Posted on: 08th Oct, 2009 08:52 am
We filed chap 13 and reorganized all other debts. We were not able to include our 2nd mortgage in our chap 13. If we choose to not pay our 2nd mortgage what affect would that have on our Chap 13 filing? We are completely upside down. We owe 412,000 on our first and 70,000 on the 2nd yet our home only appraises for 333,000.
The second lender may foreclose on the property, if they do nto get paid
hi kimbarrs,
if you do not pay the second mortgage dues, the second lender would foreclose the property. you can speak to your second mortgage lender and check out if you can get a loan modification. this will help you in lowering your interest rate. once your interest rate has been reduced, it will help you in lowering your monthly payments. thus, it would help you in making your loan payment affordable.
thanks
if you do not pay the second mortgage dues, the second lender would foreclose the property. you can speak to your second mortgage lender and check out if you can get a loan modification. this will help you in lowering your interest rate. once your interest rate has been reduced, it will help you in lowering your monthly payments. thus, it would help you in making your loan payment affordable.
thanks
Thanks my question wasn't so much what the 2nd will do, they won't foreclose because they wiill get nothing if they foreclose except attorney fees that they would have to advance. WE ARE UPSIDE DOWN ON THE HOUSE. When a 2nd lender forecloses all proceeds from the sale will go to the First lien holder. In my case there is nothing left to go to the 2nd lien holder, there wouldn't even be enought to pay the first. My question really isn't what will the 2nd lien holder do its more of how will it affect how much I'm paying in my chapter 13 BK. Thanks for trying to help though :)
Welcome back kimbarrs,
Chapter 13 bankruptcy is all about reorganizing your debts. In this case, you won't have to surrender your property. Rather, you will get a payment plan from the lender which will help you in paying off the debts within 3-5 years. If your second lien is stripped off, then you won't be responsible for the second mortgage payments.
Chapter 13 bankruptcy is all about reorganizing your debts. In this case, you won't have to surrender your property. Rather, you will get a payment plan from the lender which will help you in paying off the debts within 3-5 years. If your second lien is stripped off, then you won't be responsible for the second mortgage payments.