Posted on: 18th Jan, 2009 10:44 am
My husband and I filed for bankruptcy in September 08 after I lost my job. We did this to eliminate our unsecured debt and free up the cash to continue to make our house payments. Our attorney petitioned Citi Mortgage to reaffirm our mortgage. Our bk was discharged in December and I pulled our credit report to see that the mortgage account has been closed with a zero balance and was included in our discharge. Citi has told us that we can reaffirm IF the judge reopens the case and we were told by our attorney that he will not. We can continue to live here and make payments but they will not be reported. If we are essentially "renting" our home now, we can rent something much nicer for far less (we bought at the height of the bubble in 2007 and our house is not worth almost $50K less than our mortage is for). My question is this...if we walk away can the mortgage company report a foreclosure on a loan that was already discharged? Should we do a DIL - do we even have to do that since the mortgage was discharged. We were told by our attorney that we should act quickly if we are going to give up the house so it is seen as one hit. Any help would be greatly appreciated. Thanks.
Hi Benze,
As the mortgage got discharged in your bankruptcy filing, the lender will not be able to come after you for the deficient balance.
As the mortgage got discharged in your bankruptcy filing, the lender will not be able to come after you for the deficient balance.
Reading your post relieved me tremendously. I got a discharge in 2010 and did not reaffirm any mortgage. I had rental properties and a joint property. I am glad to know that the ensuing foreclosure will not be on my credit report and that I can start rebuilding my life again. Yes there was a divorce involved. It was the the toughest time of my life.
I am saving for a down payment so my kids and I can have a home in a few years.
Good luck to all
I am saving for a down payment so my kids and I can have a home in a few years.
Good luck to all
Scenario:
Discharge is coming up shortly
Mortgage is included in BK Discharge
After Discharge can I still do a Short Sale on my home? I'm strictly just trying to take advantage of the HAFA benefit to help me move. In otherwords does my Lien Holder BOA still have to comply with HAFA after my Discharge?
Discharge is coming up shortly
Mortgage is included in BK Discharge
After Discharge can I still do a Short Sale on my home? I'm strictly just trying to take advantage of the HAFA benefit to help me move. In otherwords does my Lien Holder BOA still have to comply with HAFA after my Discharge?
After your mortgage is discharged, you can still do a short sale on your home. You can surrender the property to the lender and ask him to sell it off. The lender may not have to comply with HAFA.
I did not reaffirm my mortgages but continued to pay them for a year when a met with money problems. I tried working with the bank, but never signing anything. The affordable home mortgage was turned down. I am 67 and think that I should just walk away and am making plans to do so. Am I wrong to think that there will not be any extra charges? My house is upside down by about $70000. Please help me.
Hi justjg,
As you did not reaffirm the loan, you won't be liable for paying off anything to the lender once you walkaway from the property. There won't be any extra charges for it. The lender will simply foreclose the property in order to recover as much dues as possible.
As you did not reaffirm the loan, you won't be liable for paying off anything to the lender once you walkaway from the property. There won't be any extra charges for it. The lender will simply foreclose the property in order to recover as much dues as possible.
we filed chapter 7 bankruptcy in 2008 in florida. we had a mortgage with chase and they never reported out any payments nor deliquencies. we asked chase about it and they said it was because we did not reaffirm our loan. the loan has been assigned to lbps and for the 1st time now in july 2011 they are reporting out past due amounts and reporting inaccuracies of the bankruptcy filing on july 2011 showing past due amounts in 2010 and 2011. on my husbands it's different than mine. when they report that way it is inacting the new debt to our credit. which looks like they are starting our bad debt collections afterward. credit reporting agency wtried to fix but lbps will not what can we do?
Welcome JenniferH,
As you did not reaffirm the mortgage, you're not liable for paying it though the lender has charged off the loan to a collection agency. You should ask the collection agency to stop contacting you as your mortgage has been discharged in your bankruptcy filing. If they don't listen to you, then you may contact your bankruptcy attorney and he will suggest you to take the required steps.
As you did not reaffirm the mortgage, you're not liable for paying it though the lender has charged off the loan to a collection agency. You should ask the collection agency to stop contacting you as your mortgage has been discharged in your bankruptcy filing. If they don't listen to you, then you may contact your bankruptcy attorney and he will suggest you to take the required steps.
Adonis, The lender transferred to another lender who is their servicer and is reporting out to the credit bureau after the bankruptcy. In fact 3 years after the bankruptcy. We contacted them and the credit bureau. The Bureau stated their was nothing they could do if the servicer who is now collecting will not correct the credit report. What can we do? What direction should we go in? Our bankruptcy attorney said she does not do credit repair and said that LBPS should not be reporting out past the 2008 bankruptcy. But they are and backdating the credit reporting. LBPS was not the servicer at the time of the bankruptcy it was Chase.
Hi JenniferH,
You should ask your present lender to update your credit report and report the correct account status. This might help you in solving your problem.
Thanks
You should ask your present lender to update your credit report and report the correct account status. This might help you in solving your problem.
Thanks
my chapter 7 bankruptcy discharged in dec of 2010 all creditors were included as well as my first and second mortgage. will i be liable to pay taxes if i short sale the home.
Hi anthone,
If you short sale your property, your deficient balance resulting from the property sale will be forgiven. You may have to pay the taxes on this forgiven deficient balance.
If you short sale your property, your deficient balance resulting from the property sale will be forgiven. You may have to pay the taxes on this forgiven deficient balance.
He filed 3 years ago and our home was included in it, now our bank is telling us that since our mortgage company is showing that we are making the payments we cannot get preapproved for another primary resident unless we have all 3 credit bureaus stop the reporting showing that we are making the monthly payment. Since we didn't do a reaffirmation is it better for us to surrender home or put it up for a Short Sale....keep in mind we have made an offer on another residence of greatly less money. :?
My husband had his house discharged in 2005 from his previous marriage...the exwife still lives in the house and he just checked his credit report and the house is listed once as discharged, the a second time as foreclosure proceeding were started in 6-2011? Can someone tell us what this means? The exwife claims his name is still on mortage and cant be taken off because he wont reaffirm the debt as advised by his lawyer...says its too late to do that..any advice?