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Chase Bank Charged Off My Second Mortgage. – Dwight

“Dear Steve,

I live in Indiana. Filed Chapter 7 Bankruptcy in March 2010, finalized in September. House market value was set at $170,000. Was able in late September to finally modify my primary mortgage to continue it (owing $157,000). Was trying to work with Chase Bank on my second mortgage ($43,000), they sent me a letter dated October 18 that they wanted to work with me on a loan modification and told me I had 30 days to contact them. I recieved the letter by certified mail on October 30. I called to start the process on November 2 and was to the loan had been charged off on October 29 and no one will explain why.

What are my concerns at this point? What should I worry about? I know they cannot recover from me personally because of the bankruptcy, but do you think foreclosure is a concern?

Dwight”

Dear Dwight,

Was the second mortgage included in your bankruptcy and discharged at that point? I need more information to help advise you. Please post your response in the comments below.

Sincerly,
Steve

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

6 Comments

  • I know they can’t collect from me personally but don’t they still have a lein and wouldn’t they still have the option of foreclosure?

  • Dwight,

    If it was discharged in the bankruptcy then that was that. Your obligation for the loan ceased and they have no more authority to attempt to collect payments from you. There is no need to modify the loan since it was discharged.

    Steve

  • Yes, Steve it was included in the bankruptcy and discharged. I tried to work with them and they just kept blowing me off until that “offer” they made me and didn’t follow through with.

  • Yes, Steve it was included in the bankruptcy and discharged. I tried to work with them and they just kept blowing me off until that “offer” they made me and didn’t follow through with.

    • Dwight,

      If it was discharged in the bankruptcy then that was that. Your obligation for the loan ceased and they have no more authority to attempt to collect payments from you. There is no need to modify the loan since it was discharged.

      Steve

      • I know they can’t collect from me personally but don’t they still have a lein and wouldn’t they still have the option of foreclosure?

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