How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

I filed chapter 7 bankruptcy in 2009, My attorney said I couldnt

Resolved Question:

I filed chapter 7 bankruptcy in 2009, My attorney said I couldnt reaffirm the primary house debt. I had a first and second mortgage on my primary residence. Both mortgages were put in the bankruptcy. I am living in the house on a ride thru and making my payments on the first. I stop making payments on the second. I called and tryed to make arrangements to make payments on the second. The bank said they couldnt talk to me because the second was in the bankruptcy. It is now a year later and I recieved a1099c for the second mortgage for $55,000 which is correct. What does this mean? How do I ever get the bank ro release the second mortgage lien. I am hoping to continue to make the payments on the first and live here. I owe $150k on the first and the appraised value is about $152k Does this cancellation of debt mean I dont owe the second? Do I pay taxes on the 2nd?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.
Hello,


Thank you for your question.

It appears that the lender has written off the money that owe on the 2nd mortgage. However if the lender is not willing to issue a release of lien, you will need to file a quiet title action to avoid the lien on your property
Customer: replied 7 years ago.

FLAandNYLawyer

Do I have to pay taxes on the cancellation of debt? Can the second forclose on me ever?

What is a quiet title and what good will that do? I live in Mi

Expert:  Ellen replied 7 years ago.

Do I have to pay taxes on the cancellation of debt?

Not if this is a primary residence

 

Can the second forclose on me ever?

Yes

 

What is a quiet title and what good will that do?
A quiet title action may be able to avoid the lien on the property and prevent the 2nd from foreclosing at any time
Customer: replied 7 years ago.

Under what circumstances can they forclose? Say In years to come I want to sell what happens to the lien? If I only have a ride thur agreement why do I have any rights to the property in a quiet title?

Expert:  Ellen replied 7 years ago.
the quiet title action would establish whether or not you have any rights. Your argument that the lien should be avoided is based upon the fact that you received a1099c. If you don't avoid the lien in the quiet title action the lien will remain on the property and will be a cloud on the title when you sell
Customer: replied 7 years ago.

should i calll the bank and ask for a release of lien should i let time pass can they change their mind on the 1099c

When and why can they forclose

Customer: replied 7 years ago.

FLAand NYLawyer

Should I call the bank and ask for a release of lien Can they change their mind on the 1099c

If they write the debt off with a 1099c then how can they still come after me

Expert:  Ellen replied 7 years ago.

Should I call the bank and ask for a release of lien

You can

 

Can they change their mind on the 1099c

Yes

 

If they write the debt off with a 1099c then how can they still come after me

because the lien on the property still exists

Customer: replied 7 years ago.
In summary what does all of this mean
Expert:  Ellen replied 7 years ago.


It appears that the lender has written off the money that owe on the 2nd mortgage. However if the lender is not willing to issue a release of lien, you will need to file a quiet title action to avoid the lien on your property
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
thank you