Legal Question in Bankruptcy in Georgia

I recently filed Ch7. I have a 1st & 2nd mortage and will not reaffirm either of them, but plan to " stay and pay". My home value has dropped and is roughly worth 40k less than the balance on the 1st mortgage. If I decide in the future to not pay the 2nd, would the mortage holder on the 2nd have to pay off the balance of the 1st in order to foreclose?


Asked on 7/29/11, 8:02 pm

3 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

No.

(And in doing your Chapter 7, you may have missed a chance to wipe out the Chapter 13 with a lien strip).

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Answered on 7/29/11, 8:09 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Yes. The liens remain on the home with the same priority, even though your obligation to pay is discharged. The second could not jump over the first and foreclose without paying the first lien.

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Answered on 7/30/11, 3:47 am


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