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Can I use my chapter 7 bankruptcy to negotiate with my second mortgage holder?

Posted on: 16th Jul, 2010 12:17 pm
i have a first mortgage balance of $154,000 and a second mortgage of $25,000. i filed chapter 7 bankruptcy and it was discharged in june 2010. i have not signed any paperwork reaffirming either mortgage. my first mortgage has been permanently modified under the hamp program, but my second mortgage holder refuses to modify. both mortgages were listed as included in the bankruptcy and reflect a zero balance on my credit report. i am current on both mortgages. i want to keep my home, if i default on the second and they foreclose, they wont see a dime because my property value has decreased. ( value is now 147,000 ) and if it was included in the bankruptcy, i am not sure if they can come after me for the outstanding loan amount? can i use this to negotiate a modification? is there any case law?
Hi prr4me,

As your mortgage was included in your bankruptcy filing and you haven't reaffirmed your mortgages, the lender won't be able to come after you for the balance dues if he forecloses the property. You can definitely contact your second lender and negotiate with him for a modification. However, I won't be able to let you know about any case law in this regard.

Thanks
Posted on: 16th Jul, 2010 09:34 pm
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