2nd mortgages rears its ugly head

Talk to an Attorney. But with proper documentation of the bankruptcy, a good title company should be able to insure over the defect an allow the loan to close while you deal with the lender.

Joe is correct, you absolutely will need a good real estate attorney. IF the property that secured the loan had sufficient value at the time the bankruptcy was filed, it is likely the court did not discharge the second debt. The 1099 would have been issued because a decade ago, a charged off loan was treated as a 'gift' of sorts from the lender (they lent you the money and did not pay it back, so the IRS treated it as income). If the above scenario fits your situation, then the second may very well be due. HOWEVER, if there was not sufficient value in the home to cover the first mortgage AND the second mortgage, then it is likely the court converted the second to an unsecured debt and forced the lender to charge it off. You will end up with this baggage as long as you own the home, so it would be wise to get the attorney to get a court order that the Deed of Trust covering the second be reconveyed (removed from Title). ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000.