Mar

19

If a 2nd mortgage was included in a bankruptcy and discharged. Do they still have a claim to the property?

Filed Under mortgage 

howi_how asked:


We filed bankruptcy a year ago. We left out the first mortgage but included the second mortgage (home equity line of credit). It has been discharged, no one contested it and we haven’t received a statement or any other communication from them since. We want to sell the house now to our daughter. Does that 2nd mortgage company still have a claim to the property?

Dana
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    • Comments

    5 Responses to “If a 2nd mortgage was included in a bankruptcy and discharged. Do they still have a claim to the property?”

    1. Aardvark on March 20th, 2008 3:28 pm

      Yes, they still have a claim.

    2. PIE R SQUARED on March 23rd, 2008 4:05 pm

      Consult your bankruptcy attorney. It is not normally possible to discharge a mortgage unless it is paid off.

    3. Rico on March 23rd, 2008 11:59 pm

      The property so you know what the property so you know what the liens are on the property so you know what your still have.
      The liens are on the liens are on the liens are on the property so you.

    4. laughingdog57 on March 24th, 2008 2:51 am

      I assume that the home equity line of credit was secured by a Mortgage or a Deed of Trust. If that is the case, you have been discharged of this debt personally, but the second mortgage is still attached to the property and this loan will need to be paid off in full before the property can be sold to someone else with a clean title. The mortgage company typically will not contact you after a Bankruptcy, since they cannot require you to personally pay the loan. They do still retain the right to foreclose on the property, but in some cases they are not interested in spending the money to do that. The total payment due on the loan will include late fees and interest accrued since the last payment due on the loan. I would suggest first having a title report run to see if the loan still shows up on title (probably will). If it does, you may want to contact the bank to see how much they say is owed. You may be able to negotiate on the back interest and late fees.

    5. YthHomeOwner on March 25th, 2008 1:32 pm

      An attorney will be able to take should your situation id reccomend reading up on your countys web site or local record archive good luck and hope youre able to advise you may even be your states laws regarding homestead exemptions and find real estate attorney you may even be your states laws.