Mortgage and BK 7

[Cathold]

Hi,

I have a questions concerning filing BK 7 and my mortgage. We have not decided whether or not we are going to reaffirm our home. The problem mostly being that we are behind on our property taxes and only have less then 8mos to pay over 8,000 not sure we will be able to do this.

So with that said I happened to being looking at our counties registry of deeds and I noticed that our current Mortgage company does not show a mortgage deed for our home. (our mortgage was sold twice since we had refinanced in 2006), neither of the two banks that supposedly bought our mortgage shows any type of deed of mortgage or discharge. The only recorded deeds is with the original bank that that we refinanced with and it does not show discharged. My question is - what kind of problems does this pose? One if they try to foreclose do they actually hold the note? Should we request proof - if they can't prove it what then? Or if we are able to hold on to our home what happens when we try to sell or refinance? Wont the title search turn up incorrect and cause major problems?? -

I know this doesn't all pertain to BK - and maybe it should be listed in a different category, not sure??? Anyway, any advice on how we should untangle this mess would be helpful. Note that we reside in the State of NH.

Thanks

[iv65536]

OK, so when you refinanced in 2006, was the refinancing recorded? If my understanding is correct, there should be a lien from the refinancing for the new loan, and a lien release from the old loan. Is this what the property records show?

[Cathold]

Yes the original refinance was recorded. So at the time there was discharge and new lien recorded. But our mortgage has been sold to another bank after that. Shouldn't there be a record of the bank we are currently with out there? Or does it work differently when mortgages are sold.

[iv65536]

How you decide to deal with this will depend on whether you decide to keep the home or not, because if you are behind like this on property taxes, the mortgage co. will generally go ahead and cover that because a property tax lien is generally superior to a mortgage lien. If you intend to keep your home (reaffirm or retain and pay), you will want to bring the taxes current, preferably before filing.

[BobMango]

How you decide to deal with this will depend on whether you decide to keep the home or not, because if you are behind like this on property taxes, the mortgage co. will generally go ahead and cover that because a property tax lien is generally superior to a mortgage lien. If you intend to keep your home (reaffirm or retain and pay), you will want to bring the taxes current, preferably before filing.

This is what happened to us. $8K in back taxes paid by the mortgage company and an escrow account created to pay it back.