Posted on: 18th Feb, 2009 01:27 pm
Life after bankruptcy discharge - worried about keeping home...We filed bankruptcy in late 2005. Discharge was in 2006. Right before the filing of the bankruptcy, we re-financed our home mortgage to an interest-only 5-1 arm so that we could afford the mortgage payment. (at that time, husband was unemployed).
Now, 5 yrs is getting close. Home value is below the mortgage loan. When looking at credit, the home mortgage was discharged. If we get to the point where we can't pay the mortgage (after the 5 yrs are up) how does the process work, since it's already discharged? Still goes to foreclosure? Is that yet another black mark on our credit, even though it's already been marked negatively with the bankruptcy? And the home loan is listed as a negative mark being discharged. Did trying to keep our home at the time of the bankruptcy end up being a mistake and, ultimately being a second negative if we can't re-finance or sell the house or make the house payments after the bankruptcy, but 5 yrs later?
Very confused on how the situation stands and what our options are in the future...
House very hard to sell. right before bankruptcy, we had it on market for about one yr. it is a two story in a town tin Nevada hat seems to draw retirees. They don't even want to look at 2 story homes.
Any suggestions would be greatly appreciated. Don't know where to turn, and getting very worried.
Now, 5 yrs is getting close. Home value is below the mortgage loan. When looking at credit, the home mortgage was discharged. If we get to the point where we can't pay the mortgage (after the 5 yrs are up) how does the process work, since it's already discharged? Still goes to foreclosure? Is that yet another black mark on our credit, even though it's already been marked negatively with the bankruptcy? And the home loan is listed as a negative mark being discharged. Did trying to keep our home at the time of the bankruptcy end up being a mistake and, ultimately being a second negative if we can't re-finance or sell the house or make the house payments after the bankruptcy, but 5 yrs later?
Very confused on how the situation stands and what our options are in the future...
House very hard to sell. right before bankruptcy, we had it on market for about one yr. it is a two story in a town tin Nevada hat seems to draw retirees. They don't even want to look at 2 story homes.
Any suggestions would be greatly appreciated. Don't know where to turn, and getting very worried.
The bank was foreclosing on me therefore I had to do chapter 13... to find out that after 5 yrs and 50,000 payments - that everyone who didnt get paid thats almost all original debts... as there were so many new fees involved in this 13.... will still come after me. So that was a waste of time... also found out that the Liens on my house no matter how small can foreclose on me anytime after that or if I convert to ch7 after one year safety sanction. And force me into foreclosure. Seems like the only thing I can do is walk away.... any other ideas?
I would suggest you to have a word with a bankruptcy attorney first and chek out whether or not the creditor's will be able to come after you. If you walkaway from the property, the lender will foreclose it and you would be responsible for the deficient balance resulting from the sale of your property.
My bankruptcy was discharged on 3/16/2010. My house was not in the bankruptcy. Payments are current and I have no problem paying the mortgage. If I want reaffirmation, I now have to reopen the bankruptcy. My attorney feels it is better if I do not reaffirm...just stay current. He suggests that because if anything happens I won't be liable. Still, my credit will be affected if I don't reaffirm because the lender will not report my payment history. What are the pros and cons. Thx.
Hi elaine,
In my opinion, it would be good if you reaffirm your mortgage. Once you make the payments after reaffirmation, the lender will report it to the credit bureaus and your credit would get improved.
Thanks
In my opinion, it would be good if you reaffirm your mortgage. Once you make the payments after reaffirmation, the lender will report it to the credit bureaus and your credit would get improved.
Thanks
My daughter is selling home that I cosigned for her, she made all the payments. I filed for bankrupcy and have been discharged last year. Will she hve to give up any monies that she makes on the house sale?
Welcome joe,
Your daughter won't have to give away the money that she makes from the property sale. However, if there is a mortgage on the property, then she will have to clear it off once she sells the property.
Your daughter won't have to give away the money that she makes from the property sale. However, if there is a mortgage on the property, then she will have to clear it off once she sells the property.
Hi,
I reaffirmed 1st and 2nd mortgage and have been paying the mortgage on time since the discharge in 12/2006. Both lenders do not report my payments to the credit agencies. I'm trying to build my score, currently 640. What is the max score I can get with a BK and if I have been paying all my bills on time? I do have 2 credit cards that are max'd out. I'm willing to pay them off but will that be enough to get my score to 700?
Thanks
I reaffirmed 1st and 2nd mortgage and have been paying the mortgage on time since the discharge in 12/2006. Both lenders do not report my payments to the credit agencies. I'm trying to build my score, currently 640. What is the max score I can get with a BK and if I have been paying all my bills on time? I do have 2 credit cards that are max'd out. I'm willing to pay them off but will that be enough to get my score to 700?
Thanks
Hi rod,
If you've reaffirmed the mortgages, then the lender should report your monthly mortgage payments to the credit bureaus. You should contact the lender and ask him to report the payments to the bureaus. If you pay off the credit cards, it will definitely help you in increasing your scores. But it's difficult to say as to how much your score would improve.
If you've reaffirmed the mortgages, then the lender should report your monthly mortgage payments to the credit bureaus. You should contact the lender and ask him to report the payments to the bureaus. If you pay off the credit cards, it will definitely help you in increasing your scores. But it's difficult to say as to how much your score would improve.
Hi, my debtor filed a chapter 7 in the state of AL. He represented himself and told the court he had no assets. We have the title to the mobile home and he has been discharged. What can we do?
Welcome Alice,
You need to contact an attorney and take his opinion in this matter. He will guide you as to what steps you need to take in this regard and what can you do with the title of the mobile home.
You need to contact an attorney and take his opinion in this matter. He will guide you as to what steps you need to take in this regard and what can you do with the title of the mobile home.
Thanks so much and have a great day.
i filed bankrutpcy and got dischared from court i mentioned my home loan in it but the home is still in my custudy bank is planning to foreclose it my question is this after foreclousure i am not liable to pay any difference or i do
no i want bank to forclosure my property i did not reffirm my loan or make any payment do i still reponsible that loan?
Hi shan!
Welcome to forums!
If you haven't reaffirmed the mortgage, then you can surrender the property to the lender. He will foreclose it and recover as much amount as possible. You won't be liable for paying the balance amount resulting from the sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you haven't reaffirmed the mortgage, then you can surrender the property to the lender. He will foreclose it and recover as much amount as possible. You won't be liable for paying the balance amount resulting from the sale.
Feel free to ask if you've further queries.
Sussane
I filed chapter 7 almost 2 years ago. Lawyer didn't reaffirn mortgage with Chase. We were paying on time, but we realized it wasn't reporting(helping our credit score). We called Chase and they wanted to put us on a loan modification. I thought this would help us improve our credit and get it back reporting. All they did was make it where we are behind on payments....We are still involved in this loan modification with them. Could we just walk away from our mortgage since we didn't reaffirm? Dealing with Chase is a nightmare. And is it possible to qualify for a new mortgage.