Refinance of Mortgages

[socialyankee]

My question involves real estate located in the State of: Wisconsin

When i bought my house in 2004 it was an 80/20 mortgage. I claimed bankruptcy back in 2008 and my lawyer threw in both my mortgages without reaffirming either mortgage. I realized this years later. They were both discharged and i continued to pay the first (80) mortgage.

I want to now refinance. It doesnt show up on my credit at all and I want to lower my payment. If i refinance should i try to find out the balance of the 2nd mortgage and refinance that too? Should I ask them if they would take a deal since no payments have been made in over 10 years? I have received no letters, statement, nothing from them for years! Would they take less than what is owed if its through refinancing and not cash?

If i refinance just my first, will my 2nd mortgage be able to then foreclose because they will be in the first position since their loan is older?

I just want to start with a clean slate and if I am going to have to pay my 2nd mortgage anyways why not just finally start? Idk what to do. I ak afraid so much interest has accumulated I am effed with the 2nd mortgage.

[PayrolGuy]

You asked this message previously and received an answer.

https://www.expertlaw.com/forums/sho...d.php?t=246595

[socialyankee]

That was more about if the 2nd mortgage can collect which never was answered. I dont even know who holds my 2nd mortgage as I have had nothing sent to me in over 10 years. Someone mentioned after so many years they can't collect anymore.

Wasn't sure if anyone else could add to the answer about refinancing not the bankruptcy portion.

Thanks for your help.

[flyingron]

As I told you the first time around, you will not be able to refinance until the second is paid off. Even though you are not personally liable for the loan anymore, the mortgage remains attached to your property. Nobody will issue you a new mortgage (or buy the property) unless all the encumbrances (both the first and second mortgage) are paid off in the process (or earlier).

The mortgage security interest never goes away. There's no lien stripping on chapter 7s.

[pg1067]

I claimed bankruptcy back in 2008

Chapter 7 or 13?

my lawyer threw in both my mortgages

I assume this means nothing more than that the mortgages were listed on your schedule of secured debts, as they were legally required to be. Correct?

They were both discharged and i continued to pay the first (80) mortgage.

Well...that's not likely. Your personal liability under the promissory notes on which the mortgages were based may have been discharged. However, unless you made appropriate motions to strip the mortgages (which you probably only could have done with the second), the mortgages still encumber the property, and you won't be able to sell or refinance without dealing with them.

If i refinance should i try to find out the balance of the 2nd mortgage and refinance that too?

That's one option, but it may not be the best option.

If i refinance just my first, will my 2nd mortgage be able to then foreclose because they will be in the first position since their loan is older?

I'm not sure who "they" are, but no lender is going to give you a refi loan unless both mortgages are dealt with.

I suggest you confer with a local real estate attorney. One that has a good understanding of bankruptcy law would be best.

[flyingron]

Chapter 7 or 13?

From his other thread, chapter 7.

Indeed the mortgages were discharged, the liens from them were not. He reaffirmed the first.

[pg1067]

As concerns the other thread that you started on this same subject, you might consult with a local surety bond agent to see if you might be able to bond around the second mortgage for which you no longer have any personal liability.

From his other thread, chapter 7.

Indeed the mortgages were discharged, the liens from them were not. He reaffirmed the first.

How many threads is this poster going to start on the same topic? Sigh....