At what point in BK to stop 2nd payments

[pcn]

We plan to negotiate with the 2nd for release of lien, so I am thinking we will have to "prove" to them that they have an interest in talking. Do I wait until after discharge, or can I stop after the 341 and trustee's Report of no Distribution? It would be nice to start saving towards the settlement $ but don't want to jeopardize the discharge somehow either. If you've done it, when did you stop paying? Thanks!

[helpmeout]

I would stop paying now. And after the discharge, approach them. Something is better than nothing. They are the 2nd, unless your house has enough equity to cover the 1st and the 2nd, they won't foreclose as they won't get anything. But before you do that, be very sure that you actually want to stay in the house.

[pcn]

Have you done this yet? I am a little concerned, since both mortgages were used (required per atty) in the means test. Wondering if I stop before all objections can be made (pre-discharge) could the second claim "well they never intended to pay the 2nd mortgage so it shouldn't be considered in qualifying for the ch7 means test.

[albacore44]

Have you done this yet? I am a little concerned, since both mortgages were used (required per atty) in the means test. Wondering if I stop before all objections can be made (pre-discharge) could the second claim "well they never intended to pay the 2nd mortgage so it shouldn't be considered in qualifying for the ch7 means test.

same boat here. 9 days until my 341, and I'm 16 days late on the 2nd. was planning on paying it next week.

interesting thing though. Yesterday i get a call from HSBC (2nd), a nice lady from India inquires about my payment. I inform her she should not be calling me since i filed BK. she asked if i was keeping the house. I said yes. she says there is nothing in the computer that tells her I filed BK, but she would note the account,but they will not consider it official, unless i fax them a notice.

In retrospect, I should have shut my mouth, and not told her, then waited until after discharge. that way, should I decide to stop paying prior to discharge, they would not move to lift the stay, not even sure they would. But I dont want to chance it and alert the UST.

I probably worry too much anyway.

[blondeinmn]

I'm in a similar situation. I planned on continuing to pay my second mortgage until after a chapter 7 was discharged. I simply don't have the money to continue to pay it. I would like to keep the house, if I could get the first modified and settle with the second. I'm not concerned about the second foreclosing as the house is underwater. First mortgage, $407000.00 balance option arm, second mortgage $85000.00 balance, balloons in 6 years. House value, $325000.00 to $375000.00. First is current, second is now thirty days late. I'm planning on filing chapter 7 this week after not paying my unsecured debt for 18 months. I don't need the second mortgage payment for means test purposes but I was wondering what the trustee would say about my stated intentions as to keeping the house and not being current on the second mortgage.

[liboton21]

Haven't paying my 2nd while one month late with 1st. Reschedule 341 next month and now BOA have a mod to include late 2nd payment to the loan. I'm waiting for NACA to negotiate a lower monthly for both 1st and 2nd. 1st mod was 2% and 2nd 3.25% but still not 31% of my gross. After discharge I can afford the mortgage but I rather negotiate while in BK.

[helpmeout]

Have you done this yet? I am a little concerned, since both mortgages were used (required per atty) in the means test. Wondering if I stop before all objections can be made (pre-discharge) could the second claim "well they never intended to pay the 2nd mortgage so it shouldn't be considered in qualifying for the ch7 means test.

I am 1 month behind on my mortgage(I'm not keeping the house even though it isn't upside down, I simply can't afford it). My attorney doesn't seem to think I needed the payment even though the expenses leave me with a positive $1K as the totality of circumstances is that it becomes negative as soon as I get an apartment.

Since you need it for your means test, you really should ask your attorney when you can stop paying.

[pcn]

Well, I finally got a call back from paralegal but the answer wasn't very clear. I am awaiting a new call from atty to hopefully clear this up. If I understood correctly, the paralegal said that if we stopped payments we could risk the 2nd asking for a "release of stay". Does that sound reasonable? Or make sense to anyone?