Settling 2nd Mortgage Lien Stripping case
Posted: Sun Aug 01, 2010 1:10 pm
Yes, I've done exactly that. Stip to settle, have creditor fe a new claim. Creditor will insist lien not stripped until discharge.
U
Sent from my iPhone
On Jul 30, 2010, at 11:44 AM, "Steven B. Lever" wrote:
I am covering new territory for my practice in that I have a contested
2nd mortgage ($125,000 owed) lien stripping that is scheduled for trial.
I'm gearing up for the "battle of the appraisers," but our valuation is
just a few thousand below the 1st mortgage balance, and I really don't
want to risk the winner take all. Our appraisal if $465,000 and they
are coming up with $550,000.
The 1st mortgage balance is $470,000. After cost of sale of 10% with a
foreclosure, (which is a modest percentage, coming to $55,000 even if
they were right on the sales price), there is only $25,000 in equity
they would get.
I'm thinking a possible settlement is to propose a loan modification to
a $25,000 principal amount they would get from foreclosure at the same
rate of interest as the current loan. They would then get that amount
plus about another $25,000 on the unsecured part of their claim in this
confirmed Chapter 13. Thus, this is twice the foreclosure yield to the
bank.
Has any of you accomplished something like this kind of settlement
before? Is there something I'm missing here? I know I'll need to get
the loan mod approval and modify the plan as well, but am I likely to
even get to that point?
Thank you -- Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
Yes, I've done exactly that. Stip to settle, have creditor fe a new claim. Creditor will insist lien not stripped until discharge.USent from my iPhoneOn Jul 30, 2010, at 11:44 AM, "Steven B. Lever" <sblever@leverlaw.com> wrote:
I am covering new territory for my practice in that I have a contested
2nd mortgage ($125,000 owed) lien stripping that is scheduled for trial.
I'm gearing up for the "battle of the appraisers," but our valuation is
just a few thousand below the 1st mortgage balance, and I really don't
want to risk the winner take all. Our appraisal if $465,000 and they
are coming up with $550,000.
The 1st mortgage balance is $470,000. After cost of sale of 10% with a
foreclosure, (which is a modest percentage, coming to $55,000 even if
they were right on the sales price), there is only $25,000 in equity
they would get.
I'm thinking a possible settlement is to propose a loan modification to
a $25,000 principal amount they would get from foreclosure at the same
rate of interest as the current loan. They would then get that amount
plus about another $25,000 on the unsecured part of their claim in this
confirmed Chapter 13. Thus, this is twice the foreclosure yield to the
bank.
Has any of you accomplished something like this kind of settlement
before? Is there something I'm missing here? I know I'll need to get
the loan mod approval and modify the plan as well, but am I likely to
even get to that point?
Thank you -- Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
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