Credit Card Center Advertiser Disclosure

New Visitor
Posts: 1
Registered: ‎02-19-2013
0 Kudos

Mortgage mess in Indiana

Here is the situation


  Just married my wife 9 months ago and we are selling her home that she had with her deceased husband. Here are the particulars.


1. They filed Chapter 7 BK in 2005

2. They did not reaffirm mortgage or second mortgage

3. They did a loan modification in 2010 to reduce their payment.

4. Her late husband told her then (at time of modification) that 2nd mortgage was paid for. It was one of those situations that he took care of everything and she knew nothing.

5. She has not received any correspondence since re: 2nd mortgage, no bills or phone calls so she believed it was paid.

6. He passed away in 2011

7. We put the house up for sale in late 2012

8. We have sold the house. Accepted an offer, had inspection, gave info to title co. for payoff

9. Title co. found a lien, the 2nd mortgage. It has stopped all momentum until lien is resolved.


  We want to sell the house even though we can walk away. We would like to buy another house. Can we negotiate with Wells Fargo for settlement of 2nd without it being a short sale? In order to remove the lien and the sale can proceed. I am not able to be on the new mortgage due to damaged credit from a divorce. I would welcome help or suggestions with open arms.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0 Kudos

Re: Mortgage mess in Indiana

Bump and this probably belongs in the mortgage thread. I think you will receive more responses there.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Valued Member
Posts: 40
Registered: ‎06-11-2011
0 Kudos

Re: Mortgage mess in Indiana

If both the 1st and 2nd were claimed in BK7, with no reaffirmation, I'd walk away. She no longer owes the debt. If 2nd NOT included in BK, I'd try to settle with lender.


Full disclosure. I am a loan collector 

Starting Score 12-2011: EX 640 FAKO TU 550 FAKO 6-2011
Current Score 3-2012: EX 635 TU 603 myFICO 3-2012 EQ 670 MyFICO
Goal Score: 720

Take the FICO Fitness Challenge
In the Garden, trying to avoid the Christmas temptation. Last app 9/2012

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.