Posted on: 02nd Sep, 2010 07:05 pm
My mortgage was included in my chapter 7, but I'm also applying for a modification. I don't think my lender knows that the debt is discharged, because they still show the loan as open and threaten foreclosure. The loan was for $250K but now it's worth $135K and falling. I live in a subdivision far detached from the metro area of Phoenix and about 50% of the homes on my block have been vacant for a long time. My family and I want to stay in the home and have been making about 75% of the monthly payments.
What is the lender likely to do when they find out my mortgage was discharged? My C7 attorney said they'd just write a new loan if they modifiy, but I have doubts about the accuracy of his statement. Since my credit score is only about 500-600, I'm thinking they will just take the house and not give me another mortgage.
I was unempoyed for 9 months, but for the past year and a half I've had a very good, very secure job with a utility company.
Doesn anyone have an idea what the likely scenario will be? I'm very curious how this will probably play out and would love to know the opinions of others, especially those who may be familiar with this type of situation.
What is the lender likely to do when they find out my mortgage was discharged? My C7 attorney said they'd just write a new loan if they modifiy, but I have doubts about the accuracy of his statement. Since my credit score is only about 500-600, I'm thinking they will just take the house and not give me another mortgage.
I was unempoyed for 9 months, but for the past year and a half I've had a very good, very secure job with a utility company.
Doesn anyone have an idea what the likely scenario will be? I'm very curious how this will probably play out and would love to know the opinions of others, especially those who may be familiar with this type of situation.
Hi emailnickmerchant,
If you have reaffirmed the mortgage when you were in Chapter 7 bankruptcy, then you're not personally liable for paying the mortgage dues. As you're not personally liable for paying the dues, the lender will not modify the loan. If the lender does not receive his payments on time, then he would foreclose the property but he won't come after you for the balance amount resulting from the sale.
Thanks
If you have reaffirmed the mortgage when you were in Chapter 7 bankruptcy, then you're not personally liable for paying the mortgage dues. As you're not personally liable for paying the dues, the lender will not modify the loan. If the lender does not receive his payments on time, then he would foreclose the property but he won't come after you for the balance amount resulting from the sale.
Thanks