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Mortgage lien expiration

Discussion in 'Mortgages & Financing' started by Matthew Tillman, Oct 11, 2019.

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  1. Matthew Tillman

    Matthew Tillman Law Topic Starter New Member

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    Jurisdiction:
    Georgia
    In 2011, I filed Chapter 7 BK in the state of GA. At the time, I had a 1st & 2nd mortgage with the same lender. I chose to reaffirm the first mortgage but the second was included in the BK. Since that time, I have maintained the payments on the 1st with no delinquencies. The lender has not and could not, under the BK laws, tried to collect on the second mortgage. The term of the 2nd was for 15 years and would have reached maturity date in 2018. I was advised that the lien would "expire" after 7 years beyond the maturity date. If I don't intend to move before 2025, will this 2nd mortgage eventually expire? Can it be re-newed by the lien holder prior to expiration? Since the lender was restricted in collecting this debt under the BK laws, could they ever demand payment or a payoff to release the lien? Please advise. Thanks
     
  2. Zigner

    Zigner Well-Known Member

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    Fair enough :) - at the time I posted there were only two threads.

    EDIT: Ok, looking at the time stamps, there must have been three threads at the time I posted.
     
    Last edited by a moderator: Oct 11, 2019
    justblue likes this.
  3. zddoodah

    zddoodah Well-Known Member

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    That's not entirely accurate. The lender's security interests against your home -- both of them -- were not affected by your bankruptcy unless you made and the court granted a motion to avoid the second mortgage lien. Did you do that? If not, then both mortgage liens survived the bankruptcy. Your reaffirmation relates to your personal liability under the first mortgage. Therefore, while the lender can pursue you personally only for non-payment of the first mortgage, it can foreclose under either of the mortgage liens.

    Why did you add the words "would have"?

    I suspect that this is a statute of limitations on foreclosure. If that's correct, then the answer is yes, although the word "expire" isn't really accurate.
     
  4. zddoodah

    zddoodah Well-Known Member

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    And now they're all consolidated and all is right with the world.
     
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