First Time BK Forum User

[Dr.Know]

Just found this board today, wish I had found it months ago. I been lurking around reading, reading, reading and now some ?'s.
I filed CH7 03/09/08. Had my 341 on 04/09/08. The only thing I'm keeping is my house. During my 341 I had the "Special Visitor" a UST. Everything was going smooth until the UST wanted to ask questions. I think she had a problem with the amount stated for my mortgage payment. She asked what is my monthly payment was? I replied and she said that I needed to change the amount on my means test to reflect the payment. I'm in one of those dreaded Neg Am option ARM loans an since I've been up to my eyeballs in debt, I've only been able to make the minimum payment. The principle and interest payment is another $1000 per month more. I was hoping that once my case was discharged I would start making this higher payment. If the UST forces me to a CH13 I don't think I'll be able to make the payment possibly forcing my to give up the house. Does anyone have any experience with type or situation. I'm a little concerned as I've tried to get information about this from my attorney but he has been unable to get me any info.

[HHM]

1. Do you have any equity in your home.

I hate to say it, but if the answer is NO, then you should consider dumping the house. If the home has no equity, you are in a crappy mortgage that you won't be able to refinance out of for probably 2 years (because of the BK). You should consider getting a truly fresh start and surrender the home in BK. No point in staying in a bad loan after BK that is costing you money (i.e. you are not paying any principle, and the real estate market continues to decline...there was a post a while back, not sure where it is at the moment where we ran some numbers, and demonstrated that you are financially better off surrendering a bad loan house, waiting 2 years and buying again, then plowing money to try to dig out of negative equity in your current home).

[Dr.Know]

Unfortunately I'm in California and home prices are in a tailspin and I can't see the bottom.
Also I was interested is registering on Pacer but was wondering if I registered with a debit card can I get instant access or do I have to wait for authorization via regular mail. I'm curious what the UST has filed in my case.

[KKAB]

Dr. Know, I registered for PACER using my debit card, and I did get instant accesss.

[HHM]

Yeah, you may want to rethink trying to keep the house and surrender the house in you BK.

All you need to do is stop making your mortgage payments (and since you already filed, I would go to the trouble of amending your statement of intention to indicate that you wish to surrender the home).

[rfassett]

Dr.Know, I don't think you understood HHM's comment. If the housing market in your area is in the toilet and you are in an unmanageable mortgage, bankruptcy permits you to make that problem belong to someone else. You do not need to worry about being able to sell it. If finding affordable housing is your concern, if the housing market is that depressed then finding an affordable rental should not be difficult.

[Dr.Know]

I do understand the housing market is crappy right now but option to dump the house right now due having family members that rely on the roof over them seems to be a last resort. I would hate to displace them if didn't have to. My first option would be to get my CH7 discharge and then work with the lender to get a loan modification. I guess my question regarding the UST is, would changing the information regarding the payment I'm making now on the means test change the presumption of abuse status?

[HHM]

You are treading into dangerous waters.

Look at it this way...lets say you get your BK 7 and the Bank wont modify the loan (and frankly, the odds of getting a loan mod are slim)...at a minimum you would have to reaffirm the mortgage...at which point, you are now personally liable for the mortgage. Odds are, a year from now, you will be facing foreclosure and then will have no choice, and you won't be able to file BK again.

DO NOT BASE YOUR FINANCIAL FUTURE ON UNCERTAINTIES, if the only way you can manage this mortgage after BK is for the loan to get modified, you are screwed. (to put it bluntly). You cannot base your financial future on things outside your control and various "what ifs". I know it is an emotional situation, but you MUST look at things objectively.

Yes, it is a difficult time, but you must try to set the emotional aspect aside and really assess your situation.

I hope some other people chime in, we have had numerous members in your EXACT same situation, and when all was said and done, they got through it, their families got through it (and yes, they surrendered their home).

[keepmine]

The best way to help others is first of all, be able to help yourself.
You don't want to be saddled with a loan you can't afford and a year from now be in foreclosure and on the hook for a deficiency balance.
If familt members are going to stay with you, they'll just have to endure some upheveal. Get yourself in a realistic housing situation that is affordable and don't jeopardize your fresh start.