Posted on: 29th Sep, 2009 05:22 pm
we were discharged from bankruptcy in feb of this year, chapter 7. we never signed a reaffermation agreement on are first or second mortgage but kept paying them so we could keep are home. at the end of march my husband lost his job and we ended up missing 4 house payments. he has a job now for almost a month but since we are in forclosuer we either have to wait and see if we qualify for a modification or pay up what we owe before the sheriff sale, which is oct 15th. if the midigation department doesn't get things together before the sale then we will loose the home. what will happen then? will we owe the diffrence or will it be part of the bankruptcy since we never did the reaffermation agreement. would we be able to buy another home? if we could go buy one of these cheap homes in are area that would be fantastic since are home is worth half what we owe. this whole thing has been very stressfull and we have 3 young kids, 2 in elementary school. any advise would be great. we live in michigan.
Have you called yoru lender and ask for some payment plan or loan modification plan
That isfirst thign you need to do. Show that you have the incoem to make payments
That isfirst thign you need to do. Show that you have the incoem to make payments
I have all ready sent in all the paper work. I called them the day my husband got a job. We can't do a repayment plan so we have to wait for the negotiation team to do something. I call every week but there is only a couple weeks left before the sale now. There is nothing more I can do its in there hands now.
Hi jd,
"....Will we owe the difference or will it be part of the bankruptcy since we never did the reaffirmation agreement. Would we be able to buy another home?..."
You will not be liable to pay off the deficiency. The debt has been discharged through bankruptcy and you no longer owe it. However, in order to keep the house you had to continue the payments. Now, that the house is going to be foreclosed, you will be left with no responsibility to make any payments towards the mortgage. You will not owe the amount of the deficiency from the sheriff's sale.
As far as buying a new house is concerned, you can definitely go for it, provided your name was not included in bankruptcy and you qualify for a loan. Who filed the bankruptcy? If he was the one who filed the bankruptcy, he will have to wait for at least 2 years to qualify for an FHA loan an 3-4 years for conventional loans. If your name was not included in bankruptcy and you have good credit and income, you can apply for a new loan and buy a home in your name.
"....Will we owe the difference or will it be part of the bankruptcy since we never did the reaffirmation agreement. Would we be able to buy another home?..."
You will not be liable to pay off the deficiency. The debt has been discharged through bankruptcy and you no longer owe it. However, in order to keep the house you had to continue the payments. Now, that the house is going to be foreclosed, you will be left with no responsibility to make any payments towards the mortgage. You will not owe the amount of the deficiency from the sheriff's sale.
As far as buying a new house is concerned, you can definitely go for it, provided your name was not included in bankruptcy and you qualify for a loan. Who filed the bankruptcy? If he was the one who filed the bankruptcy, he will have to wait for at least 2 years to qualify for an FHA loan an 3-4 years for conventional loans. If your name was not included in bankruptcy and you have good credit and income, you can apply for a new loan and buy a home in your name.