This is kind of a strange situation...
We did not reaffirm our 1st mortgage, but did reaffirm our 2nd in our bankruptcy that was discharged January 09. We have continued to pay on both mortgages up until this point.
However, the 2nd mortgage is (was) a balloon that has come due as of today. I have been trying to work with the Credit Union since October to get this 2nd mortgage refinanced and have get to get an approval. I have been told at least 4 times that they will be getting my approval any day and will set up the closing. I am concerned that they will never be able to get this financed and I am wondering if I really want them to.
I am wondering what would happen if my husband and I decide to give up the house and put the 2nd mortgage into foreclosure, and find an apartment to rent. I have never been involved in a foreclosure situation and am wondering if the credit union that holds the 2nd mortgage can sue us for any money if we just walk away from the house. I know that the house is worth probably $50,000 less that we owe between the 2 mortgages and when I speak with the 1st mortgage, they always inform me that I do not owe the debt, so I am only concerned with the 2nd mortgage. I know that the credit union won't get their money when the house sells because there probably won't be enough proceeds to even pay off the 1st mortgage. What happens to that money that is owed? Can they sue me for that money?
Sorry if this is confusing or redundant.
Thank you!
We did not reaffirm our 1st mortgage, but did reaffirm our 2nd in our bankruptcy that was discharged January 09. We have continued to pay on both mortgages up until this point.
However, the 2nd mortgage is (was) a balloon that has come due as of today. I have been trying to work with the Credit Union since October to get this 2nd mortgage refinanced and have get to get an approval. I have been told at least 4 times that they will be getting my approval any day and will set up the closing. I am concerned that they will never be able to get this financed and I am wondering if I really want them to.
I am wondering what would happen if my husband and I decide to give up the house and put the 2nd mortgage into foreclosure, and find an apartment to rent. I have never been involved in a foreclosure situation and am wondering if the credit union that holds the 2nd mortgage can sue us for any money if we just walk away from the house. I know that the house is worth probably $50,000 less that we owe between the 2 mortgages and when I speak with the 1st mortgage, they always inform me that I do not owe the debt, so I am only concerned with the 2nd mortgage. I know that the credit union won't get their money when the house sells because there probably won't be enough proceeds to even pay off the 1st mortgage. What happens to that money that is owed? Can they sue me for that money?
Sorry if this is confusing or redundant.
Thank you!
Bankruptcy Wizard
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