SLS 2nd Mortgage CA

RudyM

LoanSafe Member
Aug 17, 2012
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Hello, I found this website very useful when my first mortgage with Nationstar was modified and I got a HAMP approval back in 2013. I did not pay the 2nd mortgage as my house was underwater. Now my house is above water and I have been trying to negotiate on my own but never gave them any of my financials. On 11/27 I received by mail a notice of intent to foreclose. Details below:

1st Mortgage Nationstar $463,000 hamp modification and it is current
2nd Mortgage SLS $116,000 stopped paying in 2009
Chpt 7 Bankruptcy in 2010 discharged but both banks still have a lien.
Zillow value approximately $613,000

SLS is asking for a payment of $82,000 to bring the account current by the end of December (Merry Christmas?) I would appreciate anyone's help on here on how to deal with them, but I see others on here who have not had good luck with SLS. Per MERS the investor for SLS is NY Bank of Mellon. Of course we would like to keep the house, but my question is whether the letter is just a scare tactic or should I start the countdown on a CA foreclosure. Any other advice would be greatly appreciated and I reside in San Diego, CA.

Thank you,
Rudy
 

Jzone

LoanSafe Member
Jun 20, 2017
176
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I dont know about California, but Im in similiar situation in Michigan. 1st and 2nd discharged in Chapter 7. Have kept paying on the first but not on the second. 2nd was sold/transferred to United Guaranty, basically a debt collector.

In Michigan, the 2nd mortgage can foreclose but must also pay off the 1st-so very unlikely. Also, because of bankruptcy in my situation, the second mortgage is trying to enforce a lien, not collect a debt. The debt has been discharged, but of course the lien remains.

The only real way the second mortgage can enforce their lien is when the house is sold. I am in no hurry to sell and always current on the 1st mortgage. I send them a settlement offer to release the lien once or twice a year and never hear back.

If you are current on the 1st, I would not worry about the 2nd starting foreclosure, but then again, Im in Michigan and not California, so I would check the law in your state.
 

RudyM

LoanSafe Member
Aug 17, 2012
14
0
1
I dont know about California, but Im in similiar situation in Michigan. 1st and 2nd discharged in Chapter 7. Have kept paying on the first but not on the second. 2nd was sold/transferred to United Guaranty, basically a debt collector.

In Michigan, the 2nd mortgage can foreclose but must also pay off the 1st-so very unlikely. Also, because of bankruptcy in my situation, the second mortgage is trying to enforce a lien, not collect a debt. The debt has been discharged, but of course the lien remains.

The only real way the second mortgage can enforce their lien is when the house is sold. I am in no hurry to sell and always current on the 1st mortgage. I send them a settlement offer to release the lien once or twice a year and never hear back.

If you are current on the 1st, I would not worry about the 2nd starting foreclosure, but then again, Im in Michigan and not California, so I would check the law in your state.
Appreciate your help and I will continue to look at the CA laws :)
 

bgriff

LoanSafe Member
Mar 11, 2012
164
16
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Look at the SOL as well, it's been almost 10 years since the discharge. Michigan is the exception in SOL as most states it's 5-10 years from the acceleration date. The acceleration date is key and may have happened without notice. You may need a lawyer.
 

RudyM

LoanSafe Member
Aug 17, 2012
14
0
1
Look at the SOL as well, it's been almost 10 years since the discharge. Michigan is the exception in SOL as most states it's 5-10 years from the acceleration date. The acceleration date is key and may have happened without notice. You may need a lawyer.
I’m not sure the SOL is applicable in CA. I hear they can renew the SOL. May 2020 is when chpt 7 bankruptcy was discharged.
I might need to consider chpt 13 bankruptcy to wipe out the the 2nd and 3rd though it’s not an option I prefer. Specialized Loan Services is notorious for not being upfront and honest with their debtors and I have tried to make arrangements with them but to no avail.
I will need to do more research and make an appointment with my lawyer who did the CHPT 7 for my initial bankruptcy.

Any advice on CHPT 13 bankruptcy in CA would be appreciated.
Thank you,
Rudy