Posted on: 15th Mar, 2010 10:18 am
I received a Chapter 7 discharge in July 2009, and both my mortgages were included. I never signed any reaffirmation agreements; my attorney advised me to simply keep paying as scheduled. I have not missed any payments on either. First mortgage is 158K and 1400/mo. 2nd Mortgage is 69K/950mo. Recent and actual home appraisal (Feb. 2010) values the home at 186K. Obviously, I'm paying more than what the house is worth. I recently lost about 1/4 of my income due to cutbacks. I continue to pay the 1st Mortgage as agreed and called the 2nd to maybe work out a new rate with them. I offered $475 month and they refused to negotiate anything at all with me. They said they can't demand payment from me, but they'll note it in their records. I don't know if they would still foreclose, but I offered them what I could. As I see it, the 2nd Mortgage would lose maybe 40-45K if I just walk away and let the house go to foreclosure. I would think they would like to keep receiving a monthly payment. Are there any mortgage negotiation options available for my situation? Or should I just let the house go and move back to an apartment and start out all over again?
Hi squid,
As you did not reaffirm your mortgage with your lender while in bankruptcy, you are not personally liable for the debts. The lender cannot ask you for the payments. As you are making the payments, they haven't foreclosed the property. If you stop the payments, they would simply start off with the foreclosure procedure. In my opinion, it would be better if you could surrender the property and move back to an apartment.
Take care.
As you did not reaffirm your mortgage with your lender while in bankruptcy, you are not personally liable for the debts. The lender cannot ask you for the payments. As you are making the payments, they haven't foreclosed the property. If you stop the payments, they would simply start off with the foreclosure procedure. In my opinion, it would be better if you could surrender the property and move back to an apartment.
Take care.