Sued by 2nd Mortgage today

[ELBKnow]

Hi. We got a letter that were being sued by our 2nd mortgage today. It looks like the court date is in May. We are filing in March. Should I tell them my plan?

[justbroke]

I they suing your for foreclosure, or just suing you for the loan amount? What are you intentions with the property? Are you looking to lien strip?

[ELBKnow]

They charged it off and are now suing for the amount owed. Can my BK lawyer respond to the summons for me?

[justbroke]

Your BK lawyer can deal with it. The question is still what is your intent with the property that secures the debt? Are you going to lien strip it in your Chapter 13?

[ELBKnow]

Yeah. I like this house

[Carter]

I surrendered my house and the 2nd trust sued me for the money which I pay in my chapter 13. Should I have to pay this back when it was secured by the house and the house got foreclosed on? Does anyone know if I can claim the 2nd trust payments on my taxes?

[car67]

You havnt filed and they already charged it off with no foreclosure attempt?

[ELBKnow]

Yeah. I have no equity. I was almost $100K upside down. The first would try and foreclose. But the 2nd saw it better to charge it off.

[justbroke]

Does anyone know if I can claim the 2nd trust payments on my taxes?

Not if you're only paying principal.

The reason is, that payments in a Chapter 13 on a "stripped" or charged off 2nd mortgage... are unsecured payments on the principal. Principal payments are not tax deductible, only interest payments are.