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value under water

Posted on: 10th Jun, 2010 02:32 pm
I am going thru a BK right now, my attorney had me file a chapter 7, wanted 13 but oh well, my question is i have a first and a second, the first mortgage is now worth more than the recent evaluation of the property, I love my house, but I'm scared to re affirm, if I have to sell for some reason, not only will the first mortgage be at a substantial loss, but the second is sure to be completely hosed, how can I remain with out substantial risk, I have a great job, I'm well paid, but I seriously need advice on this.
hi dyos!

welcome to forums!

if you do not reaffirm your mortgage, then you are not personally liable for paying off the dues. also, there are high chances that the lender will foreclose the property and you will lose it. however, if you reaffirm the loan, then you would be liable for the mortgage payments. if you make the payments on time, you'll be able to save the property. as far as your second mortgage is concerned, you can try and get that discharged in your bankruptcy filing.

feel free to ask if you've further queries.

sussane
Posted on: 10th Jun, 2010 08:26 pm
Will the second let me discharge in a Chapter 7, I thought that would only happen in a 13?
I will be more than happy to continue paying the first, its a slight risk, but I think its worth it.
Posted on: 11th Jun, 2010 09:11 am
Hi mark,

Your bankruptcy attorney will be the best to let you know whether or not you would be able to discharge your second mortgage. If you had filed Chapter 13, then you could have stripped off the lien if there would have been no equity in your property.
Posted on: 13th Jun, 2010 10:49 pm
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