What happens with non-reaffirmed 2nd if I sell?

[sadbutinneed]

OK, what if I reaffirm my first, but not my second mortgage. I stay current on both mortgages. In 5 years, I sell my house. I realize I am not "responsible" for the 2nd, but they still have a lien on my property that has to be settled before I sell it, right?

So the benefit in not reaffirming the 2nd is really only if I have financial trouble down the road and can't keep it current? Then if that happens, and my home value increases to cover at least part of that 2nd mortgage, they can still foreclose on me for not paying, right?

We filed on 3/12 with 341 on 4/8 and we're trying to determine our options for reaffirming and what it all means down the road.

Thanks!

[newbie2]

OK, what if I reaffirm my first, but not my second mortgage. I stay current on both mortgages. In 5 years, I sell my house. I realize I am not "responsible" for the 2nd, but they still have a lien on my property that has to be settled before I sell it, right?

So the benefit in not reaffirming the 2nd is really only if I have financial trouble down the road and can't keep it current? Then if that happens, and my home value increases to cover at least part of that 2nd mortgage, they can still foreclose on me for not paying, right?

We filed on 3/12 with 341 on 4/8 and we're trying to determine our options for reaffirming and what it all means down the road.

Thanks!

If you sell you have to pay off both mortgages to release the lien unless you can get the 2nd to consider a short sale. You're correct in that the bankruptcy releases you from the personal "promise to pay" but not the lien on the home.

Yes, if your home increases in value to the point that the 2nd thinks it would be worthwhile to foreclose, they can do so. (If you stop making the payments)