Posted on: 18th Jan, 2009 10:44 am
My husband and I filed for bankruptcy in September 08 after I lost my job. We did this to eliminate our unsecured debt and free up the cash to continue to make our house payments. Our attorney petitioned Citi Mortgage to reaffirm our mortgage. Our bk was discharged in December and I pulled our credit report to see that the mortgage account has been closed with a zero balance and was included in our discharge. Citi has told us that we can reaffirm IF the judge reopens the case and we were told by our attorney that he will not. We can continue to live here and make payments but they will not be reported. If we are essentially "renting" our home now, we can rent something much nicer for far less (we bought at the height of the bubble in 2007 and our house is not worth almost $50K less than our mortage is for). My question is this...if we walk away can the mortgage company report a foreclosure on a loan that was already discharged? Should we do a DIL - do we even have to do that since the mortgage was discharged. We were told by our attorney that we should act quickly if we are going to give up the house so it is seen as one hit. Any help would be greatly appreciated. Thanks.
Hi D,
A query similar to yours has been answered in the given link:
http://www.mortgagefit.com/bankruptcy/ch7-buyhome.html#104045
Please take a look. I hope it'll help you.
Sussane
A query similar to yours has been answered in the given link:
http://www.mortgagefit.com/bankruptcy/ch7-buyhome.html#104045
Please take a look. I hope it'll help you.
Sussane
i had a chapter 7 bankruptcy which was discharged in may 09. none of the banks who own my properties have completed the foreclosure process on the houses. i am worried that they will delay the foreclosures to keep the home off their balance books. not a big deal expect that i've heard that the city can still fine me for not upkeeping the places since my name would still be on the deeds. should i attempt a deed in lieu to hurry the process along or will this hurt me with taxes or in some other way?
Hi JGold,
Your query has been answered in the given link:
http://www.mortgagefit.com/bankruptcy/foreclosure-dil.html
Please take a look at it. I hope it'll help you.
Thanks
Your query has been answered in the given link:
http://www.mortgagefit.com/bankruptcy/foreclosure-dil.html
Please take a look at it. I hope it'll help you.
Thanks
I FILED CHAPTER 7 AND I DIDNT INCLUDE MY HOUSE. NOW IM UNEMPLOYED AND CANT AFFORD IT ANY LONGER. MY CASE HAS BEEN DISCHARGED CAN I STILL INCLUDE MY HOUSE?
Hi RISSA,
As your bankruptcy has already been discharged, you won't be able to include your house in it. You've mentioned that you are unemployed and won't be able to afford the property anymore. In that case, it would be better if you could apply for a deed in lieu foreclosure with your lender. This will help you in selling off the property and you won't be liable for the deficient amount as well.
Take care.
As your bankruptcy has already been discharged, you won't be able to include your house in it. You've mentioned that you are unemployed and won't be able to afford the property anymore. In that case, it would be better if you could apply for a deed in lieu foreclosure with your lender. This will help you in selling off the property and you won't be liable for the deficient amount as well.
Take care.
Our chapter 7 bankruptcy was discharged in Feb, 2009....two months later our camper and car were repo'ed. Later we received a check from the camper for refunded gap and term life insurance. We went to the dealer to see about getting that fro the car too..and was told GMAC closed it and took the money in April of 2009...after the discharge. Can they legally do this?
You need to contact GMAC and resolve the issue. But it would be better if you could contact your bankruptcy attorney and speak with him regarding this issue.
I'm in California. Chapter 7 discharged, but trustee selling an asset so our case is "open." I did not reaffirm mortgage on house; the crecit report shows the mortgage "included in bankruptcy."
BofA has not yet gotten around to foreclosing although they say they will. Once they have foreclosed, are you saying that this actual foreclosure will NOT be listed separately on the credit report ????
Can anyone cite any law regarding that, because BofA has been very difficult to work with (I was originally w/ Countrywide and BofA bought them.) I cannot get any real consistent answer and as I'm working on rebuilding credit, it would be very helpful to know how huge a hit my credit will take -- the BK is bad enough, but to top it off with a foreclosure in the near future is awful. And BofA is not rushing to foreclose for some odd reason.
