| house loan upon death
What is the name of your state (only U.S. law)? california. my father recently passed away at his chapter 7 bankruptcy hearing. i was allowed to stand in on his behalf to complete the proceedure the following week and a discharge of debt has since been issued. my question is about the house. it was named as an exception in the paperwork due to the first morgage of $75k and the second (a personal line of credit) in the ammount of $169k. my father was paying interest only on the loans and the recent housing market has resulted in the current market frice to be $115k for the home. what happens to the loans now? there is zero $$$ to hire a lawyer and the "estate" is comprized solely of the residence in question. the bank has sent the "estate" a demand for payment in full of the first mortgage but not for the second. is there a chance the second can be written off due to the circumstances? well, ultimately the bank will be writting off most, if not all of the second due to their just not being any capitol to satisfy the demand. | 
12-16-2008, 10:32 AM
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