0
If you have loaned someone money and registered a second mortgage on their home as security are you protected against that person declaring bankruptcy?
Theoxavier
Not absolutely.
You are a "secured creditor" and so would have higher standing with the court to collect than would an "unsecured creditor" but that is no guarantee.
The whole point of a person declaring bankruptcy is to say they have more debt than they can possibly pay, and they are asking the Court to decide who gets paid, and how much, and who doesn't, with whatever assets are available.
Well yes and no...As you are a secured creditor, you will have right first to the money from the dissolution of the secured asset (in the case along with, actually right after the 1st mortgage holder). So regardless of how much debt he has in excess of assets, if there is enough equity in the house above the first mortgage and you are capable of protecting your position by foreclosing and paying off the first mortgage, so you essentially recover your loan (and hopefully at least most iof the fees and losses for doing so...understanding the 1st mortgage will have those and all the miised payments too)...your fine....or done as much as you can anyway.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Where can one find out about bankruptcy mortgage loans?
One can learn about their options for getting a mortgage loan after declaring bankruptcy by visiting the websites of businesses that offer mortgages. Generally, one cannot obtain any kind of mortgage for at least two years after declaring bankruptcy, but some companies may make an exception.
Can second mortgage lien holder foreclose on your home after bankruptcy is closed?
The short answer is yes they can because once the bankruptcy is discharged you no longer are protected for debtors who wish to collect on a debt.
What is the top priority when distributing assets from someone declaring bankruptcy?
Secured creditors to the extent of their security on specific property (e.g., mortgage interest on real property)
Do both parties on a joint mortgage have to file bankruptcy on a joint mortgage?
No, both parties on a joint mortgage do not need to file bankruptcy. They can file a joint bankruptcy or a single bankruptcy.
Will bankruptcy protect me from foreclosure by my mortgage company?
Yes, bankruptcy protect you from foreclosure by your mortgage company. You can read more at www.hirby.com/mortgage-lender-filing-for-bankruptcy
Is my 401k and IRA protected from foreclosure?
If by "foreclosure" you mean that the mortgage lender is taking your home back, yes they are prtected. However, if you really mean BANKRUPTCY, no, they are NOT protected, since they are assets you can use to reimburse your creditors.
If you filled for bankruptcy then modified a mortgage can the mortgage company come after you or will it still be in your bankruptcy?
Great question for your BK attorney
What if you file bankuptcy and have a reverse mortgage?
The reverse mortgage is typically unaffected by the bankruptcy as the mortgage is usually left out of the bankruptcy- that is a conversation you need to have with your attorney however. The bankruptcy court may look at the amount of equity you have in your home and determine what type of bankruptcy you qualify for. A reverse mortgage can even be used to pay off a bankruptcy or a mortgage in foreclosure as there are no credit requirements on them. I suggest talking to a bankruptcy attorney for information on what is available to you from the courts side of things.
What causes Mortgage defaults to rise?
In the USA there is speculation that the 2005 bankruptcy reform caused an increase in mortgage defaults. By declaring bankrupty, homeowners can keep their homes. The problem created in 2005 occured when filing fees were raised and a lower amount of debt was forgiven.
What happens to a mortgage after a bankruptcy?
What happens to a mortgage after bankruptcy depends on whether or not the debt is reaffirmed. If the mortgage is reaffirmed the homeowner continues to pay it as if the bankruptcy had not been filed, since the debt has not been discharged. If the debt is not reaffirmed, what happens to the mortgage depends on the policies of the individual lender.
Can registered mortgage convert into an equitable mortgage?
No.No.No.No.
Can we enhance registered mortgage by creating equitable mortgage?
no
