Legal Question in Real Estate Law in California

Re: Keeping a home after filing a ch. 7 BK

There is no simple answer to your question. Ask your bankruptcy attorney or consult with a bankruptcy attorney. I do not presently practice bankruptcy law, but the second may have become unsecured if the value of the house was low enough that the second would not have been paid if the house had been sold.

Re: Keeping a home after filing a ch. 7 BK

You can elect to retain your home, however, you will have to immediately make up all arrearages on both mortgages and then make current payments. The second was discharged, however, they retain a lien on your home, and you have two options - either repay them, or they will foreclose. Though they lose the right to pursue you personally for the debt, they retain their security interest in the home, and can foreclose for nonpayment of the mortgage.

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