Illinois Law??

[gyro]

We filed BK7 back in 2001 and was discharged the same year. We have 2 mortgages on the house and did not reaffirm with either one, BUT continued to pay both mortgages and stayed in the house. Recently, my daughter was sick and in the hospital and we racked up high Dr. bills and have to pay for lots of medications now, therefore we can not afford the 2 payments anymore. I stopped making the payments late last year on the second mortgage, but continued to make the first mortgage payment. The 2nd mortg. has said that if we don't pay all the past due and late fees, they are going to start foreclosure on 3/15/06. I am wondering how long it takes in the state of Illinois and how will the 2 mortgage company foreclose without the 1st mortg company doing so??

[seanpwarren]

I don't know about Illinois law, but I am aware of a federal law, I don't remember the name, that says if a second position mortgage is in default it may assume the first mortgage and then sell the property.

[SinkingFast]

Amazing!!

A Junior Mortgage Holder can implement and process a Judicial Foreclosure in the State of Illinois.

http://www.state.il.us/court/OPINION...ML/3961051.txt

The Junior Mortgage Holder in this case did indeed Foreclose on the property. There was a bit of a fight as to who was to receive the proceeds from the sale. The amount left above the costs to pay off the 2nd and the costs of the Sale. Basically, the original homeowners wound up owing roughly a $7000 deficit on their primary mortgage.

[gyro]

But can the court make us pay anything since this was all included in our bankruptcy and we never re-affirmed??

[keepmine]

If you never reaffirmed, you have no responsibility for any deficiency baalnce or associated fees.

[SinkingFast]

You might wanna pull out that old BK paperwork and look it over good. See if both mortgage holders were listed as Creditors. Make very sure of your grounds. If you aren't sure when you read thru it, ask a BK attny to do it for you. Maybe the one you used to file originally.

It shouldn't be a problem because you've been voluntarily paying the payments, but you never know what hair brained scheme they'll contrive to make you responsible. Make sure your BK protects you.