Posted on: 06th Oct, 2009 03:19 pm
Hi, I just posted this question on your blog. We went bankrupt and home into foreclosure. 2nd mortgage got discharged in B-ruptcy.Due to Obama initiative, 1st mortgage open to modification. Must we approach 2nd lender also? Can we modify and forget about 2nd mortgage? Is that possible?
You haven't mentioned the type of bankruptcy you had filed. I guess your bankruptcy has been discharged by the court. However, the lender still holds the lien on the property and can foreclose the property if you do not make the payments. In my opinion, you should contact your second lender and apply for a modification.
Thank for your reply. It was a chapter 7. Our home went into foreclosure, was set for sale. I called after the Obama incentive to possibly modify. 1st mortgage was open to it. Called 2nd mortgage. Said 2nd was discharged, what am I talking about. I said I might modify the 1st. 2nd told me to call their lawyer. What I was wondering - must I modify the 2nd WITH the first or can I just to the 1st and let the 2nd go. We are on SS now and funds are limited, though consistent. Hope this was clear. Thank you.
If your loans are with two different lenders, the you will have to contact both of them separately and modify the loans. As I have said earlier, the lender would still hold a lien on the property though your bankruptcy has been discharged. So, the lender may contact you for the mortgage dues. It's better to contact your lender and check out whether or not they would charge the dues from you.
Thanks, I'll do that.