Skip to main content
index page

Ch 7 and second mortgage

Submitted by on Sat, 11/20/2010 - 19:01
Posts: 202330
Credits:
[Donate]

Here are the details in colorado:
1st mortgage- 160k
2nd mortgage: 95k
House value: 230k

Discharged from ch 7 feb 2010 and included both mortgages.
Reaffirmed first from 5.25% to 2%.
i have done nothing with second. Chase says it was charged off. They said they could and may send it to collection agency which could garnish wages.
Something doesn't sound right with this.


Chase (2nd) has the absolute right to enforce the lien. It (or its assignee) has the right to foreclose. You, yourself, admit that there is some equity in the property after consideration of the 1st ($70k). It could foreclose, pay off the 1st and pocket the difference. Will it (or its assignee) enforce that right is another story. The lien, however, passed through your bk unaffected. If Chase (or its assignee) does not exercise its right to foreclose, if and when you try to sell the property, unless Chase (or its assignee) has released the lien, you will have to pay the full amount due or cut some deal like a short sale.

[SIZE=2][/SIZE]Chase (or its assignee) cannot sue you for $$$. The underlying debt (promissory note) was discharged. If you are sued you have an absolute defense (discharged in bankruptcy).

Des.


Submitted by despritfreya on Sun, 11/21/2010 - 04:51

despritfreya

( Posts: 175 | Credits: )