My bk was discharged back in January of this year. We reaffirmed the 2nd mortgage on our home, but not the first. We owe approx $170,000 on our home, but its value is approx $130,000. We are wondering what would happen if we walked away from our home. I understand that the first mortgage would not be an issue because it has not been reaffirmed, but the $34,000 that is still owed on the 2nd mortgage is what I am concerned with. Am I stuck in this house until that is paid off? If the house sells (via foreclosure), there probably won't be enough funds to pay any of the 2nd mortgage. What happens to that loan? Am I still required to pay that loan back or is there something I can try to work out with the bank? Anyone have suggestions?
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From my understanding, if you reaffirmed then you are pulling that item out of the bankruptcy. That loan will be a debt that you owe. You are required to pay that loan back, but the bank may accept a seetlement....it is really up to them. I am unsure how your would be 1099c on the 2nd if the bank did a settlement however.Originally posted by bkmommytms2 View Post
Have you checked Pacer to see if bank sign reaffirmation and got it filled with the court? You may have signed but the bank did not follow up on it side...
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