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Posted Feb 10th, 2012
We filed bankruptcy in June of 2010 and did not reafirm our first or second mortgage. We retained
them and have continued to pay both loans.

Additional Details:
My question is, because the second mortgage was subordiated to the first mortgage prior to
bankruptcy can the second mortgage forclose on us if we did not pay it? The two loans combined are
underwater as far as trying to sell the house. Is there a way out of the second mortgage?
Legal Topic Area: Bankruptcy in OH

If your bankruptcy is completed, then any creditor secured by your real estate can foreclose on it if you default on the Note and Deed of Trust. As far as "getting out of" the 2nd mortgage, I'm not sure what you mean. The debt was presumably discharged in your bankruptcy case (you don't state what chapter you filed or the status of your bankruptcy), so you can just walk away from the property, let them foreclose and owe nothing further.


Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

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Answered on Feb 10th, 2012 at 3:09pm