Expert: Terry Leeders - 7/29/2009

Question
I filed BK7 in 2006 - I reaffirmed my 1st mortgage and included the 2nd in the BK.  The loan on the 2nd has been sold 3 times.  The first and second lender were very forgiving and jsut told me if I sell or refinance, the 2nd would have to be paid.  Now, the 3rd lender is demanding payment for the $$ in arrears on my 2nd mortgage and I cannot afford to make the payments. What can I do?????  I am 65 years old and have no equity. I owe more than what it is worth.  Please advise.

Answer
Since you did not reaffirm the debt, technically, they cannot collect on the balance.  They would have the right to foreclose, but with no equity, it is unlikely they would, as they wouldn't get the full balance owed.  You technically can sue them for violation of the discharge if they are indeed trying to collect.  You are right, they can't do much else, but the lien stays on the home until satisfied.