Second Mortgage Charged Off

jkim2816

LoanSafe Member
Sep 30, 2010
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I purchased a house with a 90/10/10 with the second being a heloc. When I filed chapter 7, the heloc was included and the lender told me that they considered it a charge off even though they still have a lien on the title. Can the lender start foreclosure?
 

Jzone

LoanSafe Member
Jun 20, 2017
151
16
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I purchased a house with a 90/10/10 with the second being a heloc. When I filed chapter 7, the heloc was included and the lender told me that they considered it a charge off even though they still have a lien on the title. Can the lender start foreclosure?
Check your credit report. It will probably say "included in bankruptcy" and not charge off. Yes, they can start a foreclosure, but unlikely. They cant collect on the debt, but still have a lien, which they can enforce. However, in order to foreclose, the second mortgage holder also has to pay off the first mortgage holder. Unlikely, if you are current with the first.