Mortgage questions after discharge

[Overmylimit]

If all goes well I will be discharged Chp 7 in the beginning of May.

I have a question about my mortgages at the point of discharge... I have my 1st which has been modified and is current, my 2nd which is a year behind but the house is upside down so I will be making them a settlement offer at some point for 5-10% of the balance.

The question is about two rental properties which have a 1st and 2nd on both. The 1st is current on both and the 2nd's are one month behind on both. If I am behind at all on these can they just take them? since I will not reaffirm and the payment is late do they try to foreclose? or do they simply just take the property?

That's the part that is confusing, if I am behind on payments and I don't re affirm its not really my place anymore so wouldn't they just take it?

Or can I treat this like my 1st on my primary home and hold out paying the 2nd's until I can make them an offer

[StartingOver08]

In order to take back the properties, even when you surrender, the lender either has to foreclose (in rem) or you work out a Deed in Lieu of foreclosure (DIL).

Since you are nearly discharged (yea! ) you can just let the two properties go if you prefer. Technically, even though you have surrendered, the property has your name on it and your name will not be removed until the foreclosure or DIL is completed. This exposes you to other liability. For example, if there are HOA fees due post filing or if someone gets hurt on your property after you have surrendered but before the F/C is completed.

As to treating the properties like your primary, paying the first mortgage and negotiating the second mtg, I don't know the answer to that one. It seems like it would work, but someone with more knowledge will have to answer that one!

[Overmylimit]

I still have insurance on both units and that's the thing is they have been up for sale for awhile since there is value in them. I told the Trustee but he didn't really care since they weren't selling anytime in the near future. So I would rather hold on to them until they sell since they are occupied and the rents cover the mortgages..barely because of the value in them. If I could buyout the 2nd's then they would have even more value.

[Overmylimit]

So if I don't surrender the properties then they have to foreclose even if its discharged? So if that's the case if I am only a month behind would they still try to foreclose?

[catleg]

One of the hot topics in bank insolvency these days is what are those 2nd's really worth? The famous stress tests last year valued them at 86 cents on the dollar (believe it or not). It seems likely their true value is well below. So in a nutshell I would expect the lenders to continue to extend and pretend for a long time.

[Overmylimit]

Well today I looked at Pacer and it show all kinds of activity with the 1st's on both rental properties. They are requesting to free from stay...and it looks like they want the properties back also. It says that since there is no equity for me or the estate they want the title...

Also since they scheduled a hearing, do I go to this and will that change my discharge date?