Question about 2nd motgage after DC

[bakergrl]

I am looking at a free copy of credit report from TransUnion. It says that my 2nd mortgage has a 0 balance and the pay status is paid or paying as agreed. We did not reaffirm this debt but have been paying it each month. They do not give us a statement so we have no clue if it is being applied or not.

What does this mean? Our mortgage shows the same thing but it shows are payments for the first mortgage up to this month where as the 2nd stops at last August right before we filed.

[eastbaybk]

Sounds like your personal liability on the 2nd was discharged. All that exists then is the lien on the property, which if you stop paying, they can force a sale of the property if there were enough equity to pay of the lien. Contact your 2nd and ask for a statement.

[bakergrl]

I'm confused, my mortgage shows this also but they have continued to report the payments (same bank). If I continue to pay they can't force the sale right? What if for some reason I am a couple weeks late on the payment can they force it then?

Sounds like your personal liability on the 2nd was discharged. All that exists then is the lien on the property, which if you stop paying, they can force a sale of the property if there were enough equity to pay of the lien. Contact your 2nd and ask for a statement.

[eastbaybk]

Check w/your attorney (if you had one when you filed) because each state is different. Depending on the bank I've seen some banks (mainly with un-reaffirmed auto debt) repo vehicles after only several weeks. By not reaffirming (which I generally advise against) there's that risk that they may enforce the lien and so do whatever you can to not be late on your 2nd. Is the property worth keeping?