Posted on: 22nd Jan, 2009 08:40 am
we applied for a loan modification on our 1st and 2nd mortgages after voluntarily dismissing a chapter 13 that had never been confirmed. this was done in 6/2008. both mortgages are with the same bank. we were approved and completely closed on the 1st mortgage within 3 weeks. we have been making the mortgage payment since 8/08. the second mortgage however, is totally confused. we have submitted the required paperwork three times now and for what ever reason, it continually gets lost. thus, our second mortgage was charged off in 12/08. i was told by the bank that it was charged off and will be sent to an outside collection agency. we are considering filing chapter 7, but want to keep our house. there is a lot of other debt. the bank indicated they could not forclose on the property because there was not enough equity. we owe 84,000 on the 1st mortgage and approx 29,800 as of 11/08 on the 2nd. the home is valued at 110,000. can this now charged off second mortgage be elimated in the chapter 7 filing?
hi beattlebops,
as far as i know, charged off mortgage is eliminated by chapter 7 bankruptcy. the debts which are not eliminated by chapter 7 are child support, tax claims, alimony, property settlement obligations due to divorce or separation, student loans and fraudulent debts. to know more about chapter 7, check out the following link:
http://www.mortgagefit.com/bankruptcy/chapter7.html
thanks,
jerry
as far as i know, charged off mortgage is eliminated by chapter 7 bankruptcy. the debts which are not eliminated by chapter 7 are child support, tax claims, alimony, property settlement obligations due to divorce or separation, student loans and fraudulent debts. to know more about chapter 7, check out the following link:
http://www.mortgagefit.com/bankruptcy/chapter7.html
thanks,
jerry