Ch 7 BK & settling 2nd mortgages

[calgirl67]

We are over $200k underwater and plan to settle our 2nd & 3rd mtgs with Wells Fargo eventually. We have filed Ch 7 Bk and stopped paying on the 2nd & 3rd months ago. They about to charge off. We are in "final review" (whatever the hell that means) for a HAMP mod on our 1st with WF.

Some people have been saying the BK attorneys they are consulting are telling them flat out they have to surrender the house if you are not paying on your mortgages. This is depending on if your house is underwater of not.

The myth of "you have to surrender the house if you are not current" is not true. What it means is if you are behind on payments, file a Ch 7, then the lien holders (ie: 1st & 2nd mtg holders) can petition the court to have the automatic stay lifted and foreclose on the property as the debt is secured.

In the case of the 2nd mortgage, if you have zero equity for them to foreclose, the debt is in essence unsecured. Ch 7 does not have the ability to petition for a lien strip on an unsecured debt.. But if you stop paying they cant foreclose 'cause they have no equity.

Get another lawyer that is not too lazy to look into it and advise you accordingly. When I was first interviewing BK attorneys, because I was so far over median, I even had a few tell me straight up "you have to file Ch 13" which I knew was crap... LAZY attorney. I'm going to post this is a new thread on the WF board. Good BK attorneys cost a lot more than the mill attorneys. There is a reason why!

[annpsych]

Has anyone gone directly to their investor? I am finding that wells fargo is very difficult to deal with and my investor is freddie mac? I am wondering if this is possible? If anyone knows anything on this subject would they please post it? Thanks!

[1928tudor]

Calgirl67--Are you in California? If so could you please PM me the name of your BK attorney? Many Thanks!