Legal Question in Bankruptcy in Missouri

second mortgage

We have recently refinanced our home so we do not have any equity built up in it. We took out a second mortgage on our home to help with credit card debt. The amount is rather large. The second mortgage is with a different lender than our home is mortgage with. Will we lose our home if we file bankruptcy chapter 7. Thanks!


Asked on 7/27/02, 11:40 pm

1 Answer from Attorneys
Jim Van Dillen Van Dillen & Flood, P.C.

Re: second mortgage

The holder of the second mortgage has a lien which is not extinquished by the bankruptcy. The Chapter 7 cancells your obligation to pay the debt but the holder of the second can still start forclosure proceeding once you are discharged. Of course they would have to pay off the first to obtain title in their name after the foreclosure.

Their eagerness to foreclose will therefore be effected by the balance on the first mortgage. You can always offer to reaffirm the debt on both mortgages and under the circumstances the holder of the second would probably be eager to enter into a reaffirmation.

You will need to have your bankruptcy attorney analyze the situation and advise you as to the feasability of signing a reaffirmation.

Good luck.

JIM VAN DILLEN

Attorney at Law

(314) 645-8008; fax (314) 645-8016

[email protected]

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Answered on 7/28/02, 1:23 pm


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