Chapter 7 Bankruptcy finalized in 2009 in Alabama (where I had moved to in 2008). House in Atlanta had 1st and 2nd mortgage. The house was surrendered in the bankruptcy to the lenders; however, the 1st mortgage company walked away and released the security deed back to me in 2012 (didn't know this until this year) and did not foreclose due to the debt amount versus the home value.
2nd mortgage debt was discharged in bankruptcy but the debt was sold to an investment/debt company through MERS from the original loan servicing company. The lien against the house for this 2nd mortgage debt still shows active on the title search. The 2nd mortgage debt has had no activity for 10 years. They have not tried to collect or foreclose.
Can the 2nd mortgage lien legally be removed from the house without paying off the debt given that they have not foreclosed within a certain amount of time after the last activity on the account?
It is likely still valid, and the amount of time will depend on the maturity date of the loan. Have a real estate lawyer take a look and they can give you an accurate response. Also, unless the security deed on the first mortgage was cancelled or they quitclaimed the house to you, it is likely still a valid lien as well.
The above information is general in nature. In order to obtain more specific legal advice upon which to base your important decisions, you should consult with an attorney in person and retain one of your choosing. Robert M. Gardner, Jr. Gardner Law Firm
You have to at least consult or possibly retain the right type of attorney to analyze your situation. Only a GA mortgage foreclosure defense and bankruptcy attorney has the expertise to prevent you from having more problems than you can possibly imagine. To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation. You need to retain the best mortgage foreclosure defense and bankruptcy attorney you can afford. You should not be restricted by geographic factors. Pick the best lawyer you can find and remember one rule: a good lawyer is generally never cheap, and a cheap lawyer is generally never good so don't choose based on price. Use AVVO's Find a Lawyer tool to select a qualified attorney. Good luck. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
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