[Sea]

What are the chances of the 2nd mortgage foreclosing on our home since the value of home has decreased and their chances of collecting after auction is none, and if they're thinking of 'deficiency judgement' against us it would not work since we filed chapter 7 and we are totally relieved of our financial responsibilities? We remain current on the 1st. mortgage. Please respond, I dont want to continue to make payments on the 1st if we are expecting a foreclosure from the 2nd anytime soon. Thank you

[bigdaddy9965]

wow i would contact my lawyer and find out what they can do, your lawyer who filed the chapter 7 will help you with this matter, this is why i did chapter 13

[RE its what i do]

It is a myth that a bk will stop a foreclosure. A mortgage is secured debt and cannot be held in bk. If you are not paying the second they can foreclose on you. actually they have no choice, its in your contract with them. This is a tough situation, are you trying to sell the house? if you cant pay the second you probably should. they will foreclose and contact the first lender and try to sell there interest to them. I would suggest talking to a good mortgage broker or RE attorney for advice

[877YouKeep]

We do not offer legal advice for that you need to contact an attorney:

A second mortgage has the same rights as the first which is foreclose. If you are in BK then there is a stay on the property and it can not be sold in a foreclosure sale by the lender (servicer). Once you are released or discharged from BK the second can foreclose. Chances are that if you are upside down the second will continue collections and offer programs to get you paying again but have the right to foreclose and if you refuse options they will have no other options.
*Be sure anytime you (anyone) is discharged or released from BK to reaffirm the debt. If you do not reaffirm you have no rights to the debt even if you start making payments again.

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