Belt Auction - 2nd mortgage foreclosure after chapter 7?

2nd mortgage foreclosure after chapter 7?

What are the chances of the 2nd mortgage foreclosing on our home since the value of home has decreased and their chances of collecting after auction is none, and if they're thinking of 'deficiency judgement' against us it would not work since we filed chapter 7 and we are totally relieved of our financial responsibilities? We remain current on the 1st. mortgage. Please respond, I dont want to continue to make payments on the 1st if we are expecting a foreclosure from the 2nd anytime soon. Thank you

Public Comments

wow i would contact my lawyer and find out what they can do, your lawyer who filed the chapter 7 will help you with this matter, this is why i did chapter 13
It is a myth that a bk will stop a foreclosure. A mortgage is secured debt and cannot be held in bk. If you are not paying the second they can foreclose on you. actually they have no choice, its in your contract with them. This is a tough situation, are you trying to sell the house? if you cant pay the second you probably should. they will foreclose and contact the first lender and try to sell there interest to them. I would suggest talking to a good mortgage broker or RE attorney for advice
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/11/AR2008041101914.html If the house goes into foreclosure AFTER you file BK, it NOT part of the BK.
I am a banker who works in the forecloser dept. Did you include the 2nd mortgage in your chapter bankruptcy . Because if you did not they can still foreclose on the 2nd. You did not say if the 1st and 2nd are with the same lien holders. After everything is said and done if worst come to worst they can garnish your wages, after the dust settles. A chapter 7 only cover what you filed for at that time, but does not covering anything after.
I am no gonna say I am one hundred sure about it.Besides it really depends on the personal feelings.SO it would better for you to find yourself.Here is a good resource.http://mortgage.bestips.info/refinance-mortgage-with-bad-credit.html
You are in a difficult situation. Sounds like you've already consolidated your finances to the max. Was your second mortgage factored in? If it wasn't included in the Chapter 7 tehn it is a new deal. I would contact your bankruptcy attorney asap. He/she will be able to advise you of your options. Don't wait! Also check out this website for more info on foreclosures: http://www.credit-card-loans-debt.com/