Can I INCuDE my home equity LINE 2nd MORTGAGE IN BK?

[RMAN]

MY HOME IS WORTH $190,000 , I owe $189,000 on the first mortgage and $160,000 on the 2nd mortgage, NOT sure if i do chapt 7 or Chap 13

ITS NON OWNER occupied and I am current on 1st mortgage, only want to do this because my 2nd mortgage company lied to me about a loan mod, the told me to make 3 payments then the loan mod papers would show up in the mail, NOW here i am 7 months later and no loan modification papers

ITS IN NEVADA

ANY advice?

2nd Mortgage is a HOME EQUITY LINE 2nd /Credit card used to pay off MEDICAL bills debt consolidation

PLEASe no replies telling me you have a freind that does short sales, every one has one of those "FREINDS" lol

[helpmeout]

When you file for bankruptcy, both mortgages have to be listed and are included. You can reaffirm one or both mortgages. But given that there is $1K in equity over the first mortgage, I don't know if you will be able to do a 13 to strip the second, that is something to discuss with an attorney.

If the second is not stripped, it can foreclose on the house if it is not paid. If you do a 7 and only reaffirm the first, you will have a problem with the second being able to foreclose if it is not paid. Typically, this won't happen if there is no equity because the first gets paid first. But once there is more equity in the house, guess what the second will do.

[StartingOver08]

How do you know the house is actually worth $190k?

If you are that close, it would be worth it to get an appraisal to show it is worth less than the first mortgage to either officiall strip the HELOC off in a Ch 13 or just file a Ch7 and get rid of the second through negotiations (like others here have).

Search the board. You will see others that have filed a Ch 7, received their discharge, stopped paying on the second and negotiated a completed settlement with removal of the lien for 10 to 12% of the mtg.

[Mensa1]

PLEASe no replies telling me you have a freind that does short sales, every one has one of those "FREINDS" lol

That's funny. Everyone has one of those FRIENDS... kind of like the MAGIC FROG that I have in my pocket. Of course I have since learned that everyone doesn't have such a frog, just friends in the loan mod biz.

[SMinGA]

If it really is worth $190k and you owe $189k, it might be worthwhile to not pay the 1st for a while and let the balance increase from interest & fees.

If the value is less than what you owe on the 1st, you can 'strip' a 2nd in a ch. 13, so it gets treated as unsecured.