Posted on: 16th Dec, 2009 10:04 am
We have a 5 yr arm set to adjust in Nov 2011. Our 1st is 231k @6.5%, the 2nd is 45k @3% (int only HELOC & its maxed). My income is down 80% from last year and things are extremely hard! I asked for a loan mod w/Wells Fargo, our lender, in Oct, and haven't heard back from them. It looks like we will have to claim a chapter 7 BK, but do not want to put the house or cars in it. I called them today to say that I can not make a full payment...and we need this modification. They said to redo our financials and hardship letter and they would notated my file. Does it make any difference at all, if I don't pay the mortg for 2-3 mos while I go thru the BK and get up to speed in my new career? My credit is getting trashed now as I stopped paying my creditiors on Oct. Total unsecured debt is 140k. I need advice and need it fast!
Txs,
Txs,
Hi CJP,
It would have been a better option if you had contacted your lender immediately after you applied for a loan modification and asked them to speed up the process. As the lender has asked to refile all the required documents, I think you should give it a try.
As far as Chapter 7 is concerned, you will have to list all your assets including your house and your car. Depending upon your debts, the trustee will let you know whether or not he would sell them off to pay off the creditors. In case of the house and the car, if you reaffirm the debts, you will be able to save the property but you will have to make regular payments.
It would have been a better option if you had contacted your lender immediately after you applied for a loan modification and asked them to speed up the process. As the lender has asked to refile all the required documents, I think you should give it a try.
As far as Chapter 7 is concerned, you will have to list all your assets including your house and your car. Depending upon your debts, the trustee will let you know whether or not he would sell them off to pay off the creditors. In case of the house and the car, if you reaffirm the debts, you will be able to save the property but you will have to make regular payments.
Our home is worth 225k and we own 276k, no equity, if the bank wants it then so be it...if we wrap the house up in the bk, how long typically could I stay in the home, without making payments b4 we are foreclose on...we are in MD? Any help wpuld be greatly appreciated. Txs.
Hi CJP,
If you do not reaffirm the debts while you are in bankruptcy, you can surrender the property to your lender after getting a discharge. Once you surrender the property to your lender, you can vacate it. The lender will then foreclose it and recover his dues.
Thanks
If you do not reaffirm the debts while you are in bankruptcy, you can surrender the property to your lender after getting a discharge. Once you surrender the property to your lender, you can vacate it. The lender will then foreclose it and recover his dues.
Thanks