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  1. #1
    Join Date
    Feb 2014
    Posts
    20

    Default Second Mortgage in Ch 7 Over 10 Years Ago

    My question involves bankruptcy in the state of: WI

    Bankruptcy discharged in 2007, lawyer threw in my 1st and 2nd mortgages and did not reaffirm which I didn't realize until years later.
    I have been paying the first mortgage on time as I modified my mortgage with them during the bankruptcy if just was never reaffirmed. 2nd mortgage stopped sending me anything requesting payment. Maybe a year ago I started getting a generic invoice from a completely different company for 2nd mortgage, assuming it was sold. Both mortgages do not show up on my credit report.

    Is there a statute of some sort stating after so many years of not trying to collect the mortgage can be cancelled or something to the sort? Someone mentioned to that affect. If not, is there anything else I can do to try to get rid of it besides pay? LOL Just curious.

    I was thinking of trying to refinance so it would show up on my credit report and possibly try to lower the payment for my first one but am assuming I would have to let my first mortgage know about the 2nd one in order to refinance? Or can I just try to refinance my first one only and not even tell them about it?

    Thank you for your help in advance. I have tried googling and researching but wanted to post questions here also.

  2. #2
    Join Date
    Sep 2010
    Posts
    19,891

    Default Re: Second Mortgage in Ch 7 Over 10 Years Ago

    You shouldn't be subject to the second mortgage loan anymore if it was properly discharged in the chapter 7. They are enjoined from trying to collect it anymore.

    HOWEVER, the lien does NOT go away in the bankruptcy (the Supreme Court reconciled the one competing circuit court ruling to the contrary a while back). You will not be able to refinance or sell unless the second mortgagee either gets paid off or agrees to it (or in some odd circumstances that your new mortgager wants to be secondary to the previous lien).

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