Hi All I am in a similar situation. My homeowner filed bankruptcy after refinancing her home. In my case the second is owed $40k and the first is owed $134k. The house is worth $160k in its current condition but worth $195 after repairs of $5k. The first has refused to discount and the second says they will take $21k, based on the HUD estimate I sent them. This acceptance is conditional on a sale amount of $160k.
Do you have any ideas how I can get more equity, or how I can get the second to accept less?
If I offer less to the first can the second take action against me? I have not agreed to their counter offer. I had offered them just $1,000.
Posted by Wally on September 29, 2005 at 07:06:11:
My wife and I went through a bankruptcy two and a half years ago(We live in Florida). We were able to keep our house, and continued to make payments. We have recently began the process of refinancing our mortage, at a lower rate. We had two final judgements from two different finance companies that were inclcluded in the bankruptcy. Apparently they have placed liens on our home. Would these liens have been wiped out by the bankruptcy?
Re: Lien removal after bankruptcy - Posted by Aubrey Powell
Posted by Aubrey Powell on November 30, 2005 at 09:28:18:
My husband and I filed Chapter7 Bankruptcy in which I was discharged a few months ago. There was a lien posted to our home by an individual who we entered into a real estate transaction many years ago related to a property we purchased from her. We included her along with that debt in our bankruptcy and would like to refinance my home because we are in a forebearance agreement with our mortgage company and the payments have literally doubled, which is creating a hardship situation. Is it possible to have that lien removed and proceed with a refi that could possibly lower my monthly payments?
If these debts were not secured by your home to begin with, IE using your
home to secure the debt for say a new AC or room addition then I would
not think they are legal if this is your homestead in FL. Under the FL
constitution article X section 4 no lien can cloud a homestead property
unless it is a mortgage or tax debt.
Posted by John Merchant on October 04, 2005 at 09:54:13:
While a Ch 7 stops the creditors’ rights to make the debtor pay, it does NOT effect or eliminate the liens that were on the RE prior to Ch 7 filing.
Therefore, before selling any RE that one had prior to and at the time of the Ch 7 filing, and which had liens imposed prior to Ch 7 filing, those liens have to be satisfied and settled.
Conversely, a D/T foreclosure on a 1st lien D/T kills all subservient, secondary liens BUT does not kill the debts.
So it appears you’ll have to contact and make your peace with ALL the lienholders on your house if you want to sell the house.
While you might live in the house all your life, with those lienholders having no right to force your payment of their now-stopped debts, for you to sell will require your dealing with their liens.