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.
Hi erika,
If you have equity in your property, then you will be able to refinance your mortgage and get the required amount of loan. You will have to include the mortgage as one of your debts. If no one lends you money, then you won't be able to refinance and in that case you will have to pay as per your present loan terms.
Feel free to ask if you've further queries.
Sussane
If you have equity in your property, then you will be able to refinance your mortgage and get the required amount of loan. You will have to include the mortgage as one of your debts. If no one lends you money, then you won't be able to refinance and in that case you will have to pay as per your present loan terms.
Feel free to ask if you've further queries.
Sussane
Hello,
Maybe someone can help me. I filed Chapter 7 back in early 2011. Case was discharged in April 2011. All unsecured debt was wiped clean. I reaffirmed my car, which has been paid off, traded and a newer car purchased in full with cash I saved over a year. Mortgage was reaffirmed too. I have made all my mortgage payments on time every month. I still don't have credit cards, but have been offered some. Don't need credit. Lived without it before, can live without it again.
The issue I'm having is not that I'm not able to make my mortgage payments it's the manner in which my mortgage company accepts their payments just because I filed Chapter 7. It's frustrating as hell. The only option I have is by mail or calling customer service. Calling every month is starting to wear on my patience.
They always try to charge me a $20 fee, which every time I have to explain to them that this is the only option I have to make payments and I request them to waive the fee. They always waive the fee after me asking them kindly to. Just because of my BK, I am not eligible for bi-monthly payments or ACH payments, thus cutting the mortgage down in terms of the amount of years I owe. If I send them extra money, which I usually do this by mail and indicate 'Principle Only', they hold it in 'Unapplied funds' Right now, I have what amounts to 3 regular mortgage payments in this 'unapplied funds' Makes me feel like they stole my money. It cleared my bank., just apply it already. I'm just trying to do right and I think it's utter BS, that this is the only option I have to pay my mortgage. I do can not wait to have this paid off. $50 grand to go.
We live in the 21st century, yet I'm making my payments using 30 year old technology. This makes no sense whatsoever. Has anyone ever had the same issue?
Maybe someone can help me. I filed Chapter 7 back in early 2011. Case was discharged in April 2011. All unsecured debt was wiped clean. I reaffirmed my car, which has been paid off, traded and a newer car purchased in full with cash I saved over a year. Mortgage was reaffirmed too. I have made all my mortgage payments on time every month. I still don't have credit cards, but have been offered some. Don't need credit. Lived without it before, can live without it again.
The issue I'm having is not that I'm not able to make my mortgage payments it's the manner in which my mortgage company accepts their payments just because I filed Chapter 7. It's frustrating as hell. The only option I have is by mail or calling customer service. Calling every month is starting to wear on my patience.
They always try to charge me a $20 fee, which every time I have to explain to them that this is the only option I have to make payments and I request them to waive the fee. They always waive the fee after me asking them kindly to. Just because of my BK, I am not eligible for bi-monthly payments or ACH payments, thus cutting the mortgage down in terms of the amount of years I owe. If I send them extra money, which I usually do this by mail and indicate 'Principle Only', they hold it in 'Unapplied funds' Right now, I have what amounts to 3 regular mortgage payments in this 'unapplied funds' Makes me feel like they stole my money. It cleared my bank., just apply it already. I'm just trying to do right and I think it's utter BS, that this is the only option I have to pay my mortgage. I do can not wait to have this paid off. $50 grand to go.
We live in the 21st century, yet I'm making my payments using 30 year old technology. This makes no sense whatsoever. Has anyone ever had the same issue?
Hi Daniel,
Your money has not been stolen. The next time when your payment date comes, you should call them, and ask them to use the "not-applied funds" to pay off the monthly payments. This may help you sort out the matter.
Thanks
Your money has not been stolen. The next time when your payment date comes, you should call them, and ask them to use the "not-applied funds" to pay off the monthly payments. This may help you sort out the matter.
Thanks
I'm thinking trying to offer a payoff to them. Maybe a one time settlement. I have 25K in the bank. Since I only owe 50K I figured maybe I can offer that to them plus the 3 payments they have sitting in that unapplied funds. I've heard that some are successful in doing this. Problem is that will deplete my savings down to nothing but I will have absolutely zero debt. No credit cards, loans, car loans. Only bills will be monthly condo fee, utilities, taxes. My credit is still shot to hell due to the BK, but I know that. It is actually getting better.
I'm sick of Citimortgage and their antics and their funny math.
I'm sick of Citimortgage and their antics and their funny math.
Hi Daniel,
You can go for this option provided you agree to deal with the depleted savings. However, it is true that being debt free will give you complete peace of mind.
You can go for this option provided you agree to deal with the depleted savings. However, it is true that being debt free will give you complete peace of mind.
Thanks Adonis. I'm not saying I will be successful in attempting this. I've heard of people doing this will some degree of success. Bringing cash to the table is always good leverage. Citimortgage could still say no. The amount in interest alone they have gotten from me over the years should be enough for them.
I had my mortgage discharged in 2008 chapter 7 bancruptsy, if I would walk now because I'm way upside down would in hurt my credit even if it isn't being reported
Hi jimmy,
If you walk away from the house and it is foreclosed but the lender does not report it to the credit bureaus, then it won't have a negative impact on your credit.
Thanks
If you walk away from the house and it is foreclosed but the lender does not report it to the credit bureaus, then it won't have a negative impact on your credit.
Thanks
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