Behind on 2nd mortgage/ after bk discharge

[stef]

Does anyone know what measures our 2nd mortgage company may take we are 3 mos behind on our 2nd mortgage, but current on the first. The second mortgage was a 125% loan that was never reaffirmed. Our bk discharge was march 2005. Unfortunately we still had to pay for student loans and had to pay extra each month on the first mortgage to keep the house.

any help is appreciated!
thanks

[HHM]

Generally, the 2nd mortgagor can foreclose the house and take deed to the property.

Two things can usually happen at this point

1. They allow you to keep making payments to the first, and they do nothing. But realize, you no longer own your home.

2. The 2nd mortgagor will buyout the 1st mortgagor, evict you from the residence, and sell the house using a real estate agent.

Realize, if the 2nd mortgagor foreclosures, they will as some point need clear title, which means paying off the 1st mortgage. If the 2nd is at 125% LTV, and the house couldn't even be sold at market value to cover both loans, the 2nd mortgagor may do nothing.