Posted on: 13th Jan, 2010 04:48 pm
we filed ch. 7 bankruptcy last year and our mortgages were discharged in the bankruptcy along with credit card debt. what happens if we do not continue to pay the on the second mortgage? the value of the house is considerably less than the amount of both the first and second mortgages combined. since it was discharged, is the loan still secured? thank you!
Hi ssrector,
Did you reaffirm both the mortgage when you were in bankruptcy? If not then both the loans are not secured. If you signed the debt reaffirmation agreement, then you are liable for both the loans and both of them will be considered as secured.
Though your mortgage was discharged in bankruptcy, the second lender still holds the lien on it. If you stop paying, the lender has the rights to foreclose the property. In my opinion, you should speak to your second lender and check out if he can forgive the loan or reduce it so that you can pay it off.
Did you reaffirm both the mortgage when you were in bankruptcy? If not then both the loans are not secured. If you signed the debt reaffirmation agreement, then you are liable for both the loans and both of them will be considered as secured.
Though your mortgage was discharged in bankruptcy, the second lender still holds the lien on it. If you stop paying, the lender has the rights to foreclose the property. In my opinion, you should speak to your second lender and check out if he can forgive the loan or reduce it so that you can pay it off.
Thank you adonis for the reply. No, neither mortgage was reaffirmed. So, do we call the bank (Chase for the 2nd) and tell them we need a smaller payment, or ask them what they can do for us? Any wording you can relate so I am knowledgeable about what I am talking to them about would be great. Thanks again!! :)
Welcome back Guest,
You can definitely call up your bank and request for a smaller payment so that you can clear off the dues. As you haven't reaffirmed the debts, you can simply surrender the property to your lender who can foreclose it and recover the dues provided if you're not interested to save it. If you want to save the property, then, you need to pay off the loan.
You can definitely call up your bank and request for a smaller payment so that you can clear off the dues. As you haven't reaffirmed the debts, you can simply surrender the property to your lender who can foreclose it and recover the dues provided if you're not interested to save it. If you want to save the property, then, you need to pay off the loan.