If 1st is kept current, but second in 6mos. late and file ch7,foreclosure?

[jennilynn]

2nds and 7

Definately talk to an attorney before using this tactic.

Just because the 1st is current, doesn't mean they can't go with foreclosing on the 2nd. Now whether they will or not, it's anyone's guess. Their legal dept. would review the file. You run a risk of them moving for Relief from Stay and taking the house in foreclosure.

Since Chase holds both in the original post, there's a very real chance they could see a benefit of foreclosing... it's anyones guess.

Basically in a 7 if you aren't current with mortgages or cars, you can and many do lose the property to the creditor...

You may be able to push for a modification by filing. so it's something to weigh heavily to decide if it's the way you want to go and hope it works in your favor, but realize the plan could backfire.

I worked in bankruptcy for years and in a 7 we would not file unless the accounts were current if the client wanted to keep the property. Too much risk to lose it.

[spidge]

Great timing. I am 15 months behind on my 2nd that has no collateral and the first has modified and is on time. I would like to file BK 7 and settle with the 2nd afterward.
I know the ideal situation is to be current on both upon filing a ch 7, but the 2nd(BofA) had me pay four months of trial payments and did not do anything for me. I never even recieved any kind of answer from them so decided to just stop paying again. So could I still file a ch 7 and negotiate the lien afterward?

[justbroke]

What's the chance they will foreclose?

No one can answer that. Since Chase holds both mortgages, they hold old the cards. They will suffer no more from closing on the second, than they would have closing on the first. If you're in a strict foreclosure State, then they may foreclose the second anyhow and evict you.

When seeking to use this type of strategy, you must always weigh the downside. The downside is that Chase calls your bluff, moves for Relief from the Automatic Stay (RFS) and then proceeds with foreclosure on the 2nd. You have to be willing and be able to deal with that possibility.

It's a strategy. You always need a Plan B.

[drowningfast]

I have my first and second with Chase. Their in house modification raised my payment by $100! WAJ! I have more calls from creditors than from customers. I run a carpet cleaning business.

I'm considering CH7 but will keep current on the first through the whole thing. I'll just let the second go.

What's the chance they will foreclose?