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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2863
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I have finished my Chapter 7 in October 2010.I have not had

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I have finished my Chapter 7 in October 2010.I have not had the money to pay for my house "starting in October". I have/had a 1st and 2nd mortgage and both were in the chapter 7 (It started in April 2010). I paid for both, the months until October 2010 and then the company went Bankruptcy .. all were lost as a job .. so I am living on Social Security .. USMC small Disability .. EDD. I could "Not" pay for the mortgages. And looking at being forclosure as a coming thing.

In March 2011 the 2nd mortgage has cleaned it, and I do not owe the 2nd. This has left me with just the 1st. The 1st HAS equity with no 2nd involved. Can I sell the house and keep the equity amount from a "Fast Sale" or regular sale as the 1st has NOT forclosured my house .. yet!
Hi and thank you for your question. In the future, you can request me to answer any further questions.
If you did not reaffirm the debts in the bankruptcy, and if the 2nd released their mortgage lien on the home, and there was no provision regarding any sale restrictions in the release of lien, then you can sell the property and keep any proceeds. Thanks for your question, good luck.
Terry L. and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Can the 1st Mortgage Company start forclosure to keep me from selling the house. As above the 2nd has dumped their 2nd and show my account as Zero on their statement.
The lender can always foreclose to transfer title. If you have a buyer, you can still sell before the foreclosure goes thru.
I understand the 2nd has a $0 balance, but that is different than releasing the lien. They will usually leave the lien on there in case there are proceeds from a sale or foreclosure. You need to obtain a release of lien before the lien on the home will come off. Without a reaffirmation the debt is discharged, but the bankruptcy does not take the lien off of the home.
Thanks for your followup, good luck.