What About Second Load?

[knguye11]

When file for Ch.7 will the second loan on my investment house be discharged also? Or will the bank send my a 1099 to pay tax on this?

Thanks in advance for your answer.

[JRScott]

It depends are you letting the home go in the bk.

If so then yes it and the primary would be discharged.

If you are reaffirming the house then you'd still owe the 2nd mortgage.

[knguye11]

It depends are you letting the home go in the bk.

If so then yes it and the primary would be discharged.

If you are reaffirming the house then you'd still owe the 2nd mortgage.

I'm filing for CH.7 so I would like to let this house go. So, you saying both loan 1st and 2nd will be discharge?

I'm not sure what is reaffirming mean? Can you please explain that for me.

[JRScott]

Yes if you are letting the house go both will be discharged and no 1099.

Reaffirming is when you want to keep the house. You sign a contract with the lienholders saying you'll still pay them and keep the house.

[knguye11]

Thanks so much for your answers.

[JRScott]

You're welcome