If you knew you were going to try to settle on your second mortgage that is unsecured would you stop throwing money away now by not paying on it? Our 341 was 2 weeks ago and I do not want to have to keep paying on this. The one thing that I keep thinking is if I do not make that payment the mortgage company may get in the way of me getting a discharge. What would you do? Pay it until discharge or stop the payments now? I do not want to ruin my chances of a discharge.
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08-2009:Quit Paying Credit Cards
04-2010:Hired 2nd Attorney;05-2010:Filed 7
06-2010:341 Meeting (went very well)
08-24-2010: Discharged; 09-02-2010 Closed!! -
Did you reaffirm? Are you upside down on the home? -
Did not reaffirm and 1st mortgage balance is $191,000...2nd mortgage balance is $67,000...value of home? very unsure but the homes in my area and in my neighborhood are going for anywhere between $185,000 - $190,000 for a home very similar as mine. Need to know if I'm wasting good money and if I should wait for the discharge to stop paying the second?Originally posted by pepperoncini View Post08-2009:Quit Paying Credit Cards
04-2010:Hired 2nd Attorney;05-2010:Filed 7
06-2010:341 Meeting (went very well)
08-24-2010: Discharged; 09-02-2010 Closed!!Comment
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I'd stop paying.
But save up and plan to settle with the 2nd mortgage holder as the equity in your home grows. They still have a lien that will have to be settled if you ever want to sell the home.
Youo didn't reaffirm the 1st did you?Comment
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The logical strategy if the 2nd is really unsecured is to stop paying, but be saving up for a negotiated settlement--some sort of lump sum to make the lien go away. These forums are full of people who have settled underwater seconds. But you DO want to settle it because equity might just grow again. But right now the loan is pretty much worthless: not enforceable against equity in the property (since there is none) and not enforceable against you (since it'll be discharged in bk.)
And not paying will definitely not mess up your discharge--the whole point of bk is that you can't pay your debts!12/2009 Stopped paying CCs; 3/10 1st suit;
8/2010 finally served; No Asset 7 filed. 11 mos since last bal xfer
9/22/10 60 day club; 9/24/10 report of no distr; 11/23/10 DISCHARGED
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But what if the mortgage company contacts the courts and lets them know she's not paying? Then they'll know she has xxx amount of money per month she can use to fund a 13. Wouldn't it be safer to wait for discharge?Comment
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