Foreclosure On 1st What About 2nd
Filed Bankruptcy four years ago. A Second mortgage was taken out after the bankruptcy. Recently found out that first was not reaffirmed, so basically the house was included in the bankruptcy. Payments fell behind, unable to meet mortgage company's requests, so they will be foreclosing in the near future. What happens to the 2nd?
Are we liable for it since it was taken out after the bankruptcy? Or since the bank is foreclosing on the 1st is the 2nd automatically included?
The bank should name the second in the complaint, making them a defendant. This will clear the second from the title, but you will most likely still be liable for the debt.
[addsig]
Thanks Bill, yes you helped. Just wanted to know what direction we were heading.