Letting House Go After Filing

[tazzy20176]

Here's my situation: I only pass the means test because of my house payment of $2800. I'm hoping that when I file chap 7, I won't have to reaffirm the mortgage (with Countrywide). I know I have to be current on my mortgage when I file, but what if I'm behind on my mortgage by the time I have my 341 mtg or during my 60 day wait period of the discharge? Any advice?

[BK2008]

Countrywide doesn't do reaffirmations.

And if you're behind by the time your 341 rolls around, the trustee is going to ask you if you are planning on keeping the home, and more than likely what the plans are to get it current.

I fell behind in mine AFTER my 341, after I had stated I was reaffirming, but at the last minute before my discharge, my atty changed the forms to read ' surrendered in BK'.

Now I am almost 4 months past my discharge, and am currently in foreclosure scheduled for sale on Dec 2nd.

[estreeter34]

We were in a similiar situation. With the real estate market going south, we were way upside down on our house and struggling to keep up. After talking with our attorney and laying all the crds on the table we knew we needed the house payment to qualify for Ch. 7, but also that it would be foolish to reaffirm based on the current housing and rental market ( we can rent a similair home in the area for about half our mortgage payment. Anyhow, we stopped paying after filing and our 341 and 2004 meeting went well. Now we are saving for our future and should have plenty of cash for a deposit and 2-4 months rent as needed to keep a landlord confident in our ability to pay. It was not easy to let our new home go, but it will be much better financailly for us and that is why we are here!

[DaisyMae]

I'm letting mine foreclose, then will file.

However- I have Countrywide, now owned by B of A, and B of A may be suspending foreclosures here on Countrywide loans pending legal action, so I MAY even be able to live for free for longer! On another note- I saw today that Spain is halting ALL mortgage payments for TWO YEARS! WOOF. Let's keep our fingers crossed that something wild like that may happen here...?

[nikkidbl]

Hi, sorry to crash your post like this but I just joined this forum and after 5 hours of reading I came upon your post.
The OP said:"I know I have to be current on my mortgage when I file, but what if I'm behind on my mortgage by the time I have my 341 mtg or during my 60 day wait period of the discharge?"
Quick question if one of you doesn't mind answering: If I'm late on my mortgage payments before I file for bk... why is this bad? I can't really afford to pay anyone anymore and am considering filing in the next 6 months, but I didn't know that I had to be current on my mortgage at the time of filing? Thanks in advance, this forum is giving me hope

[nikkidbl]

Please disregard my above question. I figured it out...I guess I need a break to process all the info I got from all this reading...Cheers

[Doghouse]

I certainly hope we don't have to be current in order to file. I stopped paying my mortgage last month and do not plan on making any more payments till I file in 3 months. And I will be using the stopped mortgage payments as part of my qualifying for the means test. I plan on surrendering the house.

I believe you can use the secured loan payments (such as equity loans, heloc etc) as part of your current expenses to pass your means test, but not the unsecured amounts, regardless of when you stopped paying. Hope someone can verify or correct that assumption.

[BROKENN]

You need to be current on the house to keep the house.
Sorry guys

Controversial on the using mtg for means if you let it go............

[TEW]

I was current on my mortgage the day I file key word the day. I did not make a payment after I file. When the trustee asked me if I was going to keep the house I said yes IF I can work something out with them. Turns out there isn’t anything suitable to work out so I am letting it go.

[tazzy20176]

Thanks TEW for the clarification. I will make sure I stay current on my mortgage until I figure out what to do. I'm waiting for Countrywide to offer me a modification when their new program goes into effect in December since my ARM is scheduled to reset soon. If they can't help, then I'll have to walk away. Good thing that Countrywide doesn't do reaffirmations.

[Medora]

OY you guys have me all confused now!
IF you are surrendering the house, and are late on your mortgage payments, my understanding is that you STILL can claim the mortgage pyaments to help yo upass the means test, because the question asks you how much you are contractually obligated to pay.
Right? That's what I understand from the lawyer site BankruptcyNetwork.com...
Not keeping house, late on payments, claiming mortgage amount as monthly expense... yes? no? otherwise??

[endisnear]

yes i'd love some clarification on this as well!! We can not pay the mtg or our cc's this month. however i need some kind of housing exp to pass the means test. if we give the home up in chap 7 and are behind when we file, should we look for something to rent BEFORE filing to apply that housing expense to the means test?

[BROKENN]

I brought the limit for expenses to the schedule for future. Rent in CA max is $1900 and that is what I used regardless when I was actually moving.

You can see yours when completing the means test for your zip:

http://legalconsumer.com/bankruptcy/means-test/index.php

[endisnear]

ok, thanks brokenn. i had used the max allowed for our zip, and even with that we were over our income. and our mtg is well beyond the allowed amount! we can rent for half of our mtg, even less if we moved further out and commuted. just didn't know if they'd make us use 0, since we'd no longer have the home and weren't in a rental contract yet.

[BROKENN]

Yep, us too

Save up for your deposit!