Legal Question in Bankruptcy in Wisconsin

Yes, technically the 2nd mortgage holder retains their lien on the real estate, even if your personal obligation was discharged in bankruptcy. Perfected mortgage liens are not usually affected by bankruptcy, unless you hired your bankruptcy lawyer to bring an adversary lawsuit in bankruptcy court to remove the lien and then went on to win that case. Therefore, the second mortgage hold can technically take your house, although this would be difficult due to the presence of the first mortgage (assuming that there is a large balance due on the first mortgage which exceeds to home's value). All this being said, it might still be possible for your lawyer to now negotiate a settlement with the second mortgage holder to permit your closing, although it will be a much tougher negotiation now. You will probably need to pay them some sort of money settlement in order to close.

Answering this question does not make me your lawyer, but you can still post comments here for clarifications, etc. or contact me in person for same. You can also see past answers to similar questions on AVVO at http://www.avvo.com/attorneys/53401-wi-jay-nixon-1529181/answers.html?sort=recency . See 15 years of past answers at http://www.lawguru.com/answers/atty_profile/view_attorney_profile/jknixon, or go to . https://www.facebook.com/NixonLawOffices for more. Answers may contain attorney advertising materials.

Answering this question does not make me your lawyer, but you can still post comments here for clarifications, etc. or contact me in person for same. You can also see past answers to similar questions on AVVO at http://www.avvo.com/attorneys/53401-wi-jay-nixon-1529181/answers.html?sort=recency . See 15 years of past answers at http://www.lawguru.com/answers/atty_profile/view_attorney_profile/jknixon, or go to . https://www.facebook.com/NixonLawOffices for more. Answers may contain attorney advertising materials.