Question about selling a house after discharge

[graciemae]

Hi, I've been reading for months and have gotten a lot of great info from this forum.....thanks for that! We filed a 13 back in 12/04, we have learned a lot about budgeting and living within our means the last 4 1/2 years. It's been a LONG road but we only have 4 months/8 payments left...YAH!! We are so close and it feels so great to see the light at the end of the tunnel! We are looking forward to being able to sell our home and move into a bigger one (We have 5 kids so that's 7 people living in 1200 sq.ft) in about 12-15 months, well after discharge; but I wasn't sure how the lien from the second mortgage works........we pay it in our plan but after our plan is done do they release their lien on the property automatically or do we have to do something? We have been paying our 1st mortgage outside of the plan if that makes a difference?
Thanks in advance....

N~

[justbroke]

we pay it in our plan but after our plan is done do they release their lien on the property automatically or do we have to do something? We have been paying our 1st mortgage outside of the plan if that makes a difference?

Did your lawyer actually do a lien strip? That is, did your lawyer file and have granted a Motion to Determine Secured Status and Avoid Lien?

If not, the second lien doesn't just magically go away. it is still in force and the lien still valid at the discharge ofy our case.

[graciemae]

We are paying the 2nd in our plan...it will be paid off, is that the same as being stripped? I thought that after we paid it would be as if they no longer hold any rights against the property......just our 1st mortgage holder would? Am I right? Maybe I'm using the word 'lien' incorrectly?

[falken]

We are paying the 2nd in our plan...it will be paid off, is that the same as being stripped? I thought that after we paid it would be as if they no longer hold any rights against the property......just our 1st mortgage holder would? Am I right? Maybe I'm using the word 'lien' incorrectly?

If it will be payed off 100% in the plan, then yes, they would release the lien. Basically if the remaining term of the 2nd is equal to or less than the time frame of your plan it will be paid off and you will just have the 1st to deal with.

[justbroke]

We are paying the 2nd in our plan...it will be paid off, is that the same as being stripped? I thought that after we paid it would be as if they no longer hold any rights against the property......just our 1st mortgage holder would? Am I right? Maybe I'm using the word 'lien' incorrectly?

No, it's not the same as being stripped. You are using lien correctly. If your 2nd mortgage is being completely paid in your plan, then you should get a release/satisfaction of mortgage after the last payment. (It may take a few weeks to have that "recorded".)

Sorry for any confusion.

[graciemae]

Thanks.....

[StartingOver08]

Thanks.....

Make sure to follow up with the second lien holder that in fact they will issue a satisfaction and record it.

It is to your benefit to follow up on this, in fact, you may want to contact the 2nd to find out the exact proceedure and the timeline so they do not forget to issue the satisfaction, even if you have to record it yourselves!

[graciemae]

Ok, after reading the posts I dug through our paperwork to see if I could find wording to reassure me.........I found that my 2nd mortgage is indeed being paid 100% and they are required to release the lien on my property upon discharge of the debt.......and I also found out that we had a 3rd mortgage (forgotten about this one) that is being 'stripped' and they are being treated as an unsecured creditor; they are also being required to release the lien upon discharge although they did file a motion at some point to argue their case but if I understand what I read correctly the appraisal wasn't high enough to support their claim. Thanks for the explanantions, it helped to hear it here as well as read it in our paperwork......atleast I know I was understanding what I read correctly!