Legal Question in Bankruptcy in Illinois

I filed for bankcruptcy in 6/2009, at the time I reaffirmed my first mortgage. My intention was to do the same with my second mortgage, though the never sent anything in. Unfortunately I am paying for a house that I owe 223,000 on and is probably only worth 149,000 today. My first is at 138 and the second is about 85. I did recieve a full discharge, am I obligated to this second still and what would happen if I couldn't pay it anymore? Would the bank really want to foreclose since they would have to buy out the first and never recover their costs? Is there a period in which I can cancel my reaffirmation. I was approved for the house with a much higher income than I have today.


Asked on 1/28/11, 1:27 pm

1 Answer from Attorneys
Brian D. Lerner Law Offices of Brian D. Lerner, A Professional Corporation

Hello:

Your affirmation is irrelevant. It is a secured loan. At this point, you did not strip the second and whether you can at this late stage is questionable. However, if you do not pay, nothing would happen as they could not foreclose without the 1st mortgage foreclosing and they cannot come after you for the deficiency as that was protected under the bankruptcy.

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Answered on 2/08/11, 4:19 pm


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