Forclosure help

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Hey there eveyone. Here's my trip right now:
I'm in CA
I already have gone through a Chapter 7. Dec. '09
I have a home with a 1st and 2nd both through Chase
I was just denied loan modification, and the 2nd is being charged off.
I am guessing the 1st is going into forclosure.
I owe about $75k on the second, and $330k on the 1st. The house is worth maybe $110k.
If, or when, forclosed, what will I owe? Do I owe anything on the 1st? How about the charged off 2nd? I know the charge off is just a term, but my question is will I still owe anything on it if the 1st gets forclosed? Any tax issues with this that I should be aware of?

Thanks!!!

[Amy26]

Did you reaffirm your mortgages?

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Nope
Did that on my truck, BIG mistake!

[Amy26]

If both your loans were included in your bankruptcy and you did not reaffirm your mortgages then you will owe nothing when it forecloses. My home took about a year to foreclose after I stopped making payments... so, you will have some time in it without making payments till they get around to foreclosing.

I'm not sure on the specific rules for your state, but you should not be liable for anything as the mortgage was technically discharged in your bankruptcy.

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AMY26, Thank you for your reply. After reading up on things, I was thinking that sounded right, but thought I would ask. I read a few things about having to owe major taxes back from the discharged loans, but that might be for those who did not go through banckruptcy.

[catleg]

There is a federal tax relief on discharged home mortgage debt running through 2012, it looks like the state of California was trouble for a while but is onboard now.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

SB 401: Tax Conformity Bill

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Thanks for the info catleg. And nice pic, that cracked me up!