So, I am currently awaiting my discharge (Oct 29 approx).
I pulled my credit reports to see how things are reporting. My primary mortgage lists as IIB, however my second mortgage does not. I have the same lender for both 1st and 2nd. I am keeping my home and am current on the 1st. I am not, however, current on the 2nd.
As of yesterday, I have reached a crazy cheap settlement with my lender on the 2nd. My attorney advised me that while it is ridiculously rare that they would ever foreclose on me due to a 2nd being in default and my home being undervlaued, it is however 'possible'. My lender was willing to settle te 2nd ($17,736 owed) for only $1,250. That's worth eliminating the "possible" thread of foreclosure. Mind you, OneWestBank is my lender for those who may have knowledge of their practices.
So, the real question is this. Should I submit a dispute to have the second mortgage show IIB......or......should I not worry about it and just settle the 2nd and have it recorded as settled. Would one have a better impact on my credit than the other?