2 questions about getting discharge and right after

[blaze]

Yesterday was our last day for creditor objections in our BK 7- Our attny says in our district most people get their discharge within a week - I am not holding my breath - But it is good that nothing shows up on Pacer as of today right? My questions
1-if nothing is on pacer since the trustees declaration of no asset a week or so ago- like objections, trustee's motion to extend etc... then can we feel confident we'll get our discharge and not worry any more - or could something still go wrong?
2- We have a 2nd mortgage that we did not reaffirm - they still have a lien on the house but our responsibility to pay the debt is discharged the way I understand it. We plan to keep making payments b/c we know eventually if we ever sell the house we'll have to satisfy that debt to remove the lien. But here is my question - If we are behind on the payments (which we are)- can they still call us and harass us? They are the only ones we have still been getting bills from - they have the disclaimer on it about not being an attempt to collect a debt if we have filed BK - But it shows all the late fees etc. - I am just wondering if we are going to start getting calls from them as soon as the discharge comes through since it is a secured loan we did not reaffirm and have not paid in a while.

[keepmine]

They can't call and attempt to collect but, they can sure begin foreclosure proceedings.
If you can't afford to pay your secured debt, you've got something you can't afford and it's hard to see how bk is going to be a fresh start. Did you reaffirm the first mortgage? Any equity in the house?

[blaze]

Our attny said they are second in line and therefore cannot start foreclosure - We are current on our 1st loan and reaffirmed that. Home sales are really bad in our area so were were able to claim no equity in the home. That will change for sure - we are in a great area - great schools etc. and plan to live here forever so one day there will be equity. It is possible we could try to sell now and make enough to pay off both loans and break even. .The 2nd loan - we can afford to pay it but have chosen not to lately as we are getting back on our feet following this mess, the loss of our business, husband starting new job etc. We included that payment in our expense schedule - but had unexpected medical bills after filing that we needed to pay intead - plus attny fees...We have only missed a couple of payments and plan to pick them back up next month- we know we can easily afford to do so. The way our attny explained it (very briefly) is that they cannot foreclose - the 1st mortgage holder would have to do that - which they won't if we are current. I hope he is right - anyone else know if they could instigate foreclosure as 2nd in line?!
And does anyone else know if they can call us about late payments if that debt is discharged? Thanks

[tommy463]

Blaze,

Congrats I think! If you recall, you and I have the exact same timeline. I had ZERO show on pacer for me today too. From my understanding, it is a good sign.

But, back to your original question, does anyone know if Blaze and I are basically in the clear since the date has passed?

Trustee did not file and extention and no creditors objected to it?

[blaze]

Hey tommy - that is right - we had the same 60th day. I do think it is good for us that nothing is shwoing up - Ifinally can feel like no news is good news. I am hoping someone else can shed some light on my other question though about the 2nd mortgage and lien - I did some research and I am afraid my attny told me wrong - It seems a bank CAN start foreclosure even if they are 2nd holder and we are current on first. That doesn't seem right but I read it a few places. I just need to call them and get current I guess. If anyone knows anything please tell me!

[zimbra]

the 1st mortgage holder would have to do that - which they won't if we are current. I hope he is right - anyone else know if they could instigate foreclosure as 2nd in line?!
And does anyone else know if they can call us about late payments if that debt is discharged? Thanks

I hate being the black cloud, but feel you may have been given some inaccurate advice. The second lien holder CAN start foreclosure proceedings if you are behind on your payments, however the first lien holder will be paid off before the second lien holder, so if you really want to keep your home, you need to make sure both payments are current.

I had both our mortgages discharged in our Chapter 7 and the second lien holder has been in contact with us via mail to try to work out a plan. The first mortgage company had requested a lift of stay and has started the foreclosure process.

[blaze]

Yes I have figured out my attny told us wrong - the lien holder can foreclose - but they would most likely not get enough after the first was paid off to give them the full amt. we owe them. The house is worth 280K - the 1st loan is 245K and the 2nd is 50K. I am guessing it would cost them money to foreclose and the house might not even bring 280 so they would not get their 50. So if we get and stay current I am hoping we should be ok - We called them today and they acted like they had no idea we were in BK! I checked and they were definitly included and notified - It just never went through on their end so they are in the process of turning our loan over to their BK dept. They told us in general though as long you honor your payment plan you'll be OK - so we have to get current b/c we skipped a couple of months. I can't believe I am just now realizing the 2nd lien holder has the power to foreclose. I mean I knew we'd have to pay that 50K off to sell the house one day way way down the road- But I sure never knew they could kick us out (foreclose) for not keeping up with payments when we are current on the first loan and reaffirmed it! Forcing us into foreclosure will mean the house brings less money and the 1st mortgage could potentially lose out - it's not in their interest to have us foreclosed on - seems like they'd have some say in it as the primary mortgage holder. I don't get it but hopefully we'll get it worked out and be OK. Our attny. stinks for not explaining this!

[FreshLikeADaisy]

Blaze, congratulations!

And yes, if you did not receive notice of a motion to extend and the 60 days are up, you are quite safe from a creditor objection and pretty much any other adverse event occurring in your bk. In other words, you've crossed the finish line, now you're just waiting for them to hand you the prize. I can't speak to the foreclosure issue -- you already know that the 2nd lienholder can foreclose but probably won't -- but the bk is pretty much a done deal. Congratulations!!! I wish you every success in your new post-bk life!!!