Posted on: 29th Sep, 2009 04:12 pm
our chapter 7 bk was discharged in may 2009. our attorney advised us not to reaffirm our home loan...we were upside down by about $60k on the first and included a 2nd, approx $50k, in the bankruptcy. we stopped paying on the 2nd in 2008, following the advice of our attorney, but have never missed a payment on the 1st. home values continue to fall in our area, and we're now about $100k upside down on the first. we'd like to try to get the principal reduced and our loan modified. we've tried contacting our mortgage company, but they won't respond. they send us 'receipts' for our payments monthly rather than regular mortgage statements. before we paid and retained our bk attorney, she told us that she could have the 2nd mortgage lien lifted. just before the discharge, she told us that the lien couldn't be lifted since we had filed chapter 7. now we can't refinance, because then the 2nd lienholder would move into first lienholder position, or so we've been told. now that the bankruptcy has been discharged, our former attorney won't give us the time of day.
we feel like we're throwing our money away every month, and don't know if there's any hope at this point to keep our home, or if we should just walk away from it?
if we do walk away from it, will there be a foreclosure on our credit report in addition to the bankruptcy? we're trying very hard to rebuild our credit and just don't know what to do.
we would appreciate it so much if anyone has any info that might help!
thanks
we feel like we're throwing our money away every month, and don't know if there's any hope at this point to keep our home, or if we should just walk away from it?
if we do walk away from it, will there be a foreclosure on our credit report in addition to the bankruptcy? we're trying very hard to rebuild our credit and just don't know what to do.
we would appreciate it so much if anyone has any info that might help!
thanks
Hi palumbodk,
I guess you did not reaffirm your first mortgage even. In that case, you are not personally liable for paying off the mortgage dues to the mortgage holder but the lender would still hold a lien on your property. Though you are making the payments now, the lender may not report it to the credit bureau and thus he is not sending you the mortgage statements.
If you walkaway from the property now, the lender would foreclose the property and recover the dues. The foreclosure would be mentioned in your credit report and would affect your credit score.
Thanks
I guess you did not reaffirm your first mortgage even. In that case, you are not personally liable for paying off the mortgage dues to the mortgage holder but the lender would still hold a lien on your property. Though you are making the payments now, the lender may not report it to the credit bureau and thus he is not sending you the mortgage statements.
If you walkaway from the property now, the lender would foreclose the property and recover the dues. The foreclosure would be mentioned in your credit report and would affect your credit score.
Thanks