Can you include a 2nd mortgage in a BK and eliminate the debt. ?

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The house has a first of 750,000 and a second of 186,000 and it is worth about 725,000 can the lien be released on the 2nd.

You MUST include ALL debts in any bankruptcy. If they have a lien on the house, you can't discharge the lien without giving up the house. The second mortgage WILL NOT foreclose. If they did, they would have to pay the first mortgage to get title. That would put them $25,000 further in the hole than they already are.

0 thoughts on “Can you include a 2nd mortgage in a BK and eliminate the debt. ?”

  1. no as they will hav ethe right to foreclose even if the home has a value of $1. and not only will you have a bk and a foreclosure but you will also get a 1099 for andy balance owed once sold and then a judgment can be placed in your credit file and garnishment of wages and your credit will suck for years to come and you cannot buy again for not less than 4 years at this point and if things change even longer
    References :

  2. You MUST include ALL debts in any bankruptcy. If they have a lien on the house, you can't discharge the lien without giving up the house. The second mortgage WILL NOT foreclose. If they did, they would have to pay the first mortgage to get title. That would put them $25,000 further in the hole than they already are.
    References :