Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Filed Ch 13, Upcoming CH 7, what to do about 2nd Mort??

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Filed Ch 13, Upcoming CH 7, what to do about 2nd Mort??

    Hi,

    I filed Ch13 last year as my husband was laid off for 15months and had high credit cards, 2nd Mort. was not stripped, I owe $215,000 on 1st Mort., $90,000 on 2nd Mort, house was evaluated last year at $265,000-$275,000, BK Atty. said we couldn't strip it. I was approved for a loan mod on 1st last month, hadn't paid on 2nd in 8 months, just found out is was charged off in July. Just spoke to BK atty abount 2nd he states that we would have to reopen a Chapter 13 to get 2nd stripped, but doesn't think it would happen due to house evaluation? But we are under water??BK Lawyer suggest's that I file CH 7 to get rid of the monthly Trustee payment of $261 and work out something with 2nd. The 2nd is $775 a month and I can't afford it, they are willing to work out a lower payment, I mentioned settlement, they said they would only settle for 75,000!! I have a meeting of creditors on 12/6 for Chapter 7 any suggestions is greatly appreciated!!

  • #2
    You can't strip a a 2nd mortgage in a 13 because you're house would have to be worth less than the first mortgage (215K). If you're house is really worth 265-275K and you only owe 210K on the first then your 2nd could very easily foreclose because it would be worth it form them.
    You're best bet might be just filing the 7 if are elgible, discharge all your debt but the house. Start paying on your loan mod for the 1st and work something out with the 2nd.
    The problem is since you do have equity in the house they will get something if they foreclose, you need to offer them something comparable.

    Comment


    • #3
      Hi needtomoveon,

      I mentioned settlement, they said they would only settle for 75,000!! In a business negotiation, rule is to start high....

      You have somewhere around 60K in equity after the first, cost of sale, no buyers in the local market = low auction price, .... the 2nd could get their hands on 45K, maybe more, maybe less.

      hadn't paid on 2nd in 8 months, just found out is was charged off in July hmmm....sounds like they are not interested in going after you, and in todays real estate market probably not surprising... they can just let the lien sit there until you/1st lender/someone goes to sell or transfer the property or a miracle rebound in housing prices makes it worthwhile to foreclose. Charging it off is just internal accounting, probably has some tax benefits for them...

      If you discharge the 2nd in the Ch 7, they might be more willing to negotiate with you...or might not....

      A third option is to not reaffirm either 1st or 2nd, stay in the house until evicted on the dawn of foreclosure sale, and bank the mortgage payments you aren't making. Given the time it takes to foreclose, you could rack up some big $$ ...

      Just some thoughts, might be helpful, might just be random nonsense...

      Tom in Colo
      Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

      Comment


      • #4
        My house was evaluated for $265,000 in August of 2009, the market around me has gone way down since then, I think it's worth about $240,000 now. My balance with 1st is $235,000 now with the new mod. If I get a free market analysis and it's only worth $240 do you think I coud strip the 2nd (Balance $97,000) in Ch 13 or do they only look at the previous balance 1st Mgt.($215,000) before the mod. I thought you couldn't strip 2nd in a Ch.7, that's why I'm nervous about going forward with the Chapter7, and maybe leaning towards opening up the CH 13 again to strip the 2nd.

        Comment


        • #5
          you can't strip in a chapter 7, only in a chapter 13 and only if the value of the home is less than the 1st mortgage.

          Comment


          • #6
            You couldn't even strip it in a ch.13 because the value is still above the 1st mortgage balance. If the 2nd mortgage has even $1 of security, then it cannot be stripped. It's an all-or-nothing situation, unfortunately.
            Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
            0% payback to unsecured creditors, 56 payments down, 4 to go....

            Comment


            • #7
              Hi again needtomoveon,

              You don't strip a 2nd in Ch 7, but you can settle, and possibly for pennies on the dollar is there is no equity from the 1st to cover the 2nd. Usually you wait until after discharge and a few months of no payments, then approach the 2nd lender with an offer.

              ...strip a 2nd in a 13 but settle a 2nd in a 7...sounds like 'new math'

              Tom in Colo
              Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

              Comment

              Unconfigured Ad Widget

              Collapse
              Working...
              X