1st and 2nd mortgage forclosed, can I...?

[RokitPowered]

I have a question that I have been getting different answers to.

3 months ago our house was foreclosed on. We had a $300,000 1st mortgage and a $120,000 2nd mortgage. The house was sold at a trustee sale for $250,000.

I am getting phone calls everyday from our 2nd mortgage company telling me to pay them.

If I file a chapter 7........will this get discharged or not?
Will I still owe on the first and the second?

I've been confused about the "lien stripping" talk.

Any thoughts is greatly appreciated!

[BKParalegal]

Lien stripping has nothing to do with your situation, and yes if you file a Chapter 7, the deficiency on the 1st mortgage and the 2nd go bye bye.

Good Luck

[RokitPowered]

Thanks for the fast reply.

The 2nd was a equity line that we pulled out some money to put back into the house.

I am in Arizona and have heard that it is a "non-deficiency"' state. However,
people are also telling me that a chapter 7 will NOT get rid of all of it?

Thanks for your reply. It helps out a lot.