Referred to lender's attorny for Foreclosure Action

[myhearts07]

Hey all, Hearts here. Got a letter from the lender today stating that if I wish to cure the default to please contact their attorney because they will possibly foreclose on our home. They also sent another form to fill out concerning our finances and a hardship letter. Our circumstances have changed as my income has increased with new clients coming on board, but DH is still going to file chapter 7 on the unsecured debt. We are not putting the house in the BK. Should we even fill out the financial statement, and I won't be including my daughter's income because she is moving out. They have said to contact the loss mitigation department again, should I bother? I am sure that I am going to get the same person that we tried to work with the last time and she didn't budge.

Your advice welcomed.

Thanks
Hearts

[StartingOver08]

Well, as you know all the debt goes into the CH 7. You have to be current on the house to file Ch 7. If you are going to file a Ch 13 - you can catch up the arreage in your house payments in the Ch 13 plan.

It sounds like you are 90 days past due or more on your house. Is that so?

Are you giving the house back in the Ch 7? If you are, don't provide financials to the bank. If you husband is filing soon, don't provide financials to the bank.

[myhearts07]

We are not putting the house in the bankruptcy and yes we are giving it back. We have not made a pymt since Sept. 2008. So is this the dreaded foreclosure action that we all have been talking about? How long does that take? I live in IL> I thought it was 12 months from NOD but not sure. I guess we should ask attorney. I thought that if we sent in the financials that maybe they would really work with us on a loan mod that we could handle and then we could stay in our home.

Thanks
HEarts

[StartingOver08]

We are not putting the house in the bankruptcy and yes we are giving it back. We have not made a pymt since Sept. 2008. So is this the dreaded foreclosure action that we all have been talking about? How long does that take? I live in IL> I thought it was 12 months from NOD but not sure. I guess we should ask attorney. I thought that if we sent in the financials that maybe they would really work with us on a loan mod that we could handle and then we could stay in our home.

Thanks
HEarts

You must list the house in the bankruptcy - ALL debts are required to be listed. If you are giving the house back, you just select the 'surrender' notation on the Notice of Intentions in your petition. Your attorney will do that with you.

It does take a while to foreclose - 8 to 12 months is not unusual.

If you want to try to do a loan modification, then by all means now is the time to do it. However, many people are waiting to see if the new law will allow bankruptcy judges to modify the loans on primary residences.

The announcement is expected tomorrow (maybe).

[keepmine]

As STartingover says, you will be in violation of the bk code if you don't list the lender as a creditor.
If you're giving up the house, why wouldn't you want to list it? You sure don't want to get stuck with a deficiency balance.

[myhearts07]

Didn't know that. Thanks we will notate that and I will make sure that hubby does it because he was lost when he went last week without me... I hope that works out tomorrow about the judge's and giving them more power, it sure would help.

Hearts