Michigan bankruptcy and mortgage

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

Hi, we have filed ch. 7.
1) we are NOT behind in any mortage payments
2) we have been advised to NOT reaffirtm since the house is $54k top heavy due to falling values.
Question:
It is my understanding that the bank CANNOT just toss us out, they would however be forced to foreclose IF I stop paying payments.
IS this correct? I am asking because if the mortgage is BK'd would, IF we stopped paying later, have to follow foreclosure laws including the PERIOD of redemption??? OR do those laws not apply and all they would have to do is a evictionwhich is a much shorter time period.
Question:
If we just agree to stay, and keep up with the current payments, CAN the bank however, since we have BK'd the mortgage, RAISE the monthly amount?

sara · Posted: Tue Mar 09, 2010 2:18 am Post subject:

Hi lmiller,

If you do not reaffirm your mortgage but continue to make payments, then the lender will not foreclose your property neither will he ask you to leave the property. However, if you are not making the payments, then the lender will start foreclosure proceedings and ask you to leave the property.

The bank will not raise your monthly payments just because you filed bankruptcy.

Take care.

Guest

Hello. My wife and I bought our house about 6 months ago. It was a foreclosure and we were able to get a great deal on it. We also took advantage of the 8K tax credit so that definitely helped. We did an extensive remodeling job and now I want to refinance to cut the term to a 20 or 15 year loan. Does anyone know any good sites for mortgage information? Thanks!

Mike

jameshogg · Posted: Tue Mar 09, 2010 11:46 pm Post subject:

Hi mikejohnson,

You bought your property just 6 months back. You won't be able to get a refinance so soon. You will have to wait for at least 1 year in order to get a refinance on your present loan.

Thanks

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