Posted on: 13th Apr, 2012 12:47 pm
My husband and I have a 1st and 2nd Mortgage on our home. The 1st mortgage was in his name alone and the 2nd Mortgage was in my name alone. We filed chapter 7 and didnot affirm the house. We are still living in the house and paying the mortgage. However, I checked my credit report and the 2nd mortgage was discharge on my credit report. The bank no longer sends me a bill. Do I have to pay the 2nd mortgage back?
Welcome tracyd,
You're not liable for paying the mortgage personally as you haven't reaffirmed the mortgage. Both of you can stop paying the mortgage and surrender the property to the lender. He will foreclose the property and recover his money from the sale of the property.
You're not liable for paying the mortgage personally as you haven't reaffirmed the mortgage. Both of you can stop paying the mortgage and surrender the property to the lender. He will foreclose the property and recover his money from the sale of the property.
The position of the the mortgage - which is virtually always determined by who recorded their lien first - determines the order of who gets paid the money received by the successful bidder at the foreclosure auction.
A 2nd mortgage foreclosure sale event does not directly affect the 1st which remains a lien against the real estate.
:idea:
A 2nd mortgage foreclosure sale event does not directly affect the 1st which remains a lien against the real estate.
:idea:
