I got my chpt 7 discharge in March and have been paying my 1st & 2nd mortgages thru the process. I cannot get a statement from my 2nd mtg holder so I called them and they said "you didn't re-affirm, we cant send you one until you do." Obviously I don't want to do that, however my question is what security do they have on my home - do they still have a lien? If they are discharged and gone, what stops me from selling my home tomorrow and just paying off the 1st mtg not included in bk?
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They still hold a lien on your home. You cannot get rid of a 2nd mortgage in a Ch 7 bankruptcy. Keep making that payment, they can foreclose just like a 1st mortgage company can. -
That was my assumption, which leads into the next question. If I now decide I want to get out of this home, how hard is that?Comment
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How hard is it in terms of them coming after me for any deficiency/balance? I'm worried about getting a judgement or large collection now after my bk is already done.
I appreciate the feedback, thanks!!Comment
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If you haven't signed a reaff with either the 1st or the 2nd you can just walk away. Since you are in Minnesota, you will still have 6 months from the sheriffs sale date before you need to leave. The debt will be totally included in the bankruptcy and you will not be responsible for it.Comment
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That is good to hear. Doesn't look like the market in the metro is going to be very forgiving in the near term, I'm best going back to renting.
Thanks for the quick responses, this is truly a great site.Comment
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