Posted on: 17th Oct, 2010 04:17 pm
I’ve recently filed Ch7 BK, attended the 341 meeting and signed two reaffirmation agreements. These were for my 1st & 2nd mortgage. Each different lenders.
My 1st mort is at $153k, the 2nd is around $26k. My home value is upside down, a neighboring house of the same floor plan and lot size recently sold for $91k.
My question(s):
a) Is it too late or can I add only the 2nd mort to the Ch7? It not yet discharged.
b) If I stop paying the 2nd, what can they do? Would it likely be a charge off then sold to a collection agency?
There’s no way for them (2nd lien holder) to get anything from the deal since the 1st mortgage holder couldn’t even short sell for the loan amount.
Any input from knowledgeable folks would be very much appreciated.
My 1st mort is at $153k, the 2nd is around $26k. My home value is upside down, a neighboring house of the same floor plan and lot size recently sold for $91k.
My question(s):
a) Is it too late or can I add only the 2nd mort to the Ch7? It not yet discharged.
b) If I stop paying the 2nd, what can they do? Would it likely be a charge off then sold to a collection agency?
There’s no way for them (2nd lien holder) to get anything from the deal since the 1st mortgage holder couldn’t even short sell for the loan amount.
Any input from knowledgeable folks would be very much appreciated.
Welcome jemitche,
You have mentioned that you've included both the mortgage in your bankruptcy filing. In that case, you won't have to include it separately. As you've already included the mortgage in your bankruptcy, the lender won't take any actions against you if you stop the payments. The lender can take any actions against you once your bankruptcy filing is discharged.
You have mentioned that you've included both the mortgage in your bankruptcy filing. In that case, you won't have to include it separately. As you've already included the mortgage in your bankruptcy, the lender won't take any actions against you if you stop the payments. The lender can take any actions against you once your bankruptcy filing is discharged.
Hello adonis
Thank you for the reply. Perhaps my first post wasn't clear.
I did not include the 1st or 2nd mortgage in the BK. I simply signed reaffirmation agreements. However, I think I may have been misguided and now feel that I should have included them in the BK. My questions is, can I include the 2nd, but not the 1st?
Thanks
Thank you for the reply. Perhaps my first post wasn't clear.
I did not include the 1st or 2nd mortgage in the BK. I simply signed reaffirmation agreements. However, I think I may have been misguided and now feel that I should have included them in the BK. My questions is, can I include the 2nd, but not the 1st?
Thanks