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lmiller421 · Joined: 04 Mar 2010 Posts: 9 4.10 Dollars($)

Please clarify and be concise to help us! Thanks!
Heres the question I have.

Husband and I filed BK, creditors meeting set for May 3rd.
We have NEVER been behind on house payments and want to just keep paying to live there. House is 53K underwater due to falling values.
Bank had given us a 3% interest rate last year to get us by. Good thru Sept 2010
Now since we've filed BK, they say ( said today) even if we do Not reaffirm( we dont want to, hubby retired in 4 years) we MUST REFI the house in Sept since the lower rate was a temporary thing or...or they will foreclose! I asked if they would drop principal to reflect market value, they said " probably not we would lose money when market comes back) They said interest rate WILL be higher.
Ideas? Can they foreclose if we are NOT behind in payments? She said YES because the Loan "comes due " in sept. ..." But I BK'd it..." " Doesnt matter" is this true??

smithsussane · Posted: Mon Mar 15, 2010 8:54 pm Post subject:

Hi lmiller!

Welcome to forums!

If you file bankruptcy and do not reaffirm your debts, then you won't remain personally liable for the loan any longer. Lenders generally do not let borrowers to refinance the loan if they are not personally liable for it. After your bankruptcy is discharged, if you keep on making the payments, then lenders do not foreclose the property. But again, if you stop your payments, the lenders have the rights to foreclose the property.

Feel free to ask if you've further queries.

Sussane

Guest

I understand that is the case, BUT... is it true that if we DONT Refi as they are stating we HAVE to in Sept that even though we are current, they CAN foreclose?

adonis · Posted: Wed Mar 17, 2010 12:24 am Post subject:

Welcome lmiller,

As far as I can understand your situation, the lender should not be able to foreclose the property as it was included in bankruptcy and your are current on your payments. However, I would suggest you to have a word with your bankruptcy attorney in this regard. He would be the best person to help you.

pseibel · Joined: 21 Mar 2010 Posts: 4 1.94 Dollars($)

If you have been keeping up the payments why in the world wouldn't you want to reaffirm?? Maybe I'm nuts but that makes no sense to me.

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Is this really TRUE?? Anyone?