Posted on: 19th Sep, 2009 12:33 am
I have heard that if the 2nd mortgage company did not file a deed of trust with the recorder's office I can have the loan dismissed in CH 7. I need to know if this is true, and if so, what RCW or Title 11 code I need to reference in my paperwork.
You will need to consult a attorny for thsi matter
i think there are several ways you can get out of a 2nd mortgage. 1st, if the loan was done by an institutional lender, then you can check the Reg Z disclosure for errors that could unwind the whole deal. Whether or not a loan is a 2nd mortgage or not, it can be included in a bankruptcy filing. The difference is whether or not the lender can still tie up your property. If there is not a deed of trust, then they are effectively an unsecured creditor like a credit card. However, an unrecorded deed of trust is not necessarily invalid, and could be recorded at a later date.