Posted on: 25th Nov, 2012 11:53 pm
Hi there… We declared Chapter 7 in 2010 but did not reaffirm either mortgage. And have kept current on our 1st and 2nd mortgages to this date. Right now, it is getting tight and the payment on the 2nd is drowning us and we need to do something... If we stop paying on the 2nd, will they foreclose or will we be able to negotiate a settlement down the road?
The lender will foreclose the property if you stop paying the mortgage. As you haven't reaffirmed the mortgage, the lender won't be ready for any kind of settlement.
Hi Guest!
Welcome to forums!
I agree with what Niicss has said. As you haven't reaffirmed the mortgage, you're not personally liable for paying the loan. In such a situation, if you stop paying the loan, the lender will simply foreclose the property. He won't give you an offer for settlement.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I agree with what Niicss has said. As you haven't reaffirmed the mortgage, you're not personally liable for paying the loan. In such a situation, if you stop paying the loan, the lender will simply foreclose the property. He won't give you an offer for settlement.
Feel free to ask if you've further queries.
Sussane