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Will mortgage company send offer?

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    #1

    Will mortgage company send offer?

    My understanding is that since our mortgage went through the Chap 13 that we can default at any time and not be responsible for difference between what we owe and what it can be sold for. Our house is currently underwater by $20K and we probably could do enough to fix that and get it up to what we owe. Our mortgage company has said there are no modifications available for us. Our interest rate is over 8%. Isn't it to their advantage to offer us a lower rate to get us to sign new papers to the BK is no longer in effect on this loan? Has anyone received a refi offer from their current mortgage company?

    We are hoping to move, but we may leave the house, but keep it and/or rent it after the very badly needed repairs are done. My reason for keeping is that it is relatively cheap and if we move it will be closer to town to save gas and time, but housing is more expensive there. If we ever needed a cheaper place we would have it that way.
    Filed Chapter 13 on 3-31-10. 341 completed 5/20/10
    $2900+ a month 0% payback to unsecured creditors
    Discharged 6/30/2015
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    #2
    A home mortgage is not discharged in a Chap 13 bankruptcy unless you surrender the home in the BK. Without a discharge, whether you can be held liable for a deficiency depends on your state's laws. Do an internet search for "[Your State] deficiency judgement" to find information on your state's laws.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment

      #3
      They cannot go after the deficiency in a deed in lieu because it is consider a nonjudicial foreclosure and they can only get the deficiency in a judicial foreclosure in my state. So I guess they can't really go after me no matter what if I ever do deed in lieu. So they will want to keep me at the 8+% interest.
      Filed Chapter 13 on 3-31-10. 341 completed 5/20/10
      $2900+ a month 0% payback to unsecured creditors
      Discharged 6/30/2015

      Comment

        #4
        Keep in mind that the lender does not have to accept a deed in lieu. But, I have read that lenders usually do not opt for judicial foreclosure in states that allow non-judicial foreclosure. I don't remember the source of that information, so don't count on it without independently verifying.
        Last edited by LadyInTheRed; 07-08-2015, 12:41 PM.
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

        Comment

        • frustrated51
          #4.1
          frustrated51 commented
          07-08-2015, 11:35 AM
          Editing a comment
          Yes, thank you. I am not planning on doing deed in lieu, but I would really like a lower interest rate.
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