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Company Loan Type APR Est. Pmt.

chapter 7 discharge with forclosed home

Posted on: 13th Jan, 2010 08:00 pm
Hi I received my chapter 7 discharge at the end of 2009 (I also told my lawyer that I am giving up the house when I decided to file bankruptcy and I'm no longer am living at my property I'm renting instead ), my home is currently going into foreclosure and will be foreclosed at the end of 2010. Would I be able to start saving money in the bank during the foreclosure or do I need to worry about the bank coming after me on the money in my bank? Please advise. ...
Welcome pepa,

Your mortgage has been discharged and you have surrendered the property to the lender. In that case, you are not personally liable for the mortgage anymore. Thus, the lender will only be able to recover the property and sell it off to get back his dues. He won't be able to come after you for the deficient amount. Thus, you can start saving money now though your property is in foreclosure.
Posted on: 13th Jan, 2010 11:45 pm
Thanx Adonis will the city come after me and collect the past due (which probably went to collections now) on my utilities bill and electric bills and will they show up on my credit report? And also I'm seriously thinking about getting a loan out in the future for a home and holding on to this one, what are my chances and how soon can I do this and what do I need to do?
Posted on: 14th Jan, 2010 08:16 pm
Hi pepa!

Welcome to forums!

As far as I can understand, you'll have to pay off the utility and electric bills. You'll be able to qualify for a loan in the future. As you filed Chapter 7, you'll have to wait for 4 years after the discharge to get a conventional loan. In order to get a FHA loan, you'll have to wait for 2 years.

Feel free to ask if you've further queries.

Sussane
Posted on: 14th Jan, 2010 10:46 pm
Thanks Sussane!!

Wayyyy before any of this (bankruptcy and going into forecolusre) when I still have a good credit... I had co-signed a Sallie Mae loan for a family member for college.. The family member graduated college couple years ago and is a full time employee.. Now, if she doesn't pay it, since she is currently employeed... will they garnish her wages? (she is single, no dependents) or will they come after me, I'm a single mother with two dependents.
Posted on: 15th Jan, 2010 09:21 am
Hi pepa,

As you've co-signed for the loan, you have a liability towards it. If the primary owner of the loan defaults the payments, then the lender will be able to sue you for the dues.

Thanks
Posted on: 15th Jan, 2010 10:54 pm
Thanks jameshogg!!

If I start saving money in the bank (after my discharge and foreclosure) will Sallie Mae (I co - signed a student loan for a family member who is single and currently full time employeed/ if the primary borrower defaults on the loan) try to sue me for my money thats in my bank?
Posted on: 19th Jan, 2010 12:36 pm
Hi pepa!

Welcome back to forums!

If you've co-signed for the loan, then you're equally responsible for it if the primary borrower defaults it. The lender may sue you for the debts and may even foreclose the property. This will affect your credit score and the lender may even garnish your savings account for it.

Feel free to ask if you've further queries.

Sussane
Posted on: 19th Jan, 2010 10:42 pm
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