

Sun Trust can foreclose the lien, but in order to do so it would have to be profitable to proceed with the foreclosure, which at this point it probably is not. Remember, the bankruptcy removed the first lender's right to sue you personally on the notes.

So you can legally, without worry of any recourse make a settlement on the outstanding balance, for a fraction of what is owed on the second. Once this happens, that will remove the lien from your property and legally remove the remaining balance.

With regards ***** ***** Dodd Frank of $5,000 dollar reduction promised. The Dodd Frank law does not have an specifics with regards ***** ***** specific reduction. Any reduction in loans such as yours, is purely discretionary by the Bank. Unless they gave you something specific in writing, I would not rely on the promised $5,000 reduction, because it may never materialize.

So you should negotiate a reduced payment with Sun Trust to remove the lien form your property, but don’t rely on the $5,000 proposal unless guarantied in writing.

It was a pleasure assisting you today, and I would appreciate if you would rate my service, so I will receive credit and payment for my work. After you rate the question you can ask follow up questions, and you will not be charged any additional money for the follow-up questions.

Expert:  KJL LAW replied 7 months ago.

If you have any other questions, just ask.

Expert:  KJL LAW replied 7 months ago.

If you have any other questions, just ask.

Expert:  KJL LAW replied 7 months ago.
If you have any other questions just ask.
Expert:  KJL LAW replied 7 months ago.

If you have any other questions just ask.

Expert:  KJL LAW replied 7 months ago.
If you have any other questions just ask.
Expert:  KJL LAW replied 7 months ago.

If you have any other questions just ask.

Customer: replied 6 months ago.
we owe 90 on the first and 106 on the second. Its value is about 180 if sold now. My husband offered them 30,000 the other day and they said they would take 85. It sounds to me they know they can get that if they were to foreclose right now. When can they foreclose? anytime? And how long do they have to wait till they can contact us? our creditors are not suppose to contact us for a period of time. I am wondering what that time frame is? Are they just playing with us? would they take a better offer or do they really only want 85, 000? It will take a while to come up with more ? Is there any other type of arrangement that can be made if we knew to ask it?
Expert:  KJL LAW replied 6 months ago.

The foreclosure process and time frame would depend on what state the property is located.

Expert:  KJL LAW replied 6 months ago.

If you have any other questions just ask.