Legal Question in Bankruptcy in Michigan

We filed chapter 7, retained the house but the second mortgage was discharged due to it not being recorded.Bank of america bought our loan when countrywide filed bankrupcy. They are now trying to foreclose due to non pmt of second mortgage.What do we do?


Asked on 7/19/10, 10:17 am

1 Answer from Attorneys
Jesse Sweeney Sweeney Law Offices, P.L.L.C.

Well did the trustee set aside the mortgage because it was unrecorded or did your attorney? Typically an adversary proceeding must be filed to discharge an unrecorded mortgage. If that was not done, the underlying DEBT is discharged, but not the mortgage. You can file a Chapter 13 bankruptcy to strip the lien of the 2nd mortgage if the home is worth less than the amount of the first mortgage. Contact me at 248.719.5663 to discuss further. I have an office in Brighton.

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Answered on 7/29/10, 6:30 pm


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