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 EdieA!
Welcome to forums!
As far as I can understand, the mortgage has been discharged in the bankruptcy filing. However, the lender has the rights to foreclose the property in order to recover the balance debts. As the mortgage is in the name of your husband, foreclosure will be listed in his credit report.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I can understand, the mortgage has been discharged in the bankruptcy filing. However, the lender has the rights to foreclose the property in order to recover the balance debts. As the mortgage is in the name of your husband, foreclosure will be listed in his credit report.
Feel free to ask if you've further queries.
Sussane
Here is my situation and then question. We are a BK7 with a primary mortgage and a rental property. The rental was foreclosed on without issue during the chap. 7. We retained the house on the pay to retain program, but it was still included in the chap. 7. We are upside down $230k. We have a second mortgage with a $90k Balloon due in 9 yrs. We live in a neighborhood that is still being developed with new homes being built right behind us for literally half what we owe on ours. Since we are chapt. 7 is there ANY benefit whatsoever in trying to conduct a shortsale, or pursuing a Deed In Lieu? Both of these would recquire the 2nd place mortgage holder to simply release or forgive that note ($90k) and then the process of listing the property for 90 days, and either finding a buyer and or receiving permission for Deed in lieu. But based on the above remarks, if we simply walk away there is no more negative affect on the credit than what the Chap. 7 did and we are already at 680 less than a year out of BK7. So if there's nothing more negative of an impact then why would we pursue a forgiveness, and go through the headaches of a short sale??
Welcome semm,
Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about52917.html
Take a look at it. I hope it will help you.
Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about52917.html
Take a look at it. I hope it will help you.
Can I walk away from the my house after chapter 7?
Hi Sheeba!
Welcome to forums!
You can surrender the property to the lender if you have included it in your bankruptcy filing. The lender will foreclose it and recover as much dues as possible. He won't come after you in order to recover the deficient balance as the loan has been discharged in your bankruptcy filing.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can surrender the property to the lender if you have included it in your bankruptcy filing. The lender will foreclose it and recover as much dues as possible. He won't come after you in order to recover the deficient balance as the loan has been discharged in your bankruptcy filing.
Feel free to ask if you've further queries.
Sussane
I filed for a chapter 7 back in 07. The house was given back to the bank(Countrywide Home Loans) in the bankruptcy. I'm not sure if it was before or after the discharge that Countrywide was taken over by BOA. It has now been 4 years since I have lived in the house and even longer since I have made any payments on it. Upon applying for a very small auto loan, I was denied due to a pending foreclosure showing on my credit report. Isn't this a violation of my rights?
Hi Vegas,
Though you have surrendered the property the lender has not yet foreclosed the property but will be doing it. The foreclosure has been reported to your credit report which the lenders can do though you filed bankruptcy. You should contact the concerned lender and ask him to sell off the property asap in order to get rid of it.
Thanks
Though you have surrendered the property the lender has not yet foreclosed the property but will be doing it. The foreclosure has been reported to your credit report which the lenders can do though you filed bankruptcy. You should contact the concerned lender and ask him to sell off the property asap in order to get rid of it.
Thanks
Our bankruptcy was dischared 2/08. We did not reaffirm our 1st or 2nd mortgage. We can no longer afford this home and are late on both loans. We just found out that we don't qualify for a modification and they cannot help us. If we don't catch the payment up they will forclose. My question is: Which is better, deed in lieu of or just walk away? Whatever is suggested how will this effect our credit report? Will it be a double wammy? How long would it be before we could purchase a more affordale home? Since our bankruptcy we have reestablished our credit score to be very good, but I don't want to hurt it again. Any suggestions?'
As you haven't re-affirmed your mortgage, you can simply walkaway from your property. The lender will foreclose the property and recover as much debts as possible. He won't come after you in order to recover any further deficient amount. After a bankruptcy discharge and foreclosure, you may have to wait around 3-4 years to qualify for a new mortgage.
we just received a discharge in chapt 7 and we did not include our 1st or 2nd mortgages. Now after being discharges we want to walk away as we are wayyy upside down. What do I need to consider? Can I assume 12 mo or more of foreclosure time? Will my credit be severely affected? Can I even rent after all this??
Hi kk,
You can surrender the property to the lender and get rid of it. The lender will sell it off and recover the debt. It may have some negative affect on your credit report. Initially you may face difficulty in renting a property but with time, you will be able to rent.
Thanks
You can surrender the property to the lender and get rid of it. The lender will sell it off and recover the debt. It may have some negative affect on your credit report. Initially you may face difficulty in renting a property but with time, you will be able to rent.
Thanks
what's the best way to handle home owners ins payments and property tax in forecloure if it is setup in an escrow account?
Hi kk,
If there is an escrow account, then the lender will have to make home owners insurance payments and property tax payments from that account.
Thanks,
Jerry
If there is an escrow account, then the lender will have to make home owners insurance payments and property tax payments from that account.
Thanks,
Jerry
I did not reaffirm my 1st,2nd,3rd mortgage during my bankruptcy.
All 3 were discharged, I looked at my credit report. But they are still reporting me delinquent on credit reports. I am now in foreclosure and they should not be reporting me delinquent or being foreclosed. Do I need to speak to my attorney or credit burea to correct this?
All 3 were discharged, I looked at my credit report. But they are still reporting me delinquent on credit reports. I am now in foreclosure and they should not be reporting me delinquent or being foreclosed. Do I need to speak to my attorney or credit burea to correct this?
Hi Steveo!
Welcome to forums!
You should speak to your bankruptcy attorney and take his opinion in this regard. The attorney will be the best to help you in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You should speak to your bankruptcy attorney and take his opinion in this regard. The attorney will be the best to help you in this regard.
Feel free to ask if you've further queries.
Sussane