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Bankruptcy, can't short sell and have 2 mortgages

Posted on: 04th Jun, 2013 10:09 am
hello all, first time poster here, so i'll try to be as succint as possible. separated from my wife in feb 2009, and moved out of home. 2 mortgages (1st- $223,000, 2nd- $140,000), current estimated value now $185,000. mortgage payments stopped in may 2009, filed chapter 7 bankruptcy in september 2009, and discharged 2 months later. estranged wife and kids stayed in home until jan. 2013, during which time house was listed for short sale (originally march 2012). is now vacant and sustained some plumbing damage (burst pipes, some minor exterior damage from sandy). received one offer of $150,000 which was denied by 1st and 2nd banks. i'm starting to think that i would like to move back into home, as it seems like such a waste, but i cannot afford both mortages even with a modification. is there any way of modifying 1st mortgage and eliminating 2nd? i know this sounds crazy, but is there such a program?
hi bobby,

as far as i know, in chapter 7, you won't be able to eliminate your second mortgage. you may modify your loan provided you have reaffirmed the mortgage when you were in bankruptcy.

thanks
Posted on: 04th Jun, 2013 07:49 pm
Hi bobby!

Welcome to the forums!

James is right. If you would have filed Chapter 13, then you could have stripped off your second mortgage.

Feel free to ask if you've further queries.

Sussane
Posted on: 05th Jun, 2013 09:39 pm
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