2nd Mortgage - Letter of Foreclosure

[Bizeeparnts]

We filed Ch 7 on 10/12, had our 341 on 11/8. I didn't list my 2nd mortgage on the paperwork as it is through a private party and I only owe another $800 plus some fees and I didn't want this person to know about my BK.

Just a few days ago, I received a letter from the guy's attorney demanding the $800 plus fees by 11/28 or they are going to start foreclosure proceedings. My mother has said she would loan me the money for this, but I am scared to pay this off right now. Could it affect my BK being discharged? Should I send the attorney a copy of my notice from the BK court so he knows what's going on? I just need some guidance on the best thing to do with this. Please help!

Bizee

[Minnymouth]

Since your "friend" wants to be this way about it - ammend your petition and include it in the bankruptcy!!!
You should have listed it anyways.

You did not say whether you were keeping your home or not?? If not, be sure to include the 2nd mortgage and notify your attorney.

Why couldn't that "friend" call you??

Yeah, your mom could pay if off - but save her the trouble and expense if you are not keeping your home and your "friend" - why couldn't they have called you??

Minny

[Bizeeparnts]

2nd Mortgage

Minny-

I guess I wasn't clear on my posting. The person who holds the 2nd mortgage isn't a friend but is the guy who sold us the house. He held back a 2nd mortgage so we could get into the home.

I filed pro se, so I don't have an attorney to help me with this, which is why I need all of you!

I am keeping my home, the equity is exempt and we have said we are going to re-affirm it, even though we haven't yet. I am just tempted to pay the stupid guy off and be done with it, but would it affect my BK in any way?

Bizee

[Minnymouth]

Now -
If the trustee finds there is a 2nd mortgage and you did not deliberately list it - you can get dismissed for possible fraud.

You can amend your petition to include the 2nd mortgage and correct your paperwork. Continue to make monthly payments on the 2nd mortgage just like you have to do on the first to keep the house. As long as you are making payments and they are current NOBODY can foreclose on you.

Your fellow who holds the 2nd mortgage can foreclose but the filing of bankruptcy stops it. It will cost him more for attorney and filing fees then what you owe him to get the automatic stay lifted.

You can't "pay him off " yourself because you would be showing special treatment to a secured creditor.

But if your rich uncle wanted to go buy your 2nd mortgage or pay it off after your discharge who cares??

Best get that listed and notify the Trustee asap.

Clean it up or take your chances with the Trustee.

Minny