Posted on: 20th Apr, 2010 07:08 pm
I field chapter7 a year ago but did not reaffirm 2nd mortgage. 1st mortgage was modified. Current on 2nd mortgage, what now?? So my credit never reflects that I am paying on the 2nd? Is it possible to reaffirm a loan a year later? Can they decide to take my home even though I am current and have a 1st. Not sure what all this means.
hi yojo,
the second mortgage company will not take your home as long as you keep making the payments on time. since both the first and the second mortgages are secured, the lenders do have the right to foreclose your home even though your debts have been discharged through chapter 7. but if you are current on the loans, they would not be bothered to foreclose your property.
i don't think you can reaffirm the loan once your bankruptcy case has been closed. however, you may be able to reopen the case in order to reaffirm the second mortgage. consult your bankruptcy attorney to know if it is possible to reopen your bankruptcy case for the purpose of reaffirmation.
the second mortgage company will not take your home as long as you keep making the payments on time. since both the first and the second mortgages are secured, the lenders do have the right to foreclose your home even though your debts have been discharged through chapter 7. but if you are current on the loans, they would not be bothered to foreclose your property.
i don't think you can reaffirm the loan once your bankruptcy case has been closed. however, you may be able to reopen the case in order to reaffirm the second mortgage. consult your bankruptcy attorney to know if it is possible to reopen your bankruptcy case for the purpose of reaffirmation.
I've seen many cases where the mortgage ceases to be reported on the credit report after bankruptcy proceedings. This fact doesn't modify any legallity of the debt in question however.
It's similar to 3rd party or owner financing, the legal debt may still exist, it's only acknowledged through the deed of trust and the note. Check with your BK attorney.
It's similar to 3rd party or owner financing, the legal debt may still exist, it's only acknowledged through the deed of trust and the note. Check with your BK attorney.