MNTwinsfan
LoanSafe Member
How hard would it be to get a satisfaction letter from our second mortgage lender since it has been 10 years since we stopped paying on our second that was included in our BK 7?
Satisfaction Letter after BK 7
- Thread starter MNTwinsfan
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Survivor_IN
LoanSafe Member
This is still valid debt. You would have to challenge it under a quiet title. They can no longer collect after SOL. (Check your individual state law on promissary notes and statute of limitations to collect. Some deny collection after non-suit (foreclosure action) and non-payment of x years.) This means they can not defend or assert rights legally on the lien if you were to theoretically bring this legal claim. It is slim odds even though in your favor. (Judges don't like it.) The 2nd mortgage can (and will) wait until you sell or refinance and demand payment in full because you will need a lien release to do it.
Hi MNTtwinsfan,
A Bankruptcy Chapter 7 will not eliminate the debt, I've only seen that happen in Chapter 13's where the bankruptcy attorney actually included the loan (sometimes they tend to forget). The lien holder still has the ability to collect and I have had one recently that came very, very close to foreclosing. I was able to show the lien holder (in this case it was one called Linnear Mortgage, usually it's RTR or SLS) that we were almost ready to close and she removed the home from the auction, we closed the loan and satisfied the lien holder in full.
Right now many people have equity in their homes which is why you're seeing these 2nd lien holders become more proactive at finding ways to get their money back (usually plus interest). If you have any questions about satisfying the 2nd lien through a traditional refinance I'm happy to answer any questions you may have.
A Bankruptcy Chapter 7 will not eliminate the debt, I've only seen that happen in Chapter 13's where the bankruptcy attorney actually included the loan (sometimes they tend to forget). The lien holder still has the ability to collect and I have had one recently that came very, very close to foreclosing. I was able to show the lien holder (in this case it was one called Linnear Mortgage, usually it's RTR or SLS) that we were almost ready to close and she removed the home from the auction, we closed the loan and satisfied the lien holder in full.
Right now many people have equity in their homes which is why you're seeing these 2nd lien holders become more proactive at finding ways to get their money back (usually plus interest). If you have any questions about satisfying the 2nd lien through a traditional refinance I'm happy to answer any questions you may have.