Someone..Anyone...PLEASE HELP!

[Struggling11]

Brief history - filed for Ch 7 March 09, Discharged - July-09, Closed Dec-10. Included both 1st & 2nd mortgage...did not reaffirm.

Fell on hard times in January of last year when husband lost his job. Was unable to make mortgage payments for 3 months.

Currently, Wells Fargo has offered us a modification on the 1st which will save us a great amount of money. The 2nd - we were notified in writing from Wells Fargo was charged off in March 2011.

Does anyone know, since the 2nd mortgage was included in our bankruptcy, not reaffirmed and discharged, and bank has charged it off, can they collect on this debt.

I do not want to agree to a modification on the 1st, if the bank can turn around and say no no no, you owe us this on the 2nd or we are foreclosing.

So nervous!!!

[HHM]

Yes, in the sense that the security interest can be enforced, e.g. foreclosed. The 2nd mortgage can/may foreclose.

Just go ahead and agree to the modification. You will need to deal with the 2nd mortgage at some point (either it will start foreclosure or you will go to sell the house). You should look into settling with the 2nd mortgage to have them remove the lien.