Yikes!

[SamanthaJones]

I am now reading my second mortgage- it says that by filing a bankrupcty action I'd be in default (even if payments are not late), and that full payment of the note would then be due in full????? Anyone have any experience with that?

[twuoo]

I am not positive, but I think all the second mortgages say that. This is why it is inadviseable to take out a second mortgage/equity loan because if you default on that loan, you can loose your house right away. That is my understanding of it.

[ilovemycaitybug]

Yikes... I don't have a second mortgage but I would think that since your house is collateral it would be taken unless you paid them. JMHO.

[wrinkleigh]

Bankruptcy law supercedes ANY and ALL contracts that you sign. Dont worry about it.

[HHM]

I wouldn't worry about the BK default/acceleration clause for a couple reasons, (1) most jurisdictions hold them to be invalid clauses and the BK law supercedes that contract provisions, (2) on a practical side, 2nd mortgages would rather be paid than foreclose. If your intention is to keep the house, you will be fine so long as you keep making payments (and reaffirm).

[SamanthaJones]

Thanks. I was about to lose control of my bowels.

My goodness, two years after the fact I finally sat down and waded through all of that stuff.....now I wish i had NOT~

[spell]

Interesting point, but reaffirming the debt would negate this clause.

Also, in general 2nd mortgages very seldom foreclose becuase the 1st gets paid in full from the proceeds of the sale leaving little or nothing paid to the 2nd.