If my secondary mortgage company is filing Chapter 11, how will this effect me?

Asked on June 11, 2012 under Bankruptcy Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the lender who holds a secured second mortgage on your property filed for Chapter 11 reorganization, you are still obligated to continue paying on the loan to it directly absent any bankruptcy order to the contrary.

I would contact the lender to make sure of the continued payments and follow up with a confirming letter if such is the case.


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