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, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

In Arizona, is a 2nd mortgage lienholder entitled to request

This answer was rated:

In Arizona, is a 2nd mortgage lienholder entitled to request distribution of excess proceeds from trustee sale foreclosure by 1st mortage when the trustee sale occured after filing of Ch 7 bankruptcy and before discharge, and credit report shows 2nd mortage charged off prior to bk and updated with loan discharged in ch7 bankruptcy?

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

The debtor's personal liability is discharged by a chapter 7 bankruptcy. However the lien remains on the real property. Therefore in a trustee sale, the excess over the first mortgage would be payable to the junior lienholder prior to any proceeds being paid to the prior owner.
Ellen and other Bankruptcy Law Specialists are ready to help you