Foreclosure from 2nd mortgage

[jba427]

A little background: We filed Chpt 7 last year, it was discharged in 6/08, but has not been closed yet. We didn't reaffirm the primary residence, but did keep making the payments on time each month until recently. We have since in the last 30 days quit making the payment on the second (Wells Fargo). We're also in the process of trying to do a modification on the first (Central Mortgage, seems to be going well so far).

Wells Fargo has told us it's company policy to not talk to anybody regarding an account in BK until the BK is closed, not just discharged.

We owe $338k on the first, and about $84k on the second. Our house right now is valued at about $360k.

My questions are these:

1. Will WF attempt a foreclosure from 2nd position on this with their end being almose completely under water? (Also, we're in Minnesota.)

2. In order for WF to foreclose, do they have to "pay off" the 1st position before the foreclosure process, or could they wait until after they took the property back?

Thanks

[ez101]

I am interested for answers regarding this as I am in Chapter 13 and am in arrears for the 2nd for about 12 mos. We have modified the first but now the 2nd is after us in bankruptcy. Can they foreclose on the 2nd over the first. My bankruptcy lawyer is forcing me to accept the repayment plan that means doubling the payments for 10 months of which I cannot afford those kind of payments.

[Moe Bedard]

you would need to ask the bk attorney this question...........