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In a Chapter 7 bankruptcy, you will not lose your house so long as you are current on your mortgage payments and continue to make your payments after filing. Even if you are not current, you can apply for loan modification to lower your monthly payments and have the past due amounts added to the outstanding principal. Bankruptcy will not alleviate your obligation to make your mortgage payments if you want to keep your home. In a Chapter 13 bankruptcy, you will be able to keep your home and also have the opportunity to catch up on the past due amounts over a 3-5 year period, as well as eliminating your second mortgage if the property value has decreased below how much is owed on the first mortgage. |
