Deficiency Question

[capamando]

Hello to all,

We live in Florida. If we file for Chapter 7 but continue to pay our first mortgage(100k) and not the second (65K)...house is worth around 85k, can the second mortgage holder sue us for deficiency or is that discharged through Chapter 7?

Thanks

[newbie2]

Hello to all,

We live in Florida. If we file for Chapter 7 but continue to pay our first mortgage(100k) and not the second (65K)...house is worth around 85k, can the second mortgage holder sue us for deficiency or is that discharged through Chapter 7?

Thanks

Don't reaffirm the mortgages and they will be discharged. If you don't pay they can't sue you for the deficiency (if you sell the home or if it is foreclosed upon).

Your personal responsibility for the notes are released, the liens remain.

[needanswerss]

I guess I have a similar question but would like to make sure....chapter 7 bankruptcy filed and will be discharged soon. I'm thinking of a short sale on the house. Second mortgage needs to release their lien. The realtor says we could offer them a small part of the money from the short sale. Since the 2nd has been discharged, wouldn't they have to take whatever amount they get from the short sale as payment in full? Thanks.