Legal Question in Real Estate Law in Florida

Foreclosing / bankruptcy with 1st and 2 nd mortgage

Please can someone help me? I am buying a home with a mortgage and a home equity mortgage. Recently I have been out of work due to illness. Both mortgages are behind. The 2nd mortgage is letting me pay each month although I am 2 months behind but my 1st mortgage will not accept any payment unless its the full amount due (I cannot afford that).I have placed the house up for sale,although no offers at this time.If I file bankruptcy or let the banks forclose, will that eliminate both mortgages? Thank you for your help!


Asked on 10/07/02, 5:05 pm

1 Answer from Attorneys

Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: Foreclosing / bankruptcy with 1st and 2 nd mortgage

Bankruptcy does not eliminate the mortgages or otherwise permit you to stay living in your home without paying its related expenses, otherwise, folks would simply take out huge mortgages and then declare bankruptcy as a method of escaping liability for the mortgagee. You have a serious problem. You might conceivably obtain a new first mortage that will enable you to payoff your mortgage and equity line, but then you would naturally need to pay your new first mortgage and it is unlikely you will get one (or at least one with a competitive rate) since you are unemployed and have a history of non-payment of mortgages. Seek the advice of a lawyer and/or credit counseling professional before things get worse. Good luck.

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Answered on 10/07/02, 6:17 pm


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