Co-signer filed for BK, Mortgage Modification?

[MauryBallste]

Hi,

I purchased my home in 2006 and have a balance of about $300k. I had 0 money down so I took a 2nd mortgage at the same time as my 20% down payment. 1st Mortgage is through Freedom with a fixed 30 year 7% rate and 2nd mortgage through GMAC with a 9.25% rate and a balloon payment after 15 or 25 years of $45,000(not sure on that figure)

My mortgage payment is currently about $2800 a month w/ insurance & taxes.

I have a co-signer and recently, she filed for Chapter 7 and is about to be discharged. Her lawyer recommended that she not sign the mortgage reaffirmations so that should we foreclose, the banks cannot come after her.

Now, being that she no longer has personal liability, she tells me that she wants out and she wants to start fresh because the house value is about $100k less than the principal.

I make about $65k a year. Do you think it's possible that I keep it but with a mortgage modification? Should I get a mortgage modification lawyer? Am I even eligible? Any insight in this matter would be greatly appreciated!

I am also a single father with a 13 year old son.

The house is a 3 Bedroom, 2 Bathroom one family.

Thank you,
Maury

[MauryBallste]

I just want to add if it helps. she is a co-signer/co-owner. she pays half of the expenses.

She's the only one who filed for chapter 7 bankruptcy, not me.

[BCA2009]

If she didn't re-affirm, she has no more obligations for the debt. All she needs to do is walk away. You would then become responsible for the entire payment. There is nothing else she has to do, if she "wants out".

I can't give any advise regarding the Loan Mod, but at 2800 per month thats more that 50% of your gross. Sounds like it would take a really good modification to be affordable on your salary.

Good Luck!

[MauryBallste]

Thanks BCA

That's what i'm worried about. I know that when she walks away, I am stuck with the entire payment, that's what's bothering me most.

I'm trying to find a solution on here first because I don't want to go to a specialist who is trying to sell their product/service instead of looking out for my best interest.

I really don't want to lose my house as with everyone else going through this. I feel like if I foreclose, I will never own a house again.


Thanks again for your reply!
Maury