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 reaffirmed on our house in a ch 7 bankruptcy and now we can't pay it. It states on our credit report "discharged through ch7). Our bankruptcy has been discharged. If we do a short sale or foreclosure will we be responsible for the unpaid balance?
Hi Lisa,
As you had reaffirmed the mortgage dues, you would be responsible for paying the deficient balance resulting from the sale of the property though your bankruptcy has been discharged.
Thanks
As you had reaffirmed the mortgage dues, you would be responsible for paying the deficient balance resulting from the sale of the property though your bankruptcy has been discharged.
Thanks
my husband and i filed for chapter 7 bankruptcy in 2008. it has since been discharged. we did not reaffirm our mortgage, however continued to make our payments. unfortunately, we are no longer able to afford our payments, trying to clearly understand if this will affect my credit. currently, our credit reflects the mortgage as being included in the chapter 7 with a zero balance owed.
Hi kidz!
Welcome to forums!
If you do not make the payments on time, the lender will foreclosure the property which will have a negative affect on your credit report. Your credit score would go down by 250 points.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you do not make the payments on time, the lender will foreclosure the property which will have a negative affect on your credit report. Your credit score would go down by 250 points.
Feel free to ask if you've further queries.
Sussane
They can't come after you if the debt was discharged. They can't report debt as included in Bankruptcy and then foreclosure- only IIB. Reporting as foreclosed after is violation of bankruptcy injunction and discharge order.
OUR CHAPTER 7 WAS DISCHARGED IN JAN. OF THIS YEAR AND WE DID NOT REAFFIRM ON OUR HOME, OUR CREDIT REPORT SHOWS DISCHARGED IN BANKRUPTCY BUT, WE HAVE MADE PAYMENTS ON THE HOUSE SINCE WE FILED IN SEPT.09. I HATE THE HOUSE AND WE HAVE SINCE HAD A LARGE MEDICAL HARDSHIP AND MY LOAN IS WITH B OF A AND WE HAVE DECIDED WE DO NOT WANT THE HOUSE WE DO NOT QUALIFY FOR A MODIFICATION UNDER ANY OF THE PROGRAMS ANYWAY. WE ARE STILL IN THE HOUSE WHAT DO WE DO NEXT I AM GOING TO STOP MAKING PAYMENTS I.
Hi MICROPAT,
As you haven't signed the reaffirmation agreement with your lender, you are not liable for the mortgage dues personally. You can surrender the property to the lender and stop the mortgage payments. Your lender will foreclose the property in order to recover the dues. However, you won't be liable for paying the deficient balance resulting from the sale.
Thanks,
Jerry
As you haven't signed the reaffirmation agreement with your lender, you are not liable for the mortgage dues personally. You can surrender the property to the lender and stop the mortgage payments. Your lender will foreclose the property in order to recover the dues. However, you won't be liable for paying the deficient balance resulting from the sale.
Thanks,
Jerry
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My chapter 7 was discharged 12/08. House was discharged with 0 balance. I still make my monthly payments on time to live there but have had so many problems with the house- I lost 1/2 of my home -the sellers did not disclose water/flood problems and my entire finsihed basement was destroyed 3 months to the day I bought my home. To make it worse, they hid black mold behind walls)
I have been making due with 1/2 a home and gutted basement. I was recently remarried, now a family of 4 and would like to start over. The value has dropped over $50K on what is owed and we are very frustrated. I understand that I am not obligated to pay since the property was completely discharged but that the bank can foreclose on the house if we leave.
We found a home that is for sale by owner who is willing to wait until the date when my discharge will be 2 years. If the current house has already been discharged with a 0 balance and it does foreclose or I request a deed in lieu 1) will the foreclosure/deed in lieu show on my credit report even though it was discharged? 2) will it prevent me from being able to get a new mortgage if we decide to stop payment/abandon the property?
My chapter 7 was discharged 12/08. House was discharged with 0 balance. I still make my monthly payments on time to live there but have had so many problems with the house- I lost 1/2 of my home -the sellers did not disclose water/flood problems and my entire finsihed basement was destroyed 3 months to the day I bought my home. To make it worse, they hid black mold behind walls)
I have been making due with 1/2 a home and gutted basement. I was recently remarried, now a family of 4 and would like to start over. The value has dropped over $50K on what is owed and we are very frustrated. I understand that I am not obligated to pay since the property was completely discharged but that the bank can foreclose on the house if we leave.
We found a home that is for sale by owner who is willing to wait until the date when my discharge will be 2 years. If the current house has already been discharged with a 0 balance and it does foreclose or I request a deed in lieu 1) will the foreclosure/deed in lieu show on my credit report even though it was discharged? 2) will it prevent me from being able to get a new mortgage if we decide to stop payment/abandon the property?
hi guest!
welcome to forums!
as far as i know, if you go for a deed in lieu of foreclosure or a foreclosure, it would be mentioned in your credit report though the property was included in your bankruptcy filing. after a foreclosure, you may have to wait for at least 3-4 years in order to qualify for a loan.
feel free to ask if you've further queries.
sussane
welcome to forums!
as far as i know, if you go for a deed in lieu of foreclosure or a foreclosure, it would be mentioned in your credit report though the property was included in your bankruptcy filing. after a foreclosure, you may have to wait for at least 3-4 years in order to qualify for a loan.
feel free to ask if you've further queries.
sussane
received a dischagre from chapter 7 in 09 including my mortgage, with no reaffirmation. I lived in the house for almost a year, paying the mortgage. times are tuff, and since I am not responsible for the mortgage payments , can I walk away and how do I get my name off the deed?
also am I still responsible for the HOA maintenance payments monthly and the taxes?.
also am I still responsible for the HOA maintenance payments monthly and the taxes?.
discharge in chapter 7 including mortgage. lived in condo paying the monthly mortgage. Times are tuff, can I walk away since I legally don't owe any dollars? how do I get my name off the deed?
will the bank accept a quick claim deed? discharge chapter 7 BK...
hi kk,
as you haven't reaffirmed your mortgage, you are not personally liable for the mortgage payments. you can surrender the property to the lender by signing a quit claim deed. the lender will foreclose the property to sell it off and recover his dues. unless the lender sells of the property, you would be liable hoa maintenance payments and taxes.
thanks
as you haven't reaffirmed your mortgage, you are not personally liable for the mortgage payments. you can surrender the property to the lender by signing a quit claim deed. the lender will foreclose the property to sell it off and recover his dues. unless the lender sells of the property, you would be liable hoa maintenance payments and taxes.
thanks
Last year me and my husband had to file br (fresh start) but we decided to keep our house and not inclued it with the rest of our bills. now we are having a big problem been having this house on the market and not even one offer. and on topo of all this our house even if sold would not cover the mortgage . so me and my husband are thinking to just give it up . can we still do this? our because we filled for bankrupcy we cant walk away from it? and if we do walk away can they make us liable for something? thank you for any advice
Hi rosalinda,
Though you filed bankruptcy, you can still walkaway from the property. However, if you do so, it would result into a foreclosure which will have negative affect on your credit report. You can retain the property and get an affordable payment plan by applying for a loan modification.
Thanks
Though you filed bankruptcy, you can still walkaway from the property. However, if you do so, it would result into a foreclosure which will have negative affect on your credit report. You can retain the property and get an affordable payment plan by applying for a loan modification.
Thanks