In 2005 I declared chapter 7 bankruptcy, and I did not reaffirm my 2nd mortgage equity line of credit. My property is worth about $140, and I have $154 on the first, and $34 on the second, so there is not enough collateral to pay it.

I REALLY want to get rid of my place, so I am wondering if I could negotiate with the second directly, even before placing it on the market. I have not paid it in 4 months (at the advice of someone specializing in short sales), and because it was not reaffirmed when I declared bankruptcy almost 5 years ago, it shows as discharged on my credit report, so the late payments don't show. However, my bankruptcy lawyer said that they still have a lien on my property.

Should I try to contact their loss mitigation department (ex-wachovia, now countrywide) and try to negotiate this myself? I rather do this through a lawyer because I'm afraid that by my trying to negotiate there will be some technicality that will revive the account, or try somethig else to make me pay the whole amount. I am thinking of offering 10%

Thanks for any feedback!

I am sorry? What exactly are you going to negotiate, do you have money in a bank account to pay it off at a lower rate or something ?

If the house will not even sell for enough to pay the first in full, there will be nothing from a short sale to cover the 2nd.

So I guess what type of offer are you planning on making them.

As I said, I am willing to settle for up to 10%. Yes, I have some money on the bank now. I am not trying to do a short sale, I am just trying to get rid on the second.

I doubt it, esp since you are not selling the house, why should they all they may get now is a few 1000. If they wait for you to latter sell the house, the house value may go up and they get something if and when sold

But with that said, you can always try, today you never know what the banks may do