If 1st is kept current, but second in 6mos. late and file ch7,foreclosure?

[Mensa1]

What's the chance they will foreclose?

To the OP question... I think we need more info here.

What is the balance of the 1st, bal of 2nd and value of the house (today).

Just because Chase is the lender doesn't mean that there aren't difference investors involved... or in the eyes of Chase at least. Usually they segregate their 1st and 2nd mtg risk pools so even when it is the same co, it is internally viewed as different cos. Also when your 2nd goes into default and you have filed Chase will likely transfer/assign the mtg to another business entity that Chase wholly owns... even further seperating the mental ownership between the 1st and 2nd mtgs.

Anyway, I think whether Chase will do anything depends entirely on the values of the paper as opposed to the collaterol. Just because they hold a 2nd on property that they also have a 1st mtg doesn't give them any incentive to blow up the deal. In doing so they are wrecking a perfectly performing 1st mtg and unless there is good reason to do so, I don't think they will.

[spidge]

I'm still in a haze as to how the second will be effected in a ch 7? If you want to keep the asset are you not required to keep all related payments current? Or is it because there is no value to the lien that enables you to include the collection right into the CH7? In all the reading here and on other forums I have yet to see this happen. I do hope you the best and would do this also but again have yet to see this succeed. Would this be the same as allowing it to be written off as bad debt to a junk collector then filing CH7 and working on removing the lien with the original creditor?
If you make this go through i want your attorney's #.

[spidge]

...also, if you were to quit paying the second after the CH7 would't the right to collect still be in tact therefor enabling the second mortgage holder the abillity to sue you and win as you could not file again for BK protection?
Oh what a headache I now have.

[Mensa1]

...also, if you were to quit paying the second after the CH7 would't the right to collect still be in tact therefor enabling the second mortgage holder the abillity to sue you and win as you could not file again for BK protection?
Oh what a headache I now have.

Let's take an aspirin for that headache. The only suit that can and will be filed is if you are in a judicial foreclosure state and that suit would be a foreclosure suit. They cannot sue you to collect monies from you since you no longer owe them a debt personally after disch in your Ch 7.

The only place that the lender can look to collect is from equity in the property, via foreclosure. They cannot garnish wages or any other asset other than the secured property. If they forego the foreclosure because there is no equity then they either charge off completely and hope that some day you sell the house and will need to settle in order to get a release of the mtg at the time of transfer, or they decide to settle with the homeowner for pennies; (a relevant amount compared to the value of the property less the 1st mtg = appx value that the 2nd may consider).