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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 19296
Experience:  B.A.; M.B.A.; J.D.
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hi, i have a 2nd mortgage with us bank for 60k @ 7.8% they

Customer Question

hi, i have a 2nd mortgage with us bank for 60k @ 7.8% they will not work with me to lower my 434.00 per month payment. can i file bankrupt on this mortgage.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 8 years ago.
How much do you owe on the first?

Are you current on it?

How much do you make a year?

How many people are in your household?
Customer: replied 8 years ago.
<p>218,000.00</p><p>yes</p><p>35k-50k</p><p>wife and 3 year old daughter</p>
Expert:  Phillips Esq. replied 8 years ago.
I pushed the button too fast...

How much is the house currently worth?

Do you have any other debts?

If so, just a guesstimate of the debts.

Customer: replied 8 years ago.
230-320k big swing due to forecosures in area.

credit cards approx. 25k

Expert:  Phillips Esq. replied 8 years ago.

Thanks for the quick response once more.

Unfortunately, because you have quite a bit of equity on your property at this time, you cannot file bankruptcy to get rid off the second mortgage. Had it been that your mortgage was much higher than the current value of your home, I would have recommended a Chapter 13 to strip the second loan because the second would have been totally unsecured if your house was worth $220,000.00 or less. Right now your house value of $320,000.00 is greater than the two loans on the house $278,000.000. So, if you file, you cannot get rid off the second because it would still be totally secured by your house.

The better solution for you now is to keep trying to work with the bank to see if they will finally turn around and do a loan modification for you.

All the best,

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