Converting 13 to 7 and 2nd mortgage question

[bshaw96]

Hello. My husband and I are currently in the 2nd year of a Chapter 13. We are paying over 900/mth. I have recently lost my job, and the payments are now next to impossible. We originally did not file 7 because we were given land by my husbands grandfather that was sentimental to him and he didnt want to lose. However, we recently found out our exemption would cover the land, and we could convert to a 7. We intend to give up a car, and keep our home and 2nd car. My question is this. We included 2 months arrears on our first mortgage which we understand will need to be caught up when we convert if we want to keep the house and reaffirm the debt. But we didn't think to ask about the 2nd mortgage. We did an 80/20 loan. The first loan is for 120,000 and the second is for 30,000. Our second mortgage was charged off not long after filing our chapter 13. We understand this does not release us from having to pay it back, but are now wondering what effect will this have on use converting to 7 and keeping the home? Will that loan also have to be brought current or paid off entirely in order to keep the home? Thanks for any answers!

[newbie2]

Hello. My husband and I are currently in the 2nd year of a Chapter 13. We are paying over 900/mth. I have recently lost my job, and the payments are now next to impossible. We originally did not file 7 because we were given land by my husbands grandfather that was sentimental to him and he didnt want to lose. However, we recently found out our exemption would cover the land, and we could convert to a 7. We intend to give up a car, and keep our home and 2nd car. My question is this. We included 2 months arrears on our first mortgage which we understand will need to be caught up when we convert if we want to keep the house and reaffirm the debt. But we didn't think to ask about the 2nd mortgage. We did an 80/20 loan. The first loan is for 120,000 and the second is for 30,000. Our second mortgage was charged off not long after filing our chapter 13. We understand this does not release us from having to pay it back, but are now wondering what effect will this have on use converting to 7 and keeping the home? Will that loan also have to be brought current or paid off entirely in order to keep the home? Thanks for any answers!

I'm really surprised that your 2nd didn't file for a lift of the automatic stay since you are so far behind. Were you stripping the 2nd mortgage during your plan? If you were, then converting to a second stops that action. The lien will exist when you convert.

You really need to pick up the phone and make an appointment with your attorney about all of this. Good luck!