Foreclosure 2nd Mortgage Need Advice

Indiana -

I filed for bankruptcy in 2001 (Chapter 7), we reaffirm on our 1st mortgage. We also had a second mortage on the house for debt consolidation. We were ready to reaffirm on the 2nd mortgage but our attorney told us not to because he could get in discharged. We went through the bankruptcy with no problems and it was discharged. This past October we get a letter from the 2nd mortgage holder stating that " We know your Chapter 7 Discharge has cleared you of personal liability on home's mortgage. This is not an attempt to reinstate personal liability. We cannot force you to become current on this debt. We are legally entitled to foreclose on the property itself." They go on to tell us how we can pursue a lien release or another workout program. Anyway, I contact my attorney, give him the letter and he tells me that somehow the Adversary wasn't filed but he could take care of it, just get a estitmate on your home's value and no problem. So I pay $250 for an estimate. Two months later he contacts me saying that the trustee won't allow him to strip the 2nd lien anymore they stopped that November and I would have to file a chapter 13 and pay $100 a month for 60 months. I blew my top and asked him how he could screw up this bad. Then I get a letter from him saying that we didn't tell them that the debt consolidation loan was a 2nd mortgage (even though it was on the paperwork we filled out and it was a Money Store loan) so that's why they didn't file the Adversary originally and we didn't reaffirm on that loan and now wants all our correspondence via mail. Should I just file the chapter 13 - I don't want to as I am doing decent after the 7 and really don't want another bankruptcy. Should I sue the attorney, because it sure feels like malpractice on his end of the deal. I plan to contact another attorney soon but I would like to hear what some of you guys here think.

[HomeGuru]

[quote]Originally posted by garp
[b]Indiana -

I filed for bankruptcy in 2001 (Chapter 7), we reaffirm on our 1st mortgage. We also had a second mortage on the house for debt consolidation. We were ready to reaffirm on the 2nd mortgage but our attorney told us not to because he could get in discharged. We went through the bankruptcy with no problems and it was discharged. This past October we get a letter from the 2nd mortgage holder stating that " We know your Chapter 7 Discharge has cleared you of personal liability on home's mortgage. This is not an attempt to reinstate personal liability. We cannot force you to become current on this debt. We are legally entitled to foreclose on the property itself." They go on to tell us how we can pursue a lien release or another workout program. Anyway, I contact my attorney, give him the letter and he tells me that somehow the Adversary wasn't filed but he could take care of it, just get a estitmate on your home's value and no problem. So I pay $250 for an estimate. Two months later he contacts me saying that the trustee won't allow him to strip the 2nd lien anymore they stopped that November and I would have to file a chapter 13 and pay $100 a month for 60 months. I blew my top and asked him how he could screw up this bad. Then I get a letter from him saying that we didn't tell them that the debt consolidation loan was a 2nd mortgage (even though it was on the paperwork we filled out and it was a Money Store loan) so that's why they didn't file the Adversary originally and we didn't reaffirm on that loan and now wants all our correspondence via mail. Should I just file the chapter 13 - I don't want to as I am doing decent after the 7 and really don't want another bankruptcy. Should I sue the attorney, because it sure feels like malpractice on his end of the deal. I plan to contact another attorney soon but I would like to hear what some of you guys here think.

**A: can you afford to reaffirm the 2nd and pay the monthly payments?

No, I can't afford to make the payments. Legally the debt has been erased but they still have a lien. To any degree, I can't make those payments. Can anyone tell me to what degree my lawyer is to blame for forgetting to file the advisary? If he had done it in a timely fashion the lien would have been stripped. Is that malpractice? I plan to contact the state bar very soon.