Posted on: 06th Feb, 2010 05:12 am
I am in the middle of modification with 1st mortgage and things are going smoothly, my 2nd mortgage (Chase) i had a modification all set up and things were going smoothly when I had to file bankruptcy on my cc cards and that kicked my out, they are now saying they will charge me twice as much and i can not afford that and are saying they will proceed with foreclosure. The house is worth about 230,000 and I owe 98,000 on the first and 110,000 on the second. I have tried to sell the home twice and almost sold it, and will try again, in the mean time I am trying to make home improvements for when i do sell it and hopefully brake about even. Please advise!!!!!!!
What type of bankruptcy did you file? If you filed for Chapter 7, then the court will issue an automatic stay on your creditors and they won't be able to sue you for your debts. You can reaffirm your debts and start paying off the loan. This will help you in saving your property. If you do not reaffirm the debts, then you can surrender the property to the lender who will foreclose it and recover his dues.
Thats kind of a tricky one, you have a bigger 2nd than you do the first. Your 2nd could in fact payoff the 1st and foreclose. You need to get on the phone with chase everyday and speak to managers to figure out a solution. you may want to hire a professional to assist you in this matter.