Can this happen in bankruptcy?

January 7, 2007 10:24 PM

If 2nd Mortgage gets discharged in bankruptcy, can payment still be made to keep home?

Asking for brother in law, and I know very little about these things. Can one can keep a home under these circumstances? I accept all legal disclaimers on the answers and of course they will consult a lawyer if this moves forward, just needed a general idea of this particular possibility.

posted by swiffa to work & money (4 comments total)

Location?
posted by brain cloud at 11:14 PM on January 7, 2007

Massachusetts is the location.
posted by swiffa at 5:54 AM on January 8, 2007

Was the bankruptcy lifted? In Texas, if all the delinquent payments covered under the bankruptcy are removed from the Chapter 13 plan, you still can work directly with the mortgage company to set up a payment plan (commonly called loss mitigation) in order to keep the home.
posted by megancita at 7:25 AM on January 8, 2007

Bankruptcy has yet to be filed. One of the factors they are considering is whether they would lose the home if they include the 2nd mortgage in the bankruptcy, yet still make payments.
posted by swiffa at 11:11 AM on January 8, 2007