Posted on: 13th May, 2009 11:13 pm
hello, i filed for chapter 7 bankruptcy in january 2009, and recieved my discharge last week. i filed prose and paid a legal document agency to draw up the paperwork. i included both my car loan and my 1st and 2nd mortgages as exempt in the bakruptcy filing, but only my car loan company filed to reaffirm loan. my mortgage company never filed the necessary paperwork to reaffirm the loans. the reason they gave me was that they only reaffirm loans that are current. i went back and forth with them, but both the 1st and 2nd mortgages were discharged in the chapter 7 before i could straighten the situation out. i am set up on a modification repayment plan for my 1st loan that starts may 16th, but the 2nd mortgage loan modification is still being reviewed. now i am wanting to relocate to another state, and i don't know if i should sell or just let it go into foreclosure since i'm no longer responsible for the 1st or 2nd loan debt. if i let it go, will the foreclosure affect me in anyway since the debt has been discharged? or if i sell it would it benefit me in anyway? plus i owe 102,000 & my realtor is suggesting to sell @ 99,000.
Hi george,
If you let the property go into foreclosure, it will still effect your credit score and lower it by 250 points. Though you are not personally liable for the loan, the lender still holds a lien on the property. You can try selling off the property. But before selling it off, you will have to inform the lender. Property prices have decreased largely in the recent times. That's the reason why your realtor is asking you to sell off the property at a lower amount. You will have to pay off the deficient amount on your own to the lender.
Take Care.
If you let the property go into foreclosure, it will still effect your credit score and lower it by 250 points. Though you are not personally liable for the loan, the lender still holds a lien on the property. You can try selling off the property. But before selling it off, you will have to inform the lender. Property prices have decreased largely in the recent times. That's the reason why your realtor is asking you to sell off the property at a lower amount. You will have to pay off the deficient amount on your own to the lender.
Take Care.
I filed for Chapter 7 with the home included and have not made mortgage payments in 5 months. Foreclosure proceedings have not started yet. Since they are starting after the discharge, will this foreclosure be listed separately on my credit report, even though the home was included as part of my Chapter 7?
Hi Guest!
Welcome to forums!
As far as I know, the foreclosure will be listed in your name. It will lower your credit score by 250 points. As you were not paying the mortgage dues, you should have moved out from the property. I would suggest you to contact your bankruptcy attorney and discuss your options.
Sussane
Welcome to forums!
As far as I know, the foreclosure will be listed in your name. It will lower your credit score by 250 points. As you were not paying the mortgage dues, you should have moved out from the property. I would suggest you to contact your bankruptcy attorney and discuss your options.
Sussane
I am in a real dilemma. I filed Ch 7 last year and it was discharged in Oct 09. I unfortuneatey had to pay the trustee 7000.00 due to my income tax refund which I dd not realize I was not allowed to spend it. I used this money to get my mortgages caught up. I then fell behind again in the mortgage because I had to pay the trustee or go to jail. My house then went way under value, I couldnt sell now Ive hired another attorney to do a loan mod, I havent madee a mortgage payment in 7 months and found my house up for preforeclosure sale on the internet. Is there any hope? Should I listen to the attorny and be patient? Should I start packing? Help...
Hi guest,
You've mentioned that your Chapter 7 was discharged in 2009. I guess you did not reaffirm the debts. In that case, it's better to surrender the property to the lender. The lender would foreclose it and recover his dues. If you want to reaffirm the debts now, you will have to reopen the bankruptcy.
You've mentioned that your Chapter 7 was discharged in 2009. I guess you did not reaffirm the debts. In that case, it's better to surrender the property to the lender. The lender would foreclose it and recover his dues. If you want to reaffirm the debts now, you will have to reopen the bankruptcy.
We surrendered the property to the bank in January, 2 1/2 months prior to the discharge. In other words we moved out, but they are filing forecloser and have send several allegations that we owe back taxes, interest, etc. What should we do?
The lender will go for foreclosure after you surrender the property to them. This will help them in recovering the dues. If you do owe back taxes, then you will have to clear it off. Back taxes do not get discharged while you file bankruptcy.
