Posted on: 01st Jul, 2011 07:25 pm
my bankruptcy chapter 7 was discharged about 9 months ago and i have been paying my 1st and reluctantly paying my 2nd mortgage. our first mortgage company offered us a loan modification that changed my current loan to a fixed rate but would increase my payment by $350 per month which i cannot not afford so i turned it down. we did not reaffirm our mortgage loan because a combination of both are first and second mortgage exceeds the value of my home. am i able to stop paying my second based on the negative value of my home and the fact that i had a chapter 7 discharge or can they still sue me for payment?
Hi Ruby,
As you haven't reaffirmed your mortgage, you're not personally liable for the mortgage payments. However, if you stop paying the second loan, the lender may foreclose the property in order to recover as much dues as possible.
As you haven't reaffirmed your mortgage, you're not personally liable for the mortgage payments. However, if you stop paying the second loan, the lender may foreclose the property in order to recover as much dues as possible.