Posted on: 21st May, 2010 01:28 pm
My husband and I filed a chapter 7 last year and included in the paperwork was our first and 2nd. However, we continued to try for a loan modification on our 1st and continued to make the payments on our 2nd. We did not sign any sort of reaffirmation agreement with the banks. However, after 1-1/2 years of trying for the loan modification we have decided to move on and rent. I just found out today though that it is possible for the 2nd to come back and sue of for the money. I thought that we were protected under the chapter 7 and could just walk away. So, now we are in trouble either way we go. We can't afford to keep our home and we will get sued if we leave or we can decide to leave and pay the 2nd on a house we no longer own. Any advice would be appreciated. I am really really freaking out right now.
Hi michellekrk,
You need to check out whether both your loans have been discharged under bankruptcy or not. If yes, then the lenders can foreclose your property but they won't be able to come after you for the payments. You will be able to walkaway from the property without any further obligation.
Thanks
You need to check out whether both your loans have been discharged under bankruptcy or not. If yes, then the lenders can foreclose your property but they won't be able to come after you for the payments. You will be able to walkaway from the property without any further obligation.
Thanks
Thank you for your reply. That was my understanding too but then yesterday I heard differently. I have been so stressed over this so I was so glad to see your reply. Thank you very much!