Anybody know ????
BofA has not yet gotten around to foreclosing although they say they will. Once they have foreclosed, are you saying that this actual foreclosure will NOT be listed separately on the credit report ????
Can anyone cite any law regarding that, because BofA has been very difficult to work with (I was originally w/ Countrywide and BofA bought them.) I cannot get any real consistent answer and as I'm working on rebuilding credit, it would be very helpful to know how huge a hit my credit will take -- the BK is bad enough, but to top it off with a foreclosure in the near future is awful. And BofA is not rushing to foreclose for some odd reason.
Anybody know ????
Hi Marilyn,
Your query has been replied in the given page:
http://www.mortgagefit.com/bankruptcy/discharge-foreclosure.html
Please take a look at it. I hope it'll help you.
Thanks
Your query has been replied in the given page:
http://www.mortgagefit.com/bankruptcy/discharge-foreclosure.html
Please take a look at it. I hope it'll help you.
Thanks
I have a similar problem. We filed for CH 7 Bk and discharged 11/2006. The house was included in the CH 7. No reaffirm. We left the house before the BK discharged. The house shows on the CB as "foreclosure, debt included in CH 7 BK" and has reported that way since 11/2006. For some reason, the Mortgage company updated the reporting, didn't change anything other than the report date to 05/2009. When we went through Automated Underwriting today, we got kicked a Approved-Referred because of late mortgage payments. The home has not been ours or our responsibility since 11/2006. Can they do this?
Hi Kaysee,
Though your bankruptcy has been discharged, the lender still holds the lien on the property. You are required to pay off the delinquent amount to the lender. You have left the property but did you officially surrendered the property to the lender? If you surrender the property to the lender, he would sell it off at a foreclosure auction. Once the property is sold off, then you won't be liable for any other dues. I guess, the property has not be sold and it's still showing in your name. As a result, the credit report shows that your are delinquent on your mortgage payments.
Though your bankruptcy has been discharged, the lender still holds the lien on the property. You are required to pay off the delinquent amount to the lender. You have left the property but did you officially surrendered the property to the lender? If you surrender the property to the lender, he would sell it off at a foreclosure auction. Once the property is sold off, then you won't be liable for any other dues. I guess, the property has not be sold and it's still showing in your name. As a result, the credit report shows that your are delinquent on your mortgage payments.
hi, we had a chapter 7 discharge in april, the bank is now foreclosing on the house at a higher amount than the discharge. Are we responsible for the difference in the amount?
Hi Guest!
Welcome to forums!
As the mortgage was discharged in Chapter 7, you are not personally liable for it. If the lender forecloses the property, then you won't have to pay the deficient amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the mortgage was discharged in Chapter 7, you are not personally liable for it. If the lender forecloses the property, then you won't have to pay the deficient amount.
Feel free to ask if you've further queries.
Sussane
my husband and I filed chapter 13 in 06 and converted to a chapter 7 in 07 we included our mortgage in both 13 and 7 and walked away from the house. We were dicharged in March of 08 and the mortgage company proceeded with forclosure in may of 08 and sold the house in June of 08. Now our credit says forclosure and we cannot get a mortgage? Do we have the right to fight this?
Hi sstarnes!
Welcome to forums!
I do not think you have much ground to fight. Though you walked away from the property and got your bankruptcy discharged, the lender was still holding the lien on the property. Thus, he foreclosed the property to recover his dues. This foreclosure would be definitely mentioned in your credit report and will also lower your credit score. However, you won't have to pay the deficient amount resulting from the sale. Thus, you're unable to get a mortgage right now. You'll have to wait for 3-4 years after a foreclosure to get a new mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I do not think you have much ground to fight. Though you walked away from the property and got your bankruptcy discharged, the lender was still holding the lien on the property. Thus, he foreclosed the property to recover his dues. This foreclosure would be definitely mentioned in your credit report and will also lower your credit score. However, you won't have to pay the deficient amount resulting from the sale. Thus, you're unable to get a mortgage right now. You'll have to wait for 3-4 years after a foreclosure to get a new mortgage.
Feel free to ask if you've further queries.
Sussane