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

[Mensa1]

...also, if you were to quit paying the second after the CH7 would't the right to collect still be in tact therefor enabling the second mortgage holder the abillity to sue you and win as you could not file again for BK protection?
Oh what a headache I now have.

Let's take an aspirin for that headache. The only suit that can and will be filed is if you are in a judicial foreclosure state and that suit would be a foreclosure suit. They cannot sue you to collect monies from you since you no longer owe them a debt personally after disch in your Ch 7.

The only place that the lender can look to collect is from equity in the property, via foreclosure. They cannot garnish wages or any other asset other than the secured property. If they forego the foreclosure because there is no equity then they either charge off completely and hope that some day you sell the house and will need to settle in order to get a release of the mtg at the time of transfer, or they decide to settle with the homeowner for pennies; (a relevant amount compared to the value of the property less the 1st mtg = appx value that the 2nd may consider).

[spidge]

...also, if you were to quit paying the second after the CH7 would't the right to collect still be in tact therefor enabling the second mortgage holder the abillity to sue you and win as you could not file again for BK protection?
Oh what a headache I now have.

[spidge]

I'm still in a haze as to how the second will be effected in a ch 7? If you want to keep the asset are you not required to keep all related payments current? Or is it because there is no value to the lien that enables you to include the collection right into the CH7? In all the reading here and on other forums I have yet to see this happen. I do hope you the best and would do this also but again have yet to see this succeed. Would this be the same as allowing it to be written off as bad debt to a junk collector then filing CH7 and working on removing the lien with the original creditor?
If you make this go through i want your attorney's #.

[Mensa1]

What's the chance they will foreclose?

To the OP question... I think we need more info here.

What is the balance of the 1st, bal of 2nd and value of the house (today).

Just because Chase is the lender doesn't mean that there aren't difference investors involved... or in the eyes of Chase at least. Usually they segregate their 1st and 2nd mtg risk pools so even when it is the same co, it is internally viewed as different cos. Also when your 2nd goes into default and you have filed Chase will likely transfer/assign the mtg to another business entity that Chase wholly owns... even further seperating the mental ownership between the 1st and 2nd mtgs.

Anyway, I think whether Chase will do anything depends entirely on the values of the paper as opposed to the collaterol. Just because they hold a 2nd on property that they also have a 1st mtg doesn't give them any incentive to blow up the deal. In doing so they are wrecking a perfectly performing 1st mtg and unless there is good reason to do so, I don't think they will.

[CCsAreEvil]

Wouldn't the 2nd being charged off a step in the right direction? Doesn't that say that they do not plan to collect the debt ever? So, as long as home prices stay as they are or even lower more, a settlement negotiation to remove the lien seems more likely to go through.

[albacore44]

What does this do for the lien on your property though?

Their right to collect may go away but their right to the asset will not.

I'll have to wait and see............plan is to offer a settlement sometime down the road

[spidge]

Same boat here as Overmylimit, However i filed being current on both mortgages. but I stopped paying the 2nd HSBC after my 341. i just passed 30 days PD on 4/10, and my discharge date is 5/9.

Whats funny is they have been calling non stop. i answered one day, and said you know i filed for BK, and someone in an indian accent said we have no record of it, so they continue to call, and I ignore it. as far as I'm concerned, they were notified, i see them on my Creditors matrix in my court documents, if they did not process it, not my problem. After my discharge, I will simply tell them, I'm sorry to inform you, I now owe you nothing.

What does this do for the lien on your property though?

Their right to collect may go away but their right to the asset will not.

[albacore44]

If they continue to call you can sue them for violation of the stay. Let your attorney know what is going on and that you did verbally inform them.

True, I prefer to just let it ride, and tell them, suprise-suprise after my discharge

[helpmeout]

Same boat here as Overmylimit, However i filed being current on both mortgages. but I stopped paying the 2nd HSBC after my 341. i just passed 30 days PD on 4/10, and my discharge date is 5/9.

Whats funny is they have been calling non stop. i answered one day, and said you know i filed for BK, and someone in an indian accent said we have no record of it, so they continue to call, and I ignore it. as far as I'm concerned, they were notified, i see them on my Creditors matrix in my court documents, if they did not process it, not my problem. After my discharge, I will simply tell them, I'm sorry to inform you, I now owe you nothing.

If they continue to call you can sue them for violation of the stay. Let your attorney know what is going on and that you did verbally inform them.

[albacore44]

Same boat here as Overmylimit, However i filed being current on both mortgages. but I stopped paying the 2nd HSBC after my 341. i just passed 30 days PD on 4/10, and my discharge date is 5/9.

Whats funny is they have been calling non stop. i answered one day, and said you know i filed for BK, and someone in an indian accent said we have no record of it, so they continue to call, and I ignore it. as far as I'm concerned, they were notified, i see them on my Creditors matrix in my court documents, if they did not process it, not my problem. After my discharge, I will simply tell them, I'm sorry to inform you, I now owe you nothing.

[pcn]

Can someone please define "strict foreclosure State"?

[spidge]

My second is with a different lender than the first, but what seems to be encouraged is to work through a modification with both and once current file the BK7. Correct? But within the BK7 I do not have to reafirm both mortgages and therefore stop paying the second to encourage a settlement. The problem is that they would know I filed a BK7 and they could simply wait out that time period leaving the lien in tact. Correct? The lien will never go away and although I may have not made a payment to that mortgage beyond the statute of limitations how would the lien be delt with?

[Overmylimit]

Oh and my 2nd was charged off months ago, but that still doesn't release the lien...

[Overmylimit]

So I am very close to discharge (fingers crossed) I am current with my 1st and my 2nd I haven't paid in over a year both different banks. I too was worried about being current with both going into the Chp 7 but I didn't have a choice. I will let you know in a few days if it backfires or not...

[justbroke]

spidge, for you, the 2nd is probably charged off. You probably have a different lender on your second as well, right? That's the best position to be in, unless you're in one of those strict foreclosure States. I think the problem is when the same bank holds both mortgages, that defaulting on the junior mortgage, "could" cause some headache.