Bankruptcy and Second Mortgage on Home
My question involves bankruptcy in the state of: Iowa
My husband and I filed ch 7, last Dec. We were able to keep our home through the homstead. We have our original first loan, and then we have a second on the house. The company that holds the second on our house, ALSO held a car loan for us which was discharged, and the vehicle was returned to them. We have continued to make both our home payments every month on time. We found out that the company holding the second, and whom had the car loan, was in fact taking all of our payments and applying them to the car loan that was discharged. We have spent numerous hours on the phone trying to get this straightened out and have them apply a years worth of payments to the correct account.....we are still trying. They are not being very cooperative, obviously.
My question is, we are just so frustrated with trying to deal with them, and their unwillinginess to help us. We were wondering, if we stop making the payments on the second, can they force the sale of our home? I understand they could put a lein on the home, but we do not want to be forced into selling our home.
Any help is very much appreciated. TIA
Re: Banrkuptcy and Second Mortgage on Home
Have you talked to the lawyer who assisted you with the bankruptcy? If the car loan was discharged and they're not respecting the order of discharge, a threat of contempt proceedings may be enough to get them to clean up their act.
Re: Bankruptcy and Second Mortgage on Home
Thank you for responding Mr. Knowitall.
Yes, I did in fact contact our bankruptcy lawyer. He said there wasnt anything he could do unless I got a letter from the company stating they were applying our payments to the discharged account.
Well since I cant get the company to send me anything at all, and I get the total run around on the phone with them, I dont know what else to do.
That is why I was wanting to stop making the payments to them to see if it would "jog" them into correcting the situation. I dont mind having them place a lien, if thats what they would do, but I do not want to be forced to sell.
I would have gladly reaffirmed this loan IF my lawyer would have asked....
So now I sit back at square one. Not to mention we "should" be getting our 1099 from them for our taxes, but since they have not applied the payments correctly, I wont be getting that either.