2nd mortgage holder recourse if I maintain 1st mortgage paym

jpslogistics · Joined: 30 Apr 2008 Posts: 1 1.42 Dollars($)

I just concluded a ch 7 filing in march. I did not re-affirm 1st or 2nd mortgages. property value is $105,000, first mortgage unpaid balance is $99,646, 2nd mortgage unpaid balance is $35,000. I just received a loan modification agreement from 1st mortgage holder that until yesterday I did not know was an option available to me. I might be able to afford to make the 1st mortgage payments under the modification agreement, but it is very unlikely I can also continue making payments to the 2nd mortgage holder as well due to financial constraints. I really am wanting to understand, considering the equity situation as it is, what recourse the 2nd mortgage holder would have if I maintain residence in the property, make 1st mortgage payments however do not make any 2nd mortgage payments?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi jpslogistics,

Welcome to the forum.

Second mortgage is also a secured mortgage so you will have to pay this one also. Now if you cannot pay it then the trustee may liquidate some parts of your assets so that the second mortgage lender is paid.

I think you should contact with a BK attorney.

Best of luck,
Larry

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

You will be responsible for both mortgages, hope you can find a way to get everything straightened out soon so that you can get back on track.

All times are GMT - 7 Hours

Page 1 of 1