What do I do with my house?

[Depressed]

I moved from Utah to Southern California last summer due to a job transfer. Did the Chapter 7 back in 2010, discharged at the end of that August. Marked the box reaffirm on the bankruptcy paperwork, but never did any paperwork with the bank (NavyFCU). The mortage is still being reported on my credit reports.

I owe around $270K on a place that might sell for around $250-270K. I tried selling it last summer, that didn't work so I rented it out at the end of the year. It's leased until the end of the year. The problem is that my rental income comes up at least $600-$700 a month short of covering the mortgage/taxes/etc.

Ideally, I'd like to get rid of the house. However, I'm trying to do the right thing and not let it go into foreclosure or do a short sell. Is there any way to refinance this place into a lower interest rate at his point point. I'm at 7.125% fixed and my two years isn't up until the end of August. Will they even do that if I don't live in it, and have no equity?

I'm current on the payments. I was hoping to buy something in CA later this year or next. My credit scores are back around 700 and I haven't taken on any debt at all. 90K+ a year in income. Is the bank going to laugh at me when I tell them I want to buy another house?

[Depressed]

A little update...NAVYFCU basically laughed at buying another house while we still own this one, as well as doing a refi on it. Were current on the payment so they aren't motivated to do anything for us. The renters lost their job, so they're out at the end of the month. House is back up for sale.

[tobee43]

sorry to hear you reaffirmed, since now walking away from it really will not work out well for you.

i hope you can sell it or keep renting it out until enough passes were you can refi. best of luck to you!

[ValleYum]

sorry to hear you reaffirmed, since now walking away from it really will not work out well for you.

i hope you can sell it or keep renting it out until enough passes were you can refi. best of luck to you!

Tobee? Are we sure he reaffirmed? The post read to me like they checked the reaffirm box on the SOI but never did actually reaffirm.

Navy Federal being jerks doesn't surprise me at all given their disdain towards current customers who file(d) for BK.

I truly hope that Depressed did not actually reaffirm (as indicated above in his posts) so he can tell Navy Federal to pound sand. I personally would mail them the keys and tell them to KMA.

Good luck to you, Depressed!

[tobee43]

Did the Chapter 7 back in 2010, discharged at the end of that August. Marked the box reaffirm on the bankruptcy paperwork, but never did any paperwork with the bank (NavyFCU). The mortage is still being reported on my credit reports.

valle, i figured if the box was checked it's still an indication of "intent", signed, sworn and delivered. so, i don't know really about the actual inforcement of it.

[ValleYum]

Not to be argumentative ( who me? LOL), I think the document would have to be filed with the court after the OP signed it and after it was either signed off by his attorney or approved by the judge in order to be considered a reaffirmation. The SOI lists your intentions at the time you file but I don't believe what you list on there is legally binding.

Of course, this is just how I understood it when our attorney explained it at our signing appointment (he went over it in detail with us as it was our intent to reaffirm our vehicles).

[tobee43]

i could agree with that LOL!!!!!!

you know, i really wished even though we surrendered that i had filed some type of motion with the BK court asking them to grant a DIL from the bank. ( i was SO DUMB!)

i also think again, it may and will vary from jurisdiction to jurisdiction maybe it is null and void because nothing was signed.

[DebtEnder]

If your attorney never got paperwork and you and (s)he never singed it, it should be listed as IIB as you did not reaffirm. If you DO end up just letting the house go make SURE they report it IIB effective the day you filed.

Getting a mod on an investment property is not going to happen. Happen so rarely as is and most programs require owner occupant

[Depressed]

When I pull up my credit report it doesn't show IIB. It also wasn't listed as a debt on my bankruptcy paperwork- if that matters.

I think I've made my last payment on this place. Not that I really have the money to make two house payments at the same time. When NAVYFCU starts calling next month I'll go from there.

[DebtEnder]

All debt should have been listed on your paperwork. If it was not then you should double check that. Otherwise your fighting a battle in the wrong order.

[ValleYum]

It also wasn't listed as a debt on my bankruptcy paperwork- if that matters.

Was NFCU not listed on your Schedule D - Creditors Holding Secured Claims or on your B8 - Chapter 7 Individual Debtor's Statement of Intention? How did you check the reaffirm box if it wasn't listed at all?

Did you check on your mailing matrix to see if NFCU in Merrifield, VA was listed on there?

Were you an asset case??

Like DebtEnder just said above, you may have to change your order of what you need to do first.