QUESTION
What happens next after receiving cancellation of security deed?
Asked on Jul 11th, 2016 on Bankruptcy - Wisconsin
More details to this question:
I took out a HELOC (2nd) in 2003, filed Chapter 7 in 2005, due to toddler with cancer and mounting bills. I reaffirmed both first loan and 2nd HELOC. We have continued to pay first mortgage without missing. We had to stop paying HELOC 3 years ago due to medical treatments. Never a word from the mortgage company. We continued to receive a statement on HELOC but it says due to bankruptcy, they cannot enforce trying to collect debt. Fast forward, we received "Cancellation of Security Deed" from my county on April 2016. Checked at courthouse - "yes" they released lien on 2nd mortgage. What happens now? Will debt collectors come after me? Is this really gone? Can I sell my home?
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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A mortgage which was not reaffirmed and has released the lien against your house is gone and you can sell your house.
Answered on Aug 22nd, 2016 at 6:45 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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These are all good questions, which the bankruptcy lawyer you retained should answer. It sounds like the HELOC creditor did you a bit of a favour by 'cancelling' the lien it held on your property. Your personal obligation to them was very likely discharged in your bankruptcy, so they should not trouble you in the future.
Answered on Aug 10th, 2016 at 11:57 AM