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debate about equity loan and bankruptcy


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Okay, So a friend and I were talking today and got into a little debate. I want to know who is right.

Here is the scenario-

He has a chapter 7 bankruptcy discharged two years. He has a mortgage of about 100,000. He also has an equity loan of just under 5,000. He did not reaffirm either mortgage.

He wants to stop paying his equity loan. We both have differing views about what would happen if he did this.

one of us thinks the equity lenders would petition the mortgage company to foreclose. and one of us thinks the equity lenders wouldn't do anything about it.

what do you all think??

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The equity lenders would foreclose.

My brother had serious issues with equity lenders even while he was in BK13. They kept trying to lift the stay and foreclose anyway. Every time they filed, my brother got hit with more legal fees! It nearly cost him a dismissal because he couldn't make his payments AND pay the lawyer to stave off the equity lenders!

If he wants to keep his house, keep paying.

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