adding 2nd mortgage to list of creditors

[Nickyj17]

I have a home equity line of credit that is very excessive. I recently modified the payment to afford it but the modification only lasts for 2 years and then it balloons back to a high payment.
I was told that I could add the equity line to my bankruptcy case and it would probably be re re entered as a lien on my house.
The heloc is BofA in amount $260k, my first is countrywide in amount $247k the house is worth aprox $450k.

I have a minor child and live at the house so I believe I have some homestead rights. I would like to keep my house.
My question:
1/ should I add the equity debt to my ch 7 filing
2/ if the creditor places a lien is it common for them to add 10% interest
3/ is it possible the creditor could foreclose

What advise would you offer.

Many thanks

Nicky

[NoMoreCards]

I have a minor child and live at the house so I believe I have some homestead rights. I would like to keep my house.
My question:
1/ should I add the equity debt to my ch 7 filing
2/ if the creditor places a lien is it common for them to add 10% interest
3/ is it possible the creditor could foreclose

1.) You MUST list the equity debt in your ch7 filing. ALL debt must be included.
2.) The HELOC already has a lien on the house, as this is secured by the house.
3.) If payments are not made, it will be foreclosed upon.

Having a child, or not, or even a homestead does not change the fact that the notes are secured by the house itself. If it isn't paid for, they will foreclose. Children, retires, handicapped, it does not matter...they will foreclose if not paid.

All the best.

[newbie2]

I'm having a hard time following what you're asking, but I think you are asking if you can "strip" the 2nd mortgage.

First, all debts have to be listed in your bankruptcy petition. Secondly, you can't "strip" the 2nd mortgage in a Chapter 7. You can do it in a Chapter 13 if the amount of the first mortgage is greater than the market value of your home. (In your case it isn't.)

Normally a lien is placed on the home with 2nd mortgages. Are you sure you don't already have a lien placed by the mortgage holder? (Many people think one isn't there, and it is.)

Edit: Nomorecards replied as I was typing mine. Sorry for the duplicate info :-)