What is a Notice of Right to Cure Default (real estate). I filed bankruptcy 2 years ago it was discharged in 2010. We have a second mortgage on our home. We paid it and the first all through the process. We have had some un-expected expenses and are behind 2 months on the second. I recieved the notice and they are claiming they can foreclose.
Country relating to Question: United States
State (if USA): Arizona
Nothing so far...thinking of contacting the bank but don't want to re-affirm this debt.
Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
IF you reaffirmed on the debt, then the debt survived the bankruptcy.
If you don't pay, they could foreclose, if financially feasible for the 2nd to do so.
The lien stays on the home regardless if it was reaffirmed or not.
You should catch up if possible to avoid any foreclosure action.
If you have not reaffirmed during the case, it's too late now. the debt is discharged, but their lien stays on the home until paid off.
Do you have any questions?
I guess I don't understand discharged. I'm no longer liable for the debt. Can they supersed the first mortg to foreclose?? We are current on the first.
Also, they have offered to see if it qualifies to be modified. If we sign a new contract and end up loosing the house will we still owe the amount of the second?
bankruptcy discharges the debt, but the mortgage lien will stay on the title until paid, or sold and paid off
the lender can foreclose, but only will if there is enough equity to pay the first off, pay off foreclosure costs and enough to pay the loan that they hold.
if you modify the loan, you may be renewing your obligation to pay, yes.
any other questions/
did you have any more questions?
the house is under water 50,000.00. There is no equity. So I assume the is a scare tactic as I'm behind 150.00. So my question to you si should I be afraid I come home and the door is locked?
if you did not reaffirm, they cannot collect, but they can send balance statements and right to cure default. Lenders have to provide home owners with certain notices, and this may be just that. if they were to foreclose, they would have to go thru proper channels. I wouldn't expect them to take much action
Any further questions? If not, please click accept to close the question. Thanks.
Better Business Bureau. 13 Years bankruptcy experience. Member of the Chicago Bar Association
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