Second Mortgage help!

[carlos74]

My chapter 7 BK was discharged on 2007, I did not reafirmed my 2nd mortgage and it's not reporting to my credit report since 2007, it shows as paid off. They don't send me any bills, however I'm still making interest payments until now. My first mortgage has a balance of 105,800, my second one 29,000. Both together add up to 134,900. The value of my home is about 135,000 right now. I paid 140,000 in 2006.
Both Loans are with suntrust.

My financial situation is actually worse than a year ago. Do you think they will foreclosure on me if I stop paying that second mortgage? I'm in NC.

Thanks in advance!

[carlos74]

anyone?

[kjrmom911]

I don't know if my answer will be any help. How did you arrive at the value for your home? I thought mine was worth waayyyyyy more than it actually was in today's market. I think if you have some equity they may very well foreclose. At the very least they will probably say they are going to.

[momofthree]

Have you already contacted them about a modification?

[carlos74]

any other thoughts?

[debee]

.... it's not reporting to my credit report since 2007, it shows as paid off.

After discharge, it's normal for discharged debts to appear on your credit report as $0. It doesn't mean the bank mistakenly thinks it was paid off. It means that they can no longer go after you for the money. However, they still have the lien as you know.

I think kjrmom and momofthree have already suggested your two best options at this point. Good luck, carlos74.

[considering7]

Search this forum for "settled second" or "settling second mortgage". You'll find some interesting solutions to your second mortgage.