Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
The bankruptcy discharges your requirement to pay the mortgage, either first or second, neither can collect on the debt.
The liens still remain on your home to secure the debt, and all that the creditor can do to collect is foreclose if they choose.
You would have to work with the lender to settle the account if they are willing to do so, to remove the lien.
It doesn't come off with bankruptcy, so you would either have to sell, short sell, or negotiate a settlement for them to release their lien.
The creditor will review your situation and values to determine if they wish to settle the account.
Remember, any settlement can be taxable as income to you, so talk to your tax advisor as well.
Thanks for your question, let me know if you have any others.
Thank you for your reply. You confirmed other input I have received. My lawyer indicated he "may" be able to have the lien released with no monetary settlement to the lender, so I will try and handle on my own to avoid a $1500 fee to my lawyer. Roger
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