Posted on: 12th Aug, 2009 09:19 pm
I filed a Chpt 7 last year in which I never reaffirmed or signed a reaffirmation to my mortgage. However, I have since been making the mortgage payments--although it has been a huge struggle to do so. I recently looked into selling my house and as a result found out that the value has dropped at least $30k, yet I still have a huge mortgage payment that I can't keep up with much longer. I looked into refinancing but they turned me down due to my bankruptcy. So, as a result, I notified the mortgage company that I'd like to file a deed in lieu. My question is, do I have to be behind in mortgage payments in order to do this? Or does my bankruptcy allow this?
hi guest,
a reaffirmation is not required as long as you keep making the payments. if you are struggling to make payments, you can definitely request your lender to do a deed in lieu of foreclosure. a refinance is not an option due to the low value of the property and your bankruptcy filing. lenders do not generally want to do a deed in lieu unless you are behind on the mortgage. however, if you write them a letter explaining your hardship, they may agree to do the deed in lieu, even though you are current on the loan.
a reaffirmation is not required as long as you keep making the payments. if you are struggling to make payments, you can definitely request your lender to do a deed in lieu of foreclosure. a refinance is not an option due to the low value of the property and your bankruptcy filing. lenders do not generally want to do a deed in lieu unless you are behind on the mortgage. however, if you write them a letter explaining your hardship, they may agree to do the deed in lieu, even though you are current on the loan.
i agree with u jenkin7.
thanks!!