Posted on: 20th Feb, 2009 02:09 am
Situation and Question:
Home purchase in 7/05 ($116K mortgage) eventually ended up in hands of WF.
1. Employment situations forced a few late payments
2. Situations turn finances dire
3. Best situation / decision was to file Chapter 7; discharged in Jul 2008
(We DID NOT sign a reaffirmation; in essence, should financial situation worsen for any reason, we could walk away from home (if unable to sell), and not be responsible for the balance). Hoping this will never happen though (employment is improved and cash in-flow is better)
4. We are 'under water' with current WF mortgage / terms; 5.5% with balance of $107K and payments of $880/mo
5. County assessed property value has decreased $4K overall since purchase and $10.7K just from summer '07 to winter '08
With the above situation, should we even consider trying to approach WF and ask to try to refi the home to hopefully attain lower monthly payments, given that the gov't is supposedly assisting the lenders / buyers to modify? (This would put us back into a financial commitment)
Or, should we just leave it alone, being that, if for unforeseen future circumstances would force dire circumstances and possible foreclosure, we can just walk away (if unable to sell), without any financial responsibility?
What do any of you experts / mortgage brokers / sellers / buyers think?
Home purchase in 7/05 ($116K mortgage) eventually ended up in hands of WF.
1. Employment situations forced a few late payments
2. Situations turn finances dire
3. Best situation / decision was to file Chapter 7; discharged in Jul 2008
(We DID NOT sign a reaffirmation; in essence, should financial situation worsen for any reason, we could walk away from home (if unable to sell), and not be responsible for the balance). Hoping this will never happen though (employment is improved and cash in-flow is better)
4. We are 'under water' with current WF mortgage / terms; 5.5% with balance of $107K and payments of $880/mo
5. County assessed property value has decreased $4K overall since purchase and $10.7K just from summer '07 to winter '08
With the above situation, should we even consider trying to approach WF and ask to try to refi the home to hopefully attain lower monthly payments, given that the gov't is supposedly assisting the lenders / buyers to modify? (This would put us back into a financial commitment)
Or, should we just leave it alone, being that, if for unforeseen future circumstances would force dire circumstances and possible foreclosure, we can just walk away (if unable to sell), without any financial responsibility?
What do any of you experts / mortgage brokers / sellers / buyers think?
hi boblpn,
if you refinance the property, you will have to make the mortgage payments regularly. if you can't do so, the lender can foreclose the property which will again badly affect your credit score. moreover you should also decide whether you want to stay in the property for a longer period of time or not. if you don't want to stay in the property, then it doesn't make sense to refinance it.
thanks.
if you refinance the property, you will have to make the mortgage payments regularly. if you can't do so, the lender can foreclose the property which will again badly affect your credit score. moreover you should also decide whether you want to stay in the property for a longer period of time or not. if you don't want to stay in the property, then it doesn't make sense to refinance it.
thanks.
Are you saying that if I don't refinance, that I don't have to make regularly scheduled payments? I do not think that is correct. They can foreclose either way; whether I refi or not.
I still have been late since the Ch 7, and WF sends notices regarding late payments and balances. I believe that they can foreclose on the property whether or not I have an actual mortage if I do not make my payments for a few months.
Now, it is more like we are tenants renting the property, instead of homebuyers. Because our statements have statements to the effect of their knowledge of our bankruptcy, and state "For Informational Purposes Only"
I haven't checked my credit report recently, but I've heard that post-filing, some / most mortgage holders don't regularly, if at all, report timely payments.
I still have been late since the Ch 7, and WF sends notices regarding late payments and balances. I believe that they can foreclose on the property whether or not I have an actual mortage if I do not make my payments for a few months.
Now, it is more like we are tenants renting the property, instead of homebuyers. Because our statements have statements to the effect of their knowledge of our bankruptcy, and state "For Informational Purposes Only"
I haven't checked my credit report recently, but I've heard that post-filing, some / most mortgage holders don't regularly, if at all, report timely payments.
Hi boblpn,
As you have mentioned that you haven't reaffirmed your mortgage after you were discharged of Chapter 7, you are not personally liable to pay the dues. But if you refinance the mortgage, then you will have to make the payments regularly otherwise the lender may foreclose the property.
Thanks
As you have mentioned that you haven't reaffirmed your mortgage after you were discharged of Chapter 7, you are not personally liable to pay the dues. But if you refinance the mortgage, then you will have to make the payments regularly otherwise the lender may foreclose the property.
Thanks
Why are you repeating / telling me something I already know? If unable to answer the question, defer to someone else, but, I did not get any receive any valuable information from your post, repeating to me what I already mentioned in my OP.
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Hi boblpn!
Welcome back to forums!
It is not about refinancing the loan. If you have reaffirmed your mortgage after the discharge of Chapter 7, then you are liable to pay the mortgage. If you don't then the lender may even foreclose the property.
Sussane
Welcome back to forums!
It is not about refinancing the loan. If you have reaffirmed your mortgage after the discharge of Chapter 7, then you are liable to pay the mortgage. If you don't then the lender may even foreclose the property.
Sussane