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  1. #1

    DOJ mod on B of A 1st mortgage, will Chase extinguish 2nd?

    I am currently in the trial payment period for a DOJ modification with B of A. If all goes as planned, the principal balance on my first mortgage will be reduced to today's value. The second mortgage on the property is with Chase and has not been paid for over 2 years. The balance is $115,000.00. I have read the DOJ consent judgement for Chase, and under the Consumer Relief Requirements section, page D-5, section 2a states the following:

    2. If a Participating Servicer has completed a successful proprietary first lien modification and the second lien loan amount is greater than $5,000 UPB and the current monthly payment is greater than $100, then:
    a. Servicer shall extinguish and receive credit in accordance with Table 1, Section 2.iii on any second lien that is greater than 180 days delinquent.

  2. #2
    I take this to mean that once the modification on the first mortgage is completed, Chase should extinguish the second loan. Am I understanding this correctly?

    I have seen several threads here where people have received unsolicited letters from Chase extinguishing their second loans. I have not been so fortunate thus far, and am trying to figure out what is going to happen once the modification is completed. Has anyone received an extinguishment of their second mortgage AFTER the first mortgage was modified under the DOJ settlement?

  3. #3
    I modified with WF a couple of years ago. My second is with Chase and haven't paid for 3 years. They offered $25k settlement off on $97k second, but that loan is only underwater by $30k. They have made no mention of the DOJ. Now they want financials to consider my counter offer of $14k.

  4. #4
    I know there are certain guidelines they have to follow in order to receive credit for extinguishing second liens, but the wording in the consent judgement just doesn't make it clear when a loan will be extinguished under this settlement. Perhaps I am interpreting incorrectly.

  5. #5
    Guidelines? So do they have ​to get financials in order to receive credit?


 

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