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ML
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0.10 Dollars($)
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Post subject: Foreclosure or Chapter 7 |
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| We bought a house 1.5 years ago for 240,000 VA secured. Then it WAS valued at 280,000. It needs some repairs (new carpet/flooring, new fencing, outside painting and a few windows). We were planning to to get a small loan (15,000) against house to fix these items but market went bust. Our home is now valued at 218,000 according to county taxes. Can't afford to fix it up right now and I lost my full time job 8 months ago and haven't found another one yet. We owe 20,000 on credit cards and have 2, six year old cars that will be paid off by May 2010, (owe 5,000 for both right now). Have a son going to college in two years. My father died and left me joint property with sister valued at 130,000 4 hours away. We are living hand to mouth to handle mortgage and credit cards while Homeowners association sends us nasty letter to fix up the house and will charge us $25 per day until fixed. We are willing to give up house. Will bank take my inherited land? We want to move there and live. Cost of living much cheaper. Any suggetions? Thanks so much. |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Hi ML,
You can speak to the lender for a deed in lieu of foreclosure and check out if the lender accepts it. If the deed in lieu is accepted, then the lender will not come after you for the deficient balance. Thus, your inherited land would be safe. If the lender forecloses the property, then you would be liable for the deficient amount. In that case, if you do not make the payments, then the lender can attach a lien to your inherited land.
Take care. |
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Bobbylecamus
Joined: 08 Sep 2009
Posts: 2
1.53 Dollars($)
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Post subject: can you walk away from a mortgage that has not been reaffirm |
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| we filed chapter 7 and it was discharged in august 2009 can we walk away from our home if it has not been reaffirmed |
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jameshogg
Joined: 20 Dec 2005
Posts: 10158
Location: Nevada
943.34 Dollars($)
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Hi Bobbylecamus,
You can surrender the property to the lender and walk away from it. The lender would foreclose the property and try to recover his dues.
Thanks |
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NilVictor
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Post subject: Should I file Chapter 7 now before foreclosure? |
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I'm in California and in foreclosure. My sale date is in 3 weeks at public auction. I've been talking to my lender since Nov. 08 trying to get help. I've spent hours and hours researching, faxing paperwork to them, etc. In June they said I was "pre-approved" for a loan modification and would get back to me w/in 90 days with the final numbers. This is B of A by the way. I keep calling to check in on it and get the same run around, "It's still in process". The sale date was set for the beginning of this month but I got it postponed at the last minute. Even if they paperwork comes through they've told me my mortgage payment is going to be higher than it was before to pay the arrears of missed payments. I lost my job just after putting my paperwork through in June and couldn't afford the new payment if I wanted to with my freelance income. The house is $240K under water and wouldn't recover value for years. I have a 1st of $650K and a second of $90K - both with BofA (used to be Countrywide) and the comps in my neighborhood are selling anywhere from $450,000 to $525,000. I also have $225K in unsecured debt as well that I can no longer pay so I know Chapter 7 BK is unavoidable & I accept that. This past year full of anxiety and stress over financial problems is time I will never get back and I'm ready to throw in the towel & let the house go at this point. I just want my sanity back and the creditors to stop calling.
I've been meeting with BK attorneys over the last 2 months and haven't found one I'm comfortable with. Furthermore, it seems one person says one thing and another says the opposite. I met with one last week and while they were the best I've sat down with so far. They told me that I needed to file Chapter 7 before the foreclosure otherwise it would be very difficult to find a lender down the road willing to give me a home loan for ten years. It scared me and put me in panic mode. I can't tell if this was a tactic to get me as a client quickly or truthful info. They said a few other things in the meeting that felt a little like scare tactics too and I can't figure out if I'm being oversensitive or smart. I do hope one day to recover from my financial mess and might want to buy a home again so it's important I take the right steps in the right order. I also don't want to end up with a situation with a foreclosure that Chapter 7 won't discharge. I looked through lots of the discussions here but can't seem to get a definitive on whether or not I should rush to file Chapter 7 before the foreclosure sale date in 3 weeks. I don't care about stalling or halting the foreclosure because it's inevitable and in Chapter 7 my lender may just ask to push it forward. It's not a lot of time to get the paperwork together and I may have to hire an attorney I'm not completely comfortable with. I just don't want an attorney to rush this through and miss something that could hurt me years down the road. Sorry for the long explanation and TIA. |
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Hi NilVictor!
Welcome to forums!
