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.
we filed for bankruptcy in 2008 and discharge of debts was in april,2009. we cannot afford to keep our house. the mortgage lenders were on the discharge debts list. should be call the lenders and let them know we are vacating the property
Hi pepper!
Welcome to forums!
You can inform the lender that you will not be able to pay the mortgage dues henceforth and thus you are surrendering the property. The lender will foreclose the property and recover his dues and you won't be responsible for the deficient balance amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can inform the lender that you will not be able to pay the mortgage dues henceforth and thus you are surrendering the property. The lender will foreclose the property and recover his dues and you won't be responsible for the deficient balance amount.
Feel free to ask if you've further queries.
Sussane
Are you sure they report the foreclosure on your credit report? If they do cant you get it removed legally?
Thanks
Scott
Thanks
Scott
Our Bk was discharged in 11/09, this month I was contacted to do a short sale on my home since I am still on title. The short sale is approved! I have a letter stating from lender that they will not go after me for and more monies anfd that the acct is settled. My question is can ANYONE come after me for anything since this debt was already included in the bk? I know i will get a 1099..but is that it. I'm I opening a can of worms Im I really ok to do this?
our bankruptcy was discharged in 11/09 we have a first and second mortgage we reaffirmed the first mortgage and did not with the second mortgage the second mortgage holds a lien on the property. we have not made a payment to our second mortgage and they are threating to foreclose on our house. can they do that if we are still making payments on our first mortgage?
Hi Help,
As the mortgage was included in bankruptcy, the lender will not be able to come after you for the deficient balance after a short sale. Moreover, the lender has given it to you in writing that they won't sue you for the balance amount so you shouldn't worry about it.
Hi gmeyer,
Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about34994.html#151068
Take a look at it. Hope it helps you.
As the mortgage was included in bankruptcy, the lender will not be able to come after you for the deficient balance after a short sale. Moreover, the lender has given it to you in writing that they won't sue you for the balance amount so you shouldn't worry about it.
Hi gmeyer,
Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about34994.html#151068
Take a look at it. Hope it helps you.
I filed for chapter 7 and was granted full discharge in oct 2008. my property, both 1 &2 lenders loans included. I surrendered the property in the bankruptcy at that time. The property deed and loans are still in my name, as they (GMAC) have not forclosed or even set a date for auction as of today!
My question relate to this..................
I have a motivated/interested buyer............GMAC is willing to negotiate with them to make a short sale of the property vs. forclosure..........But they wont do it unless I submit a FULL short sale packet to them, complete with hardship letter AND the also want to know all of my current financial, checking and tax info included. As i have already surrendered said property and been discharged from any financial responsibility, will giving them all my new info and financials ( we have since moved 3500 miles and had to relocate to another state to find jobs and get reestablished) make me somehow responsible again for any or all of the debt relating to this possible transaction???? Is ther some form of hidden reaffirmation responsibilities hidden in theese short sale packets they want???
My question relate to this..................
I have a motivated/interested buyer............GMAC is willing to negotiate with them to make a short sale of the property vs. forclosure..........But they wont do it unless I submit a FULL short sale packet to them, complete with hardship letter AND the also want to know all of my current financial, checking and tax info included. As i have already surrendered said property and been discharged from any financial responsibility, will giving them all my new info and financials ( we have since moved 3500 miles and had to relocate to another state to find jobs and get reestablished) make me somehow responsible again for any or all of the debt relating to this possible transaction???? Is ther some form of hidden reaffirmation responsibilities hidden in theese short sale packets they want???
Hi Tenli,
Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about35162.html#151611
Take a look at it. Hope it helps you.
Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about35162.html#151611
Take a look at it. Hope it helps you.
this is a wonderful forum for people who have questions about foreclosures after bankruptcy. i had a chapter 7 bankruptcy in 2003 and my mortgage was discharged, although i still made full payments until september of this year. i was worried that my foreclosure was going to affect my credit report and i asked gmac about this. the following is from an email they sent me:
"in response to your inquiry, gmac mortgage will continue to report to the credit bureaus in the same manner that all other loans are reported. this reporting will have no impact on your credit report (positive or negative) because the bureaus no longer acknowledge the debt. if the you do not pay the debt as stated in the mortgage/deed of trust, foreclosure proceedings will occur."
"in response to your inquiry, gmac mortgage will continue to report to the credit bureaus in the same manner that all other loans are reported. this reporting will have no impact on your credit report (positive or negative) because the bureaus no longer acknowledge the debt. if the you do not pay the debt as stated in the mortgage/deed of trust, foreclosure proceedings will occur."
We filed bankruptcy a year ago and was fully discharged. Both mortgage creditors were informed (we have two houses). That time, we can keep both. Now with a bad renter, even with a loan modification, we can only keep one. What will happen if I foreclosed one of them? Are we still liable for deficiency judgement?
Hi Robby,
If you filed Chapter 7 and reaffirmed your debts, you would be liable for paying the deficient balance if the lender forecloses the property.
Take care.
If you filed Chapter 7 and reaffirmed your debts, you would be liable for paying the deficient balance if the lender forecloses the property.
Take care.
Thanks Sara,
I don't remember and I'm positive that we reaffirmed those mortgage debts. Although as of this time, they (mortgage companies) hasn't start any foreclosure proceedings. Is it because we're paying on time? At that time, we still can afford to keep both houses, having a good renter. Now , she lost her job and they are 3 months behind. Their rent goes to one of the mortgages, and so am I. Now, if they forecloses the house, will there be taxes I have to pay?
Thanks,
Robby
I don't remember and I'm positive that we reaffirmed those mortgage debts. Although as of this time, they (mortgage companies) hasn't start any foreclosure proceedings. Is it because we're paying on time? At that time, we still can afford to keep both houses, having a good renter. Now , she lost her job and they are 3 months behind. Their rent goes to one of the mortgages, and so am I. Now, if they forecloses the house, will there be taxes I have to pay?
Thanks,
Robby
Hi Robby!
Welcome to forums!
If you've reaffirmed the debt and paying the dues on time, the lender will never foreclose the property. Rather your payments would be reported to the credit bureau which would have a positive effect on your credit report. As you are personally liable for the loan, the lender will be able to claim the deficient amount from you. If the lender forgives the debt, then you may have to pay taxes as it would be considered your income by the IRS. However, depending upon the Mortgage Debt Relief Act, you may not have to pay the taxes.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you've reaffirmed the debt and paying the dues on time, the lender will never foreclose the property. Rather your payments would be reported to the credit bureau which would have a positive effect on your credit report. As you are personally liable for the loan, the lender will be able to claim the deficient amount from you. If the lender forgives the debt, then you may have to pay taxes as it would be considered your income by the IRS. However, depending upon the Mortgage Debt Relief Act, you may not have to pay the taxes.
Feel free to ask if you've further queries.
Sussane
Hi Sussane,
I have a same different situation with Robby. Only difference is we never reaffirmed the 2 mortgages. Now we're thinking of foreclosing one. Do we have to pay any deficiency judgement and taxes in the end?
Thanks,
Lee B
I have a same different situation with Robby. Only difference is we never reaffirmed the 2 mortgages. Now we're thinking of foreclosing one. Do we have to pay any deficiency judgement and taxes in the end?
Thanks,
Lee B
Hi Lee,
As you haven't reaffirmed your mortgage with your lender, you are not personally liable for the loan. The lender will be able to foreclose the property but he will not be able to sue you for the deficient balance resulting from the sale.
Take care.
As you haven't reaffirmed your mortgage with your lender, you are not personally liable for the loan. The lender will be able to foreclose the property but he will not be able to sue you for the deficient balance resulting from the sale.
Take care.