I filed for Chapter 7 and had it discharged in April of 2005. I was lucky as I was able to get a bankruptcy prior to the new law coming into effect. My question deals specifically with my financial obligations around the 2 mortgages I had to purchase my home. I had a 1st mortgage that paid for 80% of my house and a second that paid for 20%, so I essentially purchased with no money down in 2003. I then listed both mortgages on my BK filing in 2004, and they were included in the discharge that occurred in April of 2005. I then had a lawyer, validate that neither mortgage has been reaffirmed since my bankruptcy discharge.
Now, I am trying to sell that home. With the horrible housing market I'm looking at selling the home for a loss. Where my question comes in is, I think selling the home at a loss is the same as a short sale, right? I have spoken with both mortgage companies, and the 80% company says they will be made whole based on the sale price. They also say they are ultimately the ones that decide if a short sale is going to be accepted or not. The communication they sent to me said, sell and we'll support the short sale 100%, the 20% firm will get whatever is left over or $1000, according to the 80% mortgage company the 20% mortgage firm essentially had an unsecured loan and their losses will be covered by PMI. Their advice is to sell the home and not worry about the 20% mortgage company.
The 20% mortgage company has told me they have to approve of a short sale prior to it's execution to ensure they are made whole or agree with the sale price. They also say if they refuse the short sale I can't sell the home. Their essentially trying to put themselves in the other firms shoes.
What do I do? both mortgages were discharged in BK, both show as 0$ outstanding balance on my CR and pay on time never late, and I continue to pay the mortgages on time and both are current. What is the imapct if I sell and don't include the 20% mortgage company in the short sale discussions? Should I even care, technically I don't owe them a dime...I think.
Thanks, sorry for the long winded question.
Now, I am trying to sell that home. With the horrible housing market I'm looking at selling the home for a loss. Where my question comes in is, I think selling the home at a loss is the same as a short sale, right? I have spoken with both mortgage companies, and the 80% company says they will be made whole based on the sale price. They also say they are ultimately the ones that decide if a short sale is going to be accepted or not. The communication they sent to me said, sell and we'll support the short sale 100%, the 20% firm will get whatever is left over or $1000, according to the 80% mortgage company the 20% mortgage firm essentially had an unsecured loan and their losses will be covered by PMI. Their advice is to sell the home and not worry about the 20% mortgage company.
The 20% mortgage company has told me they have to approve of a short sale prior to it's execution to ensure they are made whole or agree with the sale price. They also say if they refuse the short sale I can't sell the home. Their essentially trying to put themselves in the other firms shoes.
What do I do? both mortgages were discharged in BK, both show as 0$ outstanding balance on my CR and pay on time never late, and I continue to pay the mortgages on time and both are current. What is the imapct if I sell and don't include the 20% mortgage company in the short sale discussions? Should I even care, technically I don't owe them a dime...I think.
Thanks, sorry for the long winded question.
Bankruptcy Wizard
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