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Can you refinance 1st & 2nd mortgages into one after bankrupcty is discharged?
Anonymous1 views3 answers
Filed Chaptr 7 2 yrs ago with the intention and assumption that my 1st & 2nd mort. were reaffirmed. Just found out they were not. A stmt of intentions was submitted in petition. Lender states is was attorney fault. The 2nd Mort.(equity) like a credit card- revolving acct with min. monthly pymt)didn't know pymt amnt due till monthly stmt. Since dischrg no stmt rec'd on 2nd mort. Don't know what to pay. 2009 my spouse lost his job so only paying 1st mort. The 2nd mort is now much more than 1st. Mortgages are chrged off on credit report. Can they be refinanced together now? No money to pay both. 2nd has high interest rate. Don't want to lose my home.
You should probably speak with an attorney about doing a Chpt 13. This would allow you to possibly cram down or force the lenders in the 1st and 2nd position to accept a payment plan or valuation (which would lower the payment from the principal owed to the value). You may be eligible in a 13 for an adversarial hearing to advance a lien strip on the second loan. The only problem is that the loans were discharged in the 7 and now you need to apply for a modification. There is language in HAMP that explicitly states that discharge does not preclude you from HAMP eligibility, nor waive the requirements of the loan servicer to evaluate your eligibility upon notice and request. Either way, they still have to foreclosure to regain possession and title of the property. I recommend you seek legal counsel.
Your Bankruptcy attorney was not responsible for making an offer to reaffirm your mortgages. If your mortage company was interested in having you reaffirm, they should have submitted an offer to you. It just ticks me off to have these stupid "customer service" people at the bank blame the attorney for something the bank didn't do.
Why would you want refinance your 2nd & 1st mortgages into one! It will just make it more difficult to pay this large mortage & you will have to pay for 30 more years! Yikes!
What is the value of your home compared to the amount you owe on the 1st? If the balance on the 1st is bigger than the value of the home, you may be eligible to lienstrip. For more info on lienstripping, visit my website on this topic.
My advice would be to review the facts with your bankruptcy attorney. Good luck!
Lewis Matthew RobertsBankruptcy AttorneyAltamonte Springs, FL ·
You got lucky that you did NOT reaffirm - since you are now having troubles paying the second mortgage.
On your credit report, the second mortgage should not be showing as charged off. It should show $0 balance - discharged in bankruptcy.
Any other reporting may be a violation of the Fair Credit Reporting Act.
As to consolidating into 1 mortgage, this is very unlikely. You probably owe more than the home is worth, so no other mortgage company will lend the amount to pay off both mortgages.
Has the second mortgage actually filed a foreclosure? It would be unlikely knowing they have to pay off the first mortgage.
