Filed Chapter 7 but 2nd Mortgage giving me problems

[mikechristy]

I apologize if this was answered, but I filed for chapter 7 back in June of 09 and got a discharge on everything, which my 2nd mortgage for $50,000 along with my first for $95,000 were both included as discharged by the court. But now I have my 2nd mortgage lender coming after me saying I am responsible for insurance on the property and that I need to get with the 1st lender and find out. They also said that I am still responsible for payments and insurance regardless of discharge.

I called the 1st mortgage company and they said they closed my loan account on 12-2009. However, when I called the Title company I went through for this property they said that on that date in December of 09, they show that the 1st mortgage lender resinded the default of the loan. I don't know why that is, but they are not pursuing me for money anymore.

My question is if I am still responsible at all for the 2nd mortgage lender issues, because I am assuming they are having issues in getting paid and may have a lien on the property, I have not received any lien notice yet. Can you comment please and if this was already answered link where I go for it please. Thank you

[SMinGA]

You do not owe them money, but if you still live in the property it doesn't mean you get to live there free and clear. Their security interest remains. Lack of insurance could be cause to foreclose even if you're making mortgage payments. The purpose of foreclosure is not to collect $ from you but to take possession of the property.

[justbroke]

You do not need to pay them, unless you want to stay in the home. It's as simple as that. You are also responsible for keeping adequate hazard insurance on the home as well. They can foreclose if you don't do those things.

Please understand that the bankruptcy did not remove any liens that you had on the property, and that includes both the first and second lienholders. The bankruptcy only removed your financial responsibility as far as payments. However, if you don't pay, they can foreclose upon the property. If you don't adhere to any other provisions in the Mortgage and Note -- such as adequate insurance -- they may foreclose.

SMinGA sums up the other parts well. You should prepare to lose the property. You should be saving your mortgage payments in a savings account because you are likely to be foreclosed upon. You'll need that money for your new place and costs to move.