Personal Bankruptcy Options after discharge

[BRYANW]

When I initially filed my Chapter 7 in the beginning of 2007 I had a 1st and 2nd mortgage which were slightly less than the market value of the home. I received my discharge and since then the second mortgage has gone completely underwater. I have received a modification on the first and am comfortable with the payment. The second has refused to modify and I can't afford the payment. 1. Being that they are completely underwater is it possible to re-open the bk to discharge the second? 2. What would be their recourse and would they pursue foreclosure if there is nothing there to recover?

 

[Theresagail]

No, once your Bk is discharged it is over-- You can file a bk cptr 13 and then they would have to modify the loan-- Did you sign reaffirmation papers on the 2nd? If not then this would be considered a unsecured debt now-- anythign that you were planning to keep myst have been reaffirmed under the eyes of the BK courts

 

[BRYANW]

Thank you, I signed nothing directly with the lender. Whenever I call they indicate they are not attempting to collect directly from me due to the 7 but that they could enforce their interest against the property. But without any equity, would this happen? Additionally, with all the consolidations that have happened, both mortgages are now under the umbrella of the same large bank. However they refuse to talk to each other. I only have been able to get a modification on the first.

 

[Theresagail]

Then the 2nd mortgage is considered a retain meaning once you default on it they are unsecured-- because they should have gone to the meeting of creditors or at least sent your attorney some reaffirmation papers so that you would be tied to that loan after your BK and if you defaulted.

However they are on your deed to the house so in order for them to release the interest in the home (once you sale or refinance) they will want to be paid @ that time--but I don't see how they can come after you since your were under a BK7 and now this is discharged and they did nothing to secure their interest in the property, but the security is on the deed. You should contact your bk attorney and see what he has to say about it.