Bankruptcy/2nd mortgage buyout

What is the name of your state?What is the name of your state? Utah

In March of 2001 I filed bankruptcy. I reaffirmed on my 1st mortgage. When I tried through my attorney to reaffirm with the 2nd mortgage they returned the papers and said that I had missed the deadline for reaffirmation. In the months that followed I tried to send payments as well as attempted to still reaffirm the note. The returned the checks to me and said that they would not accept any payment until the loan was reaffirmed - which they would not allow me to do. In May of 2004 I received a letter from the bank saying that they had sold the loan to another servicer. This was the first correspondence I had received from then since the failure of reaffirming 3 years earlier. In June of 2004 I received a letter from B&B Funding that they had purchased the not and that I was over $6,000 past due. My balance on the note is now over $25,000. Since I did not reaffirm with the original lender and was not allowed to make good on the debt can they do this? I have no equity in my home and with the extra $25,000 debt it puts me owing more on the house than I can sell it for.
I would be very grateful for any advice you can give.

Thank you!

[HomeGuru]

Originally Posted by STootsie

What is the name of your state?What is the name of your state? Utah

In March of 2001 I filed bankruptcy. I reaffirmed on my 1st mortgage. When I tried through my attorney to reaffirm with the 2nd mortgage they returned the papers and said that I had missed the deadline for reaffirmation. In the months that followed I tried to send payments as well as attempted to still reaffirm the note. The returned the checks to me and said that they would not accept any payment until the loan was reaffirmed - which they would not allow me to do. In May of 2004 I received a letter from the bank saying that they had sold the loan to another servicer. This was the first correspondence I had received from then since the failure of reaffirming 3 years earlier. In June of 2004 I received a letter from B&B Funding that they had purchased the not and that I was over $6,000 past due. My balance on the note is now over $25,000. Since I did not reaffirm with the original lender and was not allowed to make good on the debt can they do this? I have no equity in my home and with the extra $25,000 debt it puts me owing more on the house than I can sell it for.
I would be very grateful for any advice you can give.

Thank you!

**A: yes, the lender can do that. You should have sold the property before you filed or during BK.