CH7 and mortgage
Date: Sun, 07/25/2010 - 11:21
I am filling for ch7, I have 2 mortgages, I understand ch7 does not discharge the 2nd, if the bank forclouse on me for any reason, does that mean I will be responsible to pay the 2nd even after ch7 discharged????
I assume that it depends upon what state you reside. I reside in
I assume that it depends upon what state you reside. I reside in California.
I just filed Chapter 7 last week. My attorney told me that I should be able to keep the house even if I don't pay the 2nd until such time that there is enough equity for the 2nd to foreclose on it. Right now, I owe over $300,000 between the 1st and 2nd and my house is only worth $130,000 at best.
So, for the time being, I'm going to continue making the 1st and see what happens.
It's my understanding that so long as a reaffirmation agreement is not signed, you can walk about from the house any time after the bankruptcy and neither the 1st or 2nd can do anything to you to collect the deficit.