In another thread, someone mentioned that it would be unlikely that a 2nd mortgage company (in my case, Ditech) would foreclose on a home when there is little equity in the house even for the 1st mortgage.
So I have a question. If we were to file Chapter 7 and continue paying on the 1st mortgage, but did not pay on the 2nd mortgage (it was one of those 125% loans), wouldn't they then be likely to try to foreclose? Actually, they'd still not get anything out of the house anyway, at least at this point.
So then the next question is, would they ever then seek foreclosure? I mean, at some point if we continued to pay on the 1st, we might build up equity that would make it worth their forclosure. Can the non-payment of that 2nd mortgage then show up on our credit report & score, or, as I've seen some posts here say, would it simply say "included in bankruptcy."
I hope this post makes sense. I know I must be missing something here. Otherwise, wouldn't everyone stop paying on their 2nd mortgage after bankruptcy?
Rick
So I have a question. If we were to file Chapter 7 and continue paying on the 1st mortgage, but did not pay on the 2nd mortgage (it was one of those 125% loans), wouldn't they then be likely to try to foreclose? Actually, they'd still not get anything out of the house anyway, at least at this point.
So then the next question is, would they ever then seek foreclosure? I mean, at some point if we continued to pay on the 1st, we might build up equity that would make it worth their forclosure. Can the non-payment of that 2nd mortgage then show up on our credit report & score, or, as I've seen some posts here say, would it simply say "included in bankruptcy."
I hope this post makes sense. I know I must be missing something here. Otherwise, wouldn't everyone stop paying on their 2nd mortgage after bankruptcy?
Rick
But you're right. I'm not saying I would have done that, though. But all these scenarios are running through my head these days. I just don't know what I'd do if I hadn't found this forum!!
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