When you file Chapter 7 bankruptcy, you will have to list all your assets. You can get your debts discharged in Chapter 7. However, if you want to save the property, you can reaffirm the loan and pay it off on a regular basis. Once you reaffirm the loan, you would become personally liable for the mortgage dues. However, if you don't reaffirm the loan, you will not be liable for the payments. The lender will foreclose the property and recover the dues.
Feel free to ask if you've further queries.
Sussane |
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NilVictor
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Post subject: BK before Foreclosure |
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Thanks, Sussane. My real question is whether or not it makes a difference if I file Chapter 7 before or after the foreclosure sale date of my home. My property isn't an asset and actually a liability at this point as it's $240K upside down so saving it isn't a viable option for me. BK and foreclosure are inevitable for me at this point and I've made my peace with that.
What I'd really like to know is if filing Chapter 7 before the foreclosure sale offers any real advantages. A lawyer I met with was told me if I file BK after the foreclosure I'd end up with a BK and a foreclosure on my credit report which would make it very difficult to get a home loan for 10 years. He said if I file the BK before the foreclosure sale date the foreclosure gets wrapped up in the BK and only a BK shows up on my credit report which would allow me to possibly qualify for a home loan after 3 years from discharge if I'm able to rebuild my life financially. Is this true or is it a way for the attorney to get me to hire him for the BK quickly because he knows the foreclosure sale is 3 weeks away?
I thought the only advantage to filing BK before the foreclosure sale was to halt the proceedings and buy some more time. In my case I don't care about getting a few extra weeks in the house; it's been painful enough being here knowing I'm losing it. |
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simonhovell
Joined: 03 Sep 2009
Posts: 36
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Nilvictor.
you do not have any equity in your house. better to forget it. credit score can be improved |
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NilVictor
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Post subject: which should come first? BK or Foreclosure |
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but my question is if anyone can answer it: does it make a difference if I file Chapter 7 after the foreclosure versus filing it before? If so, what are they?
Again, I don't want to stall foreclosure proceedings so that part of the equation doesn't matter to me.
thanks! |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Hi NilVictor,
If you file bankruptcy before the foreclosure proceedings have started, the court will issue an automatic stay and your creditor will not be able to sue you for the debts. You will get 3-4 months time in your hand. Meanwhile you can decide whether or not you want to reaffirm the loan and make the payments. If not, then you'll have to surrender the property to the lender. This will help him in selling off the property and recovering the dues. However, as far as I know, your credit will be affected by foreclosure whether it takes place before or after the bankruptcy filing.
_________________
Procrastination is the enemy of your financial success |
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bk13
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Post subject: foreclose under bk13 |
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our lender does not want to lower the price our home base on a current price and with the help of negotiator can they still forclose our home
we are not making payment right now but the arear and can the BK court cannot do anything? about this |
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jameshogg
Joined: 20 Dec 2005
Posts: 10158
Location: Nevada
943.34 Dollars($)
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Post subject: |
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Hi bk,
If you file for Chapter 13, the lender will not foreclose the property. Under Chapter 13 bankruptcy, you would receive a payment plan to pay off the dues. As per the payment plan, you will have to clear off the dues within 3-5 years.
Thanks |
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bk13
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Post subject: |
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thanks James it is nice to know some one cares without a charge or free 
like i said the lender jack up our mortgage payment up to $3000
plus arear $900 payment plan for 5 years. so we hired a loan modification agent to negotiate our loan.but the lender not willing to lower the price to current market and right now we are behind 3 months since the BK was approve by the court our agent said the lender is going to file a motion for a release of the property. are we still protected by BK13?
thanks |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Post subject: |
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Hi bk,
If the lender files a motion against the automatic stay and if the court grants it, then you won't be protected under Chapter 13 bankruptcy. Once the automatic stay is lifted, the lender would have the rights to sue you for defaulted amount.
_________________
Procrastination is the enemy of your financial success |
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BK13
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Post subject: |
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thanks james
you said if the court grants so there is a possibility that the court will not
i believe i have case to win this because originaly my firts mortgage was $2000 after the BK approve the lender charging for house insurance for the past few months but we dont missed any payment to the insurance
and he also add a state tax the amount of $3000 a year and some escrow
fee maybe he is right but why i am going to pay $3000 a month for 30 years if i owed him less than $5000 i dont understand that
james i want to thank you for taking your time answering my question
you been very helpful GOD BLESS YOU |
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