Posted on: 04th Apr, 2011 03:51 am
Hi
We filed bankruptcy in 2006. Our mortgage was not reaffirmed however we still live in the home and are current on payments. These payments are not being reported to credit bureaus - it does not show 'foreclosure', rather our credit reports look as if the home was 'written off' in the bankruptcy. We are wondering if it's possible to get a new mortgage on a different home and simply walk away from this one. What do we tell the new lender regarding our current home? It will not sell anytime soon and we are very upside down. Since we are not legally liable for the home anymore do we tell a new lender we intend to 'walk away' so it is not a part of our debt/income ratio, will admitting this to a new lender make us look unfavorable? I hope that made sense...
We filed bankruptcy in 2006. Our mortgage was not reaffirmed however we still live in the home and are current on payments. These payments are not being reported to credit bureaus - it does not show 'foreclosure', rather our credit reports look as if the home was 'written off' in the bankruptcy. We are wondering if it's possible to get a new mortgage on a different home and simply walk away from this one. What do we tell the new lender regarding our current home? It will not sell anytime soon and we are very upside down. Since we are not legally liable for the home anymore do we tell a new lender we intend to 'walk away' so it is not a part of our debt/income ratio, will admitting this to a new lender make us look unfavorable? I hope that made sense...
Our hope was to keep up our current mortgage payments until securing a new one on a smaller home (resale or foreclosure) in case it fell thru we weren't putting ourselves in a 'homeless' position by upsetting the current lien holder. But... in applying for a new mortgage, even though now it shows 'written off' in bankruptcy' for our current mortgage on credit report the new lender will want to know where we've been living, correct? Will they view it in an unfavorable light if we say we are walking away now rather than in 2006 when the bankruptcy was filed? Can we even omit that we've still been making the payments to original lender? This house is in a very rural area, large and even though it's a 2001, it has lost so much value because of the market crash it will not sell, the area is economically depressed to even be kind, almost a ghost town to be accurate. Many houses are abandoned and local stores are closed. We really have no choice but to walk away... we just don't know how to best secure a new mortgage in the process.... you're saying above the only way to get a new mortgage is to sell, correct?
Hi Guest,
If you have been making payments to the original lender, you don't need to omit it. You can inform the lender about the fact that you were staying in the property even after the bankruptcy filing. However, you should note that if you walkaway from the property, the lender will foreclose it in order to recover the dues.
If you have been making payments to the original lender, you don't need to omit it. You can inform the lender about the fact that you were staying in the property even after the bankruptcy filing. However, you should note that if you walkaway from the property, the lender will foreclose it in order to recover the dues.