I apologize in advance for the short response. I am currently away on vacation with limited internet but wanted to give you an answer as soon as possible. Steve
Michelle
“Dear Steve,
I have a 1st and 2nd on my home. The first loan with Chase is 315K and was modified from 7.25 to 4.25. I have since lost my job after 6 years and now on unemployment. My 2nd loan is for 100,000 and I could not pay it. It is now charged off. The 2nd loan was sold to a collection agency and I have let them know that I cannot pay them but I pay the 1st loan and that is all I can afford with unemployment. Should I file for bankruptcy or can the 2nd loan do anything to me even though my obligation is to the 1st loan first?
Should I file for bankruptcy or can the 2nd loan do anything to me even though my obligation is to the 1st loan first?
Michelle”
The Answer:
Dear Michelle,
Well right now you are sitting in the middle. The second loan may have “charged off” but that does not mean that it is anywhere near gone. I would suspect that the second loan was secured by the property and a lien still exists on your home. You would not be able to sell the house without clearing that lien.
It sounds like the second mortgage company sold your loan on to a bad debt buyer. Collection activity will begin again but probably tougher this time.
The owner of the loan can always foreclose on you if they wanted to pay off the first loan. You are not out of the woods on this, just in a small clearing.
You should go and talk to a local bankruptcy attorney and come up with a plan to address this situation. It might feel like it is resolved, its not.
