Second Mortgage

[kwcapt]

Is it not uncommon for a second mortgage or HELO to be wiped away in a BK
if you are trying to keep the home?

[justbroke]

I don't believe you understand the process. In a Chapter 7, any mortgage that you don't reaffirm will be discharged. However, the lien is still there and that doesn't not go away. Those discharged liens are not "stripped".

If you're really trying to keep your home and are underwater now, you risk the potential of the second lienholder foreclosing on the collateral (your home). The odds of that occurring depends on many factors, including equity, appreciation, and private mortgage insurance.

[dm415]

In a 7 or 13.May be stripped in a 13.In a 7 it will be discharged,but the lien will stay,unless you can settle it.

[justbroke]

In a 7 or 13.May be stripped in a 13.In a 7 it will be discharged,but the lien will stay,unless you can settle it.

kwcapt psoted the question in the Chapter 7 forum area. The second may only be stripped in a Chapter 13 if the second is wholly unsecured and the debtor actually moves the court to do so.

[Stilltheone]

Everyone above is correct. The debt is discharged, you don't legally owe it anymore...BUT, the mortgage company still has security interest in your property...So, if you want to continue living in your house, you have to still pay.