First and second mortgage question

Hi Kearen,Your second mortgage may have been what attorneys call "avoided" which means your home was underwater and there was no equity securing the second lien. So the court allowed it to be written off as a non-secured debt. We have seen this before. I highly recommend you speak with your bankruptcy Attorney and soon. He or she should know the answer to your question.All my best,Don LaPlumeP.S. If you have a friend who is underwater on their home, not been late on their mortgage and has wanted to refinance but could not please share my number with them. We may be able to help save them hundereds of dollars per month. 603-543-3700 ext 1 Thank you in advance.

This is a question for the attorney who handled your bankruptcy... if the note was "Avoided", then it's very likely you don't have to pay... and the note was released... most lenders will look at this as a "foreclosure", and the timelines associated with foreclosure and home financing is 3 years... so checking with your attorney for an explanation will better answer your questions... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Most likely the 2nd. mortgage is still listed on title as a 2nd. lien. So if you sell or refinance I'm sure they will want some sort payoff amount because they would have to release the lien.

I would not mess around. I would HIGHLY recommend consulting your Bankruptcy or a real estate special attorney. Or you may find yourselves having to move out of your home.

Something doesn't sound right. I would suggest contacting your Bankruptcy Attorney for advice.

This is a question for your Bankruptcy Attorney. At the time your bankruptcy petition was filed, a value is established for the assets you own, including the house. If the balance outstanding on the 1st First mortgage was greater than the value of the home, then it is likely that the court declared the balance of the 2nd to be unsecured (even though the loan is secured by the property). Then the 2nd lender would only get a portion of the amount due, similar to all of the other unsecured creditors and would have to release their lien against the property. However, if the balance due on the 1st was less than the value of the home, the 2nd lender has the right to continue to accrue interest and expect payment. You should not assume they are not able to collect just because they are not sending you statements. The fact that the credit report shows the balance was charged off, also does not meant they can't collect. Your attorney can confirm if the debt was totally discharged by the bankruptcy court and also if the lien was released as required. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com