Chapter 7 and Mortgage

[Karceno888]

Hello,

I was wondering if you file chapter 7, how long can you go without paying your mortgage.

I am current on my mortgage, but running low in cash due to a health issue.

Thank you.

-Ceno

[justbroke]

Unfortunately, there is no way to tell how quickly or how severely a mortgage servicer (or lender) will respond to not paying the mortgage. Suffice it to say that being behind in mortgage payments and filing a Chapter 7 will likely put the lender on notice that they must take steps to protect the collateral (the property).

Filing a bankruptcy simply invokes the automatic stay. That stay disappears when the creditor files and receives relief from the automatic stay (RFS), the case is dismissed, or the case is discharged, whichever comes first. You need a plan if you want to keep the home. Unfortunately interest rates are horrible right but you may be able to seek help from your lender/servicer related to a pause in payments. But please know that filing a bankruptcy or asking to abate payments (delay them) signals to the lender that the collateral may be in jeopardy.

I don't have an easy answer. Every "option" -- if you could call them options -- is rife with issues. If you want to keep your home you need to be able to be current at the time of discharge or face foreclosure. From everything that I've learned, the more months that one is behind, the harder it is to make up the payments.

If you are going to file Chapter 7, discharge the debt, keep your home, then you really need to be and remain current. Even if you plan to reaffirm, which is not recommended at all, you need to be and remain current.

Maybe someone else has some ideas.

[Karceno888]

Unfortunately, there is no way to tell how quickly or how severely a mortgage servicer (or lender) will respond to not paying the mortgage. Suffice it to say that being behind in mortgage payments and filing a Chapter 7 will likely put the lender on notice that they must take steps to protect the collateral (the property).

Filing a bankruptcy simply invokes the automatic stay. That stay disappears when the creditor files and receives relief from the automatic stay (RFS), the case is dismissed, or the case is discharged, whichever comes first. You need a plan if you want to keep the home. Unfortunately interest rates are horrible right but you may be able to seek help from your lender/servicer related to a pause in payments. But please know that filing a bankruptcy or asking to abate payments (delay them) signals to the lender that the collateral may be in jeopardy.

I don't have an easy answer. Every "option" -- if you could call them options -- is rife with issues. If you want to keep your home you need to be able to be current at the time of discharge or face foreclosure. From everything that I've learned, the more months that one is behind, the harder it is to make up the payments.

If you are going to file Chapter 7, discharge the debt, keep your home, then you really need to be and remain current. Even if you plan to reaffirm, which is not recommended at all, you need to be and remain current.

Maybe someone else has some ideas.

Thanks for your reply.

I am current, so no worries. I will probably just pay it this month, as it is affordable and my interest rate is 3.25%, not bad.