Any inf0 woudl be greatly appreciated...

[cofer22]

Thank you Debee for breaking it down.... That is the answer I was looking for. I'm not going to reaffirm any of my mortgages.

[debee]

A mortgage lien stays with the house. If you walk away from the house, the lien doesn't follow you. You won't have to deal with the bank and they can't come after you for any money post-bk so long as you did not reaffirm the debt. If you want to keep the house, at some point you'll want to get rid of the lien. (Or live under the threat of foreclosure). That's what people are doing when they settle their second mortgages.

The lien itself doesn't appear on your credit report (the way a judgment lien would). The debt that the lien secures will appear on your credit report but once you file bk the trade-line should read $0, IIB.

[discouraged]

I'm confused about that also. Does the 2nd go after you for the money even after bk if you let them foreclose on the house?

[cofer22]

Chapter 7 bankruptcy removes your personal liability for the debt, but it doesn't address the liens at all. So any property you own (car, house, furniture, etc) that has a lien on it when you file will still have a lien on it at discharge/closing.

A chapter 13 lien strip is a different thing.

So how long does a lien stay on your CR?
Once the property goes through foreclosure and the title is out of my name, will the lien be lifted, or will I still have to deal with the bank on that matter? Settle or just wait it out?

Jeff

[debee]

Chapter 7 bankruptcy removes your personal liability for the debt, but it doesn't address the liens at all. So any property you own (car, house, furniture, etc) that has a lien on it when you file will still have a lien on it at discharge/closing.

A chapter 13 lien strip is a different thing.

[tobee43]

jeff..i know it gets a bit confusing and in this situation we are speaking about a home....

it has always been my understanding and what happened in our situation was this...we surrendered our home....so whatever liens are on that home are passed to when the deed transfers to the "new" olders.....if and when the bank forecloses on that property...it just about over 3 years now and that property sites vacate.

however,IF we chose to stay and we still had a first and second...and we had filed bk....and retained the house...just because we named the 2nd and it was discharged and we continued to live there doesn't mean the lien is gone or clear...actually many go back and renegotiate the loan.

also in our personal situation we did have judgments that put liens on that property...however, we did file a motion to vacate those judgments and remove the liens...the order was granted...at this moment and i don't have the thread's name but the motion to vacate apparently varies from state to state in as much as whom is responsible for what when all is said and done...

i don't know if any of this helped..it's confusing and a bit nuts!

[cofer22]

Not to hijack this thread, but this 2nd issue is troubling me. So if I understand this correctly. If you file bk, have the debt discharged, you still "may" have to pay a settlement to have them release a lien. Wow, I wasn't expecting that!!!!

What does the lien do post BK? How does it affect you? I thought that BK discharged all the debt? How can they keep you on the hook if you have been released?

Jeff

[tcreegan]

Hi all,

So if there is no equity in the property and the 2nd is SOL, then how do 2nd's usually deal with the foreclosure process?

...wail and gnash their teeth. Then sue for the deficiency

What do they usually do after a BK Discharge? Depending if you're current or not?

...wail and gnash their teeth some more. Of course if you keep paying, they will smile and take your money. Or not pay..then approach them w. a settlement offer to get them to release their lien.

Tom in Colo

[cofer22]

So if there is no equity in the property and the 2nd is SOL, then how do 2nd's usually deal with the foreclosure process?

What do they usually do after a BK Discharge? Depending if you're current or not?

Jeff

[debee]

Yes, different lenders.

Then so long as there isn't enough value in the property to pay off the 1st with money left over for the second, I agree with the others that the 2nd won't foreclose. It would not only cost them money to foreclose but as the others have pointed out, they would have to pay off the first before they got any money.

In the event that you are the last person on Earth with equity in your property, you will know if anyone initiates a foreclosure because you will receive a foreclosure complaint. That's what gets the ball rolling in Ohio.

[tobee43]

bkparalegal mentioned your state is an judicial state which means they must go through the court systems and proper state guidlines to foreclose...and as tom points out the first would be first in line and anything left over would go to your second....unless you have a ton of equity in your house ...your 2nd is SOL.....

[bk323]

Are your first and second mortgage loans from different lenders?

Yes, different lenders.

[debee]

Are your first and second mortgage loans from different lenders?

[tcreegan]

Hi bk323,

If the 2nd wants to foreclose, they have to pay off the 1st before they get anything. If there isn't enough equity to pay off the 1st, they aren't going to let the 2nd foreclose.

To find out what notices you should get and when, do a quick search of OH foreclosure law.

Tom in Colo

[bk323]

Thanks. Would I get a notice to accelerate first or exactly how would I be notified.?