Saved home with a HAMP loan in 2012 but before it finally was approved I had to file BK to delay the foreclosure on home. I had a 1st TD and 2ndTDincluded both of them in BK. The first was partially secure debt with some not secured due to being underwater $170K. The 2nd TD shows as secure debt but the balance was not secured with no equity :
market price $350,000
1st TD (422,000)
2nd TD (94,500)
BK was discharged and I was led to believe the 2nd TD was avoided or eliminated since from that point on until 2015 received zero correspondence /calls from Spec Loan Servicing about 2ndTD. This whole I'm thinking the current equity is my retirement savings. A friend alerted me to a fact that it may still be a lien and need to be payable when house is sold. I called servicer and they said that is true. They've been serving loan for over 5 yrs; never eliminated. I did some back ground checking on SLS and very bad scams and class actions against them
You're going to want to get in touch with your prior bankruptcy attorney in order to confirm whether or not the lien had been stripped. If it was not, you could theoretically attempt to re-open the case and do so - though you will probably end up having to file a new case, should you endeavor to accomplish this goal.
As to the prior discharge, you were almost definitely discharged from your personal liability on the HELOC, assuming that you did not reaffirm personal liability, but the lien remains valid as against the property (absent entry of a separate Motion and Order Stripping Unsecured Mortgage Lien).
Talk to your prior attorney, then take action.
Good luck with your case!
Jonathan D. Warner, Esq. is an attorney and licensed to practice in the State of New York. This answer is provided for informational and/or entertainment purposes only. It should not be relied upon as legal advice, which can only be offered to clients in an office consultation setting, after all of the facts and circumstances of a case or controversy can be fully considered and reviewed. No attorney-client relationship should be inferred by virtue of any answers posted. We are a debt relief agency and help people file for bankruptcy.
I concur with the recommendation of my distinguished colleague attorney, Jonathan D. Warner. My learned colleague has provided you with a comprehensive and eloquently written statement in answer to your question(s).To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation with an experienced CA mortgage foreclosure defense and bankruptcy attorney. 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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Unless an order was entered stripping the 2nd, it still exists. Unless the HAMP increased your obligation under the note and 1st DOT (it appears it did not) why would a subordination agreement be required? You need to talk with your BK lawyer. If you did not have one, that was a mistake and you should retain one now. Good luck.
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Lien was not stripped unless court ordered it stripped.
Check with your BK counsel to determine secured status of the lien.
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