Interest Usuary Laws on 2nd Mortgage

[mc4447]

undefinedWhat is the name of your state? Montana

My husband and I took out a 2nd mortgage to put a new roof on our home.
The interest rates at that time were 15.875.
Since then, we have filed for Chapter 7 Bankruptcy. The lending institution will not refinance this loan at a lower rate.
Our bankruptcy judge will not let us pay this $ of interest.
We are in a bind now. We have not paid payments, attorney said not to; we have not made attempt with other institutions to refinance; and GMAC will not refinance. GMAC says they are going to forclose on their 2nd. That they can buy out the lst and forclose. Is this a scare tactic? What do we do? HELP

 

[MortgageGuru]

It's not a scare tactic. If there is equity in your home then it can happen. Your attorney is a bona fide idiot for recommending you not pay your mortgage. If you are unable to come up with the money to prevent foreclosure and a Chapter 13 is not feasible then I recommend you sell your home after doing the Chapter 7, put the proceeds in savings and sit on it for 2 years and rent a home for the time being.