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Since you file a Chapter 7, and if the second was not discharged, then the 2nd Mortgage or Heloc still remains as a lien on the property. The reason being is that you signed note promising to pay, and they have a deed of trust or trust deed on the house which is a lien on the house.
Sun Trust can foreclose the lien, but in order to do so it would have to be profitable to proceed with the foreclosure, which at this point it probably is not. Remember, the bankruptcy removed the first lender's right to sue you personally on the notes.
So you can legally, without worry of any recourse make a settlement on the outstanding balance, for a fraction of what is owed on the second. Once this happens, that will remove the lien from your property and legally remove the remaining balance.
With regards ***** ***** Dodd Frank of $5,000 dollar reduction promised. The Dodd Frank law does not have an specifics with regards ***** ***** specific reduction. Any reduction in loans such as yours, is purely discretionary by the Bank. Unless they gave you something specific in writing, I would not rely on the promised $5,000 reduction, because it may never materialize.
So you should negotiate a reduced payment with Sun Trust to remove the lien form your property, but don’t rely on the $5,000 proposal unless guarantied in writing.
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