Legal Question in Bankruptcy in Kentucky
release of 2nd mortage lien
company that held 2nd mortage on my home has went bankrupt,I filed ch. 7 three years ago did not reaffirm on 2nd mortage.I can not sell my home till I get lein from 2nd mortage released. did not know lien was not released can not sell home with lein,HOW do i get release
1 Answer from Attorneys
Re: release of 2nd mortage lien
Unfortunately for you, liens survive bankruptcy unless
avoided in the bankruptcy. The bankruptcy discharged your
personal indebtedness toward the second mortgage holder, but
did nothing to eliminate the lien. So when you sell the house,
the second mortgage holder can collect on the lien, but cannot
collect any deficiency from you personally.
Had you reaffirmed with the second mortgage holder, you would be
personally liable for any deficiency.
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