Posted on: 29th Mar, 2010 01:35 pm
hello, i'm hoping someone can please help. My husband and I filed Chapter 7 in 2007. During the bk we tried to pay our mortgage and the bank wouldn't accept payment. After the bk was discharged we tried to make payment again and it was denied again. We then found out that we didn't reaffirm our home, we had no idea we had to reaffirm, our bk lawyer never mentioned it at all.
We conacted the bank to find out why they didn't accept our payment and was told that because we didn't pay our mortgage during the bk, even though we tried and they denied payment, that we are responsible for late charges and the payments that they would't accept, total was 19,000 in fees and back payments. They agreed to add this amount to the back end of the loan. They sent us paperwork, we had to fill out a letter of hardship, we signed and have been paying ever since.
We now find ourselfs in a situation that we can no longer afford the mortgage, my husband lost his job and my hours were reduced. Question is, can we walk away from the home without any repercussions? The home was discharged, do we even have a loan anymore? It doesn't report on our credit. If we do leave the home and the bank forecloses would the forclosure go on our credit if the home is discharged. We are so confused...
We conacted the bank to find out why they didn't accept our payment and was told that because we didn't pay our mortgage during the bk, even though we tried and they denied payment, that we are responsible for late charges and the payments that they would't accept, total was 19,000 in fees and back payments. They agreed to add this amount to the back end of the loan. They sent us paperwork, we had to fill out a letter of hardship, we signed and have been paying ever since.
We now find ourselfs in a situation that we can no longer afford the mortgage, my husband lost his job and my hours were reduced. Question is, can we walk away from the home without any repercussions? The home was discharged, do we even have a loan anymore? It doesn't report on our credit. If we do leave the home and the bank forecloses would the forclosure go on our credit if the home is discharged. We are so confused...
Hi tracey!
Welcome to forums!
As you filed Chapter 7 and did not reaffirm the loan, it got discharged. You are not personally liable for the loan any more. As you did not reaffirm the debts, though you pay the lender, it will not get reported in your credit report. You can walkaway from the property but this will lead to a foreclosure. The lender will foreclose the property and sell it off in order to recover his loan dues. Though the foreclosure will be mentioned as a negative item on your credit report, the lender will not be able to come after you for the deficient balance.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you filed Chapter 7 and did not reaffirm the loan, it got discharged. You are not personally liable for the loan any more. As you did not reaffirm the debts, though you pay the lender, it will not get reported in your credit report. You can walkaway from the property but this will lead to a foreclosure. The lender will foreclose the property and sell it off in order to recover his loan dues. Though the foreclosure will be mentioned as a negative item on your credit report, the lender will not be able to come after you for the deficient balance.
Feel free to ask if you've further queries.
Sussane
Hi Sussane!
Thanks so much. I appreciate you help.
Do you think we would be responsible for the $19,000? They added the $19,000 to the loan after the discharge.
Thanks again,
Tracey
Thanks so much. I appreciate you help.
Do you think we would be responsible for the $19,000? They added the $19,000 to the loan after the discharge.
Thanks again,
Tracey
I don't think you would be responsible for the extra added amount. As Sussane has stated after the foreclosure sale, you won't be liable for the deficient balance amount.
Thanks very much!