Posted on: 17th May, 2010 05:58 pm
I filed for bankruptcy 2 years ago due to failed business and had my debts discharged. I kept house and continued to pay mortgage payments on 1st and 2nd mortgage. I never refinanced and both of these mortgages are discharged but because I continued to pay monthly payments, i still live in the house.
My mortgages are significantly more than house values. I can just walk out of the house as mortgages are already discharged because of bankruptcy. I want to live in house but would like to renegotiate with 1st and 2nd mortgage banks to lower principal. Do you think that banks will renegotiate if I tell them that I will walk away if my loans are not renegotiated.
My mortgages are significantly more than house values. I can just walk out of the house as mortgages are already discharged because of bankruptcy. I want to live in house but would like to renegotiate with 1st and 2nd mortgage banks to lower principal. Do you think that banks will renegotiate if I tell them that I will walk away if my loans are not renegotiated.
I just want to add that I never reaffirmed both mortgages.
Hi Bal!
Welcome to forums!
As you never reaffirmed the mortgages, you are not personally liable for the loan. In such a situation, the lender will not be ready to renegotiate the terms and conditions of the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you never reaffirmed the mortgages, you are not personally liable for the loan. In such a situation, the lender will not be ready to renegotiate the terms and conditions of the mortgage.
Feel free to ask if you've further queries.
Sussane
Thanks Sussane. What will be the best way to keep the house and have loan that is same as value of the house.
Hi Bal,
You can reopen your bankruptcy filing and reaffirm the loan. Once you reaffirm the loan and start paying the mortgage dues, you will be able to save the property. In order to lower your principle balance, you will have to negotiate with your lender for that. It will be the lender's discretion whether or not he would consider your request.
Thanks
You can reopen your bankruptcy filing and reaffirm the loan. Once you reaffirm the loan and start paying the mortgage dues, you will be able to save the property. In order to lower your principle balance, you will have to negotiate with your lender for that. It will be the lender's discretion whether or not he would consider your request.
Thanks