Home Equity Loans – second mortgage

Treva M asked:


We lost our home and everything to Katrina. The insurance did not pay, the first mortgage was satisfied by the sell of our land. the second mortgage home equity line of credit charged off our loan without us knowing. They will not work with us at all they want payment including 23,000 in interest. We have been told that even if they would agree to a lesser payment the charge off would still be on our credit? We dont have the house or land anymore Or means to pay.. What can they do if we dont pay, and if we did pay how will it effect our credit? Could they lean the place we are living now?

HOWARD

Melissa asked:


Hi, I’m getting ready to file Chapter 7. I am Reaffirming my vehicle and home. My home has a second mortgage, Home Equity Line of Credit. My payments are all going to the interest and not principal. I have to keep this loan to keep my house. I owe around $15,000.00. My question is after I file, will I be able to get a personal loan through my credit union to pay this 2nd mortgage off so I can pay mostly on principal?
(My Bankruptcy is for all my medical bills, my recent surgery to have cancerous cysts removed from my abdomen cost a fortune that my sucky insurance wouldn’t pick up all of and other medical bills)

ARIEL