Hello I am in the process of trying to reaffirm my mortgage, because I filed chapter 7 the judge denied the reaffirmation of my mortgage because it is a 7 and the mortgage company wont change the wording to say loan modification. How can I keep my home... my debts havent been discharged yet and I am trying to keep my home. I would like to make some kind of arrangements with Hsbc. Thanks
Hi beamaw,
Reaffirmation of debt is available in Chapter 7. Modification of loan and reaffirmation of debt is completely different things. Lender will modify your loan when you are facing hardship to pay off the dues. You will get an affordable payment plan to pay off your loan balance. Reaffirmation of debt in Chapter 7, on the other hand, means that you are personally liable for paying off the mortgage dues. This will also help you in saving your property. I would suggest you to speak to your lender and your bankruptcy attorney in order to reaffirm your debts.
Thanks
Reaffirmation of debt is available in Chapter 7. Modification of loan and reaffirmation of debt is completely different things. Lender will modify your loan when you are facing hardship to pay off the dues. You will get an affordable payment plan to pay off your loan balance. Reaffirmation of debt in Chapter 7, on the other hand, means that you are personally liable for paying off the mortgage dues. This will also help you in saving your property. I would suggest you to speak to your lender and your bankruptcy attorney in order to reaffirm your debts.
Thanks
If you included your mortgages in your Chapter 7, and you had to, they were discharged. They should not be reporting on your credit and should show a zero balance. If you foreclose, they cannot report anything else to those discharged accounts. You take ONE hit from the Discharge. That's it. However, a foreclosure of course will show up in public records. And when applying for a new mortgage, the lender will be able to find this. So, you can purchase a home 3 years after the when the bank auctions off the home with FHA. Disregard other lenders, FHA is the one to go with. And downpayment is 3.5%. Everything after the foreclosure needs to be perfect, job history, on time payments. If there is any late payment, the clock starts all over. Many incorrect answers on this board.
It would be nice to come to this forum and find the "RIGHT" answer. My chpt 7 was discharged Jan, 08. 1st and 2nd Mortg was included in bankruptcy and not reaffirmed. We have been paying on time until recently. Now considering letting it go and renting. Credit report indicates that the mortgages were included in the bankruptcy. So here again is the question....If I let the bank foreclose on the house, will the foreclosure appear on my credit report? I can't see that it should, since I don't technically owe the bank anything, but like others here, I can't seem to get a straight answer. Please...only answer if you know for sure. That would be most helpful! Thanks
Hi Cindy!
Welcome to forums!
There are less chances that the foreclosure will appear on your credit report. If the lender reports it to the credit bureau, then the foreclosure will get reflected in your credit report.
Sussane
Welcome to forums!
There are less chances that the foreclosure will appear on your credit report. If the lender reports it to the credit bureau, then the foreclosure will get reflected in your credit report.
Sussane
hello. i was discharged from ch 7 last year. the judge let me keep my apt since i have nowhere to live. i was current on mtg 1 pmts. no pmts made on mtg 2 and not invoiced. no reaffirmation was given to me by either secured intest. i slipped this year and a sale date was set but paid all arrears in zero hour. need mod and got threatening letter from mtg1 i have two weeks to reaffirm or "may be sued." question - do i owe on mtg2? and can mtg1 sells apt (mkt is twice mtg) cuz i cant pay (probable situation)?
i have no money, staff stole from my company thus the ch7 and now on welfare and freaking out...
ty
i have no money, staff stole from my company thus the ch7 and now on welfare and freaking out...
ty
Hi Guest,
If you do not reaffirm the mortgages, then you won't be personally liable for paying the dues. However, once you reaffirm both the loans, you'll be liable for paying off both the loans.
Thanks
If you do not reaffirm the mortgages, then you won't be personally liable for paying the dues. However, once you reaffirm both the loans, you'll be liable for paying off both the loans.
Thanks
Cindy S,
The BK just relieves your liabililty to repay. For the bank to take the house back, they still have to hire a foreclosing attorney to foreclose and "repo" it. The bank is free to report the foreclosure to the credit bureaus in addition to the bk that's already there.
The BK just relieves your liabililty to repay. For the bank to take the house back, they still have to hire a foreclosing attorney to foreclose and "repo" it. The bank is free to report the foreclosure to the credit bureaus in addition to the bk that's already there.