Does the bank have a claim on my house? 9 Answers as of February 29, 2016

We filed for Chapter 7 Bankruptcy in 2013 and it was discharged in 2013. At the advice of our lawyer we reaffirmed our primary mortgage during that time. We didn't reaffirm the second mortgage. Our second mortgage is a 15/30 loan with a high APR. I recently tried to refinance the loan to more favorable terms and was told they couldn't because it was dismissed with the bankruptcy. Last year it was on my credit report as discharged in bankruptcy and this year it doesn't even appear. I received no paperwork from the bank stating a change to my account with them. I am wondering if they have a claim on my house? What are my options if they do?

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Ronald K. Nims LLC | Ronald K. Nims
You need to check whether they recorded a release of mortgage. In Ohio, most county recorders have online access to records. Go to the records website for your county and check the RECORDS SEARCH or DOCUMENT SEARCH or ACCESS TO RECORDS (unfortunately, each of the 88 counties has a slightly different website). If you live in a county where the records aren't online. FIRST - vote to dump that clown recorder in the next election. Second - go to the courthouse and tell them what you want.
Answer Applies to: Ohio
Replied: 2/29/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
Mortgages can be discharged, not dismissed in a bankruptcy. But the lien portion of the mortgage allows the creditor to foreclose if you do not pay, so even though you do not personally owe the debt, you have to pay if you want to keep the property. Sounds like who ever you went to for a refinance is dumber than a rock, and since you cannot fix dumb, I would look for another lender.
Answer Applies to: Nevada
Replied: 2/29/2016
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
First and foremost: you: you should have an experienced bankruptcy lawyer. If you do, ask him or her. Generally a bankruptcy does not affect the basic mortgage itself: that is, the mortgage, or lien, remains on your property, but your obligation to pay the note (which you also signed about the same time you signed the mortgage) is discharged. It is possible that you second mortgage could have been determined to be unsecured, if the value of your home was less than the balance due on your first mortgage. It is also possible that you could reopen the case to permit the court to entertain such a motion. To do this right, you should retain a lawyer skilled in bankruptcy to advise and represent you.
Answer Applies to: Wisconsin
Replied: 2/29/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
They still do have a claim against the house (but not against you). I recommend you report your payments to the credit reporting agencies and see another bank about refinancing.
Answer Applies to: California
Replied: 2/29/2016
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
There is likely a lien recorded by the lender. This lien still exists even though the personal obligation was discharged in your chapter 7 bankruptcy. You can go to the county recorder's office and view all the liens that exist on the property. Assuming it is there, then go see a knowledgeable local bankruptcy attorney who can evaluate your eligibility for a chapter 13 to strip off the lien. If the lien is unsecured (the value of the house is equal to or less than the first mortgage) it can be stripped in a chapter 13 but not a chapter 7. If that won't work then you will owe the money. Depending on your circumstances, you might be able to get another lender to loan money to pay it off.
Answer Applies to: California
Replied: 2/29/2016
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Secured creditors are still secured in the collateral despite the filing of a bankruptcy. So your second mortgage still holds a lien on your house that you must satisfy. Because you didn't reaffirm it, the second mortgage lender cannot pursue you for any deficiency if the house is foreclosed upon.
    Answer Applies to: Nevada
    Replied: 2/29/2016
    Stephens Gourley & Bywater | David A. Stephens
    Unless the deed of trust was released by the second or stripped by the court, the lien is still in place on the house.
    Answer Applies to: Nevada
    Replied: 2/29/2016
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    The lien is still on the house, you can attempt to file a motion to reopen your case to file a reaffirm then try to refinance.
    Answer Applies to: Florida
    Replied: 2/29/2016
    The Law Office of M Grater LLC
    The Law Office of M Grater LLC | Mark O. Grater
    Both mortgage Companies can foreclose on your property if you get behind on the payments. If one of them does foreclose, the first mortgage can still sue you for money since you reaffirmed with them. The 2nd mortgage cannot sue you for money damages since you did not reaffirm.
    Answer Applies to: Connecticut
    Replied: 2/29/2016
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