My bankruptcy was discharged in March and I did not reaffirm my 1st or 2nd mortgage. If I stop paying my 2nd mortgage, can they foreclose on my property? My 1st is $320,000 (which I'm current) and my 2nd is $75,000 (which I'm 60 days behind). My 2nd is showing discharged on my credit report, but they are still hounding me everyday to make a payment.
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Retained Lawyer 10/3/08
Filed Chapter 7 11/25/08
Equifax 536 on 11/25/08, Equifax 571 on 03/11/09
Discharged 03/11/09 -
I am in the banking industry and can tell you that in order for the 2nd to foreclose on you, they will have to payoff the 1st mortgager. Once they do that, then they can start foreclosure proceedings. Based on the numbers you provided, there is no way that the 2nd would buy out your first.
Now, on the flip side, they will leave the lien on your property, so they will get paid eventually. If they see equity in the home, they could force you to sell, but not likely in this market...
Hope that helps some...Filed Ch 7 11/28/09 | 341 1/7/10 | Last Date for Objections 3/8/10 | Discharged 3/10/10 -
Would the 2nd be able to charge interest and late fees for the whole time until you sell?Comment
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They will most likely want to charge it off to get it off of their balance sheet. They have to report their non-performing loans regularly at board meetings and such and would eventually want that off of there. I would think that it would get charged off, the lien left and that would be it. I don't think they would sue you unless they thought they could get something out of you...The only thing that worries me is the amount of the 2nd, but maybe someone else can chime in if they have been through this..
Originally posted by maddog2112 View PostFiled Ch 7 11/28/09 | 341 1/7/10 | Last Date for Objections 3/8/10 | Discharged 3/10/10Comment
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Legally, they have the right to foreclose, the real question in this market is; will they? Not likely. However, the lien stays on your property. Also, since you didn't reaffirm, they shouldn't be contacting you to make a payment, your personal responsibility has been discharged in your BK; the only remedy they have is foreclosure. They are actually violating the permanent injunction of your discharge by contacting you. Also, they can't sue you.
To maddog, yes, the loan continues to accrue interest and fees the whole time.
This blog post http://askmethner.com/?p=450 sort of explains the situation you are in.Comment
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