Second Mortgage Shop

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?

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.

Hello,
I have a question about a 2nd mortgage foreclosing in the state of Florida. This is a new mortgage, with only a couple payments being made by the buyers. They are behind on 1st and 2nd mortgage by more than 2 months. I live several states away and everything was done through a Florida attorney by fax and phone calls and never met the attorney face to face and now I am finding out a lot of things were “hidden” from me by the attorney including a bad credit history by the buyer that was never disclosed. Is there anything that can be done?

The 1st mortgage holder called me and told me he was going to foreclose on the 1st mortgage and I would lose everything which includes the property that I sold and the mortgage that I hold.
The property is worth about 7000.00 more than the 2 mortgages combined would come out to.

I would like to know how can I fight this. 1st mortgage holder stated that I could buy his 1st mortgage out in full and pay his attorney fees.
What is legal and how can I get what I am owed? I do not want the property back but would like to have at least some of my money that the debtors owe to me from the mortgage.
This is the 1st and last time that I will ever hold a 2nd mortgage. Never knew the risks involved, nothing was disclosed to me when I sold it and took on the 2nd mortgage.
Thank you for your answers in advance.

I agree with the above post you need to go back to the lawyer who handled your sale; but in general obtain a lawyer, it seems by your post your where not properly explained the potential liabilities of holding a second note

That said, if the senior note i.e. the first lender is seeking to foreclose on the property, your options to protect your interest in the property is limited to buying the first note basically, since you are second in line so to speak

my wife just handed over mounds of debt (through her gracious efforts of assisting her mom…she has left) ican not pay the monthly payments…I had great credit before. She took out a 2nd mortgage in an attempt to pay off…my mortgage was an adjustable rate that just went up costing me $400/month…creditors are calling and i dont know what to do…I want to make everything right?

Chapter 13 BK may be the best bet to keep the house. Isn't marriage grand?

We paid off a 2nd mortgageforeclosure before it went through. We continued to pay on our first mortgage with no problem. The attempted forclosure was not on our credit report until we refinanced with a new mortgage company. Is this fair? It looks suspicious that it only appeared on our credit after we refinanced with a new company. We understand that business is business but it seems that they were fine with everything until we pulled our mortgage from them and went with another company.

Well, you were late, so the info is accurate.

It is probably just a coincidence… sometimes it takes time to get stuff posted onto a credit report.

i wanted to pay off only the 2nd mort (home line of credit) and my friend told me that both loans gotta be paid at a same time or something gets violated etc. i don't get it. i wanted to pay off 2nd loan and refinance with 1st (big) loan to match my current value
he said i should put down the money to refinance etc. i'm confused now. what's the deal…

Your friend doesn't know what he's talking about. You can pay off the second anytime you want. I've never seen a second lien with a prepayment penalty–they're illegal in most states. You don't necessarily need to put money down to refinance, but there will be costs involved (closing costs). Those are usually rolled into the new loan. Usually the only out-of-pocket expense for you is the appraisal–about $325.

Rick
http://www.fairwaymortgagelending.com