Legal Question in Bankruptcy in Maryland

In April, we filed for Chapter 7 Bankruptcy. We had fallen behind on our mortgages, primary through Chase, secondary through Green Tree. We told our lawyer that we would surrender our home, because we were so far behind on the first mortgage and couldn't save enough to get the arrears caught up prior to filing. We've already had our 341 meeting, and were just made aware of the Emergency Mortgage Loan program. We would like to take advantage of that program if we are eligible, however, our question lies with the second mortgage. We have no idea what Green Tree has done with the 2nd. We don't know if they have charged it off or placed it into collections, since it has been several months since we got a statement from them. Since we are not re-affirming the mortgages in our bankruptcy, what would happen to the 2nd mortgage after the discharge (if we are able to take advantage of the loan program)? Later on down the road, if we decided to sell our home, and we haven't made any payments on the second mortgage, would they have any rights to the property or prevent a sale from occurring? We owe 88k on first mortgage and 15k on second mortgage...the property assessment values the property at 90k.

Thank you.


Asked on 5/11/11, 6:14 pm

1 Answer from Attorneys



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