2nd Mortgage wrote off

[kiheimer]

Unknown to me my second mortgage co wrote off my loan while I was in Chapter 13.
Seems I heared somewhere if this is done the loan can change from secured to
unsecured. Anyone heard of this?

[Carter]

Mine was converted to unsecured.

[kiheimer]

So if I was paying 68% to unsecured creditors: it would also be 68% to my
second mortgage? I was just discharged May 8th. Not knowing this might
have cost me $7,400.00 ? I guess not much can be done now.

[LadyInTheRed]

A 2nd mortgage becomes unsecured in a Chap 13 only if you petition for and receive a court order confirming that it is unsecured (commonly called a lien strip). If that didn't happen, the holder of the second mortgages still has a lien against your home and is a secured creditor.

The company writing the loan off on their books does not get rid of the lien.

[karm43]

Do you still own the house? If not it becomes unsecured.

[despritfreya]

OP is finished with the 13. I doubt there was a strip off. The lien will survive and when OP tries to sell or refi the property the lien will come back to haunt him/her.

Kiheimer, if there was no equity in your property after consideration of the 1st mortgage when you originally filed your attorney should have done the strip off. Find out if it was done.

Des.