Mortgage Settlement?

[n152sm]

I am in the same position - My home is not worth the first mortgage so every dollar of the HELOC will be totally over our appraised value. I have filed chapter 7, I plan on keeping the house. I know that my personal "responsibility" for the HELOC is discharged but if I don't want the HELOC to force foreclosure of the property I must keep paying. Is there any way (ie ch7 then ch13 or "ch20") to remove the lein of the HELOC? Or is there any way that the bank could "settle" for some upfront payment to remove the lein and close the account?

[n152sm]

Mortgage Settlement?

Have you heard of any banks "willing" to negotiate some settlement to close the account, create the loss on the books, release the lein and put it behind them?

I have a $100K HELOC and a $625K first, my home is appraising at about $600K Right now, so if they know that with a short-sale they will be getting nothing...maybe there are ways to get them something and help you feel good about the situation? I am interested in this option if anyone has experience.

Otherwise - I am looking into CH7 followed by a CH13 (or CH20), so that I can get the lein removed.

[lrprn]

I moved your posts asking the same questions here from the very old 2007 and 2008 threads you posted them to originally. It's against our forum rules to resurrect old threads because the information in them can be out of date.

In the future please start a new thread of your own rather than adding your question to a thread that's been inactive for more than a few months - thanks!

[OhioFiler]

I've never heard of a Chapter 20 bankruptcy.

[lrprn]

I've never heard of a Chapter 20 bankruptcy.

That's because the changes in the 2005 law tried to make filing Ch 13 first to save assets, dismissing the 13 once arrears are caught up through the plan, then voluntarily dismissing the 13 and filing Ch 7 to get rid of all the unsecured debt much harder to do.

It's the Ch 13 + Ch 7 that gave "Ch 20" its name. It's not an official bk chapter. Many local bk courts will not allow a "Ch 20" to be deliberately filed the way they were before Oct 2005.

[debt09]

Yes, is it possible to get the helocs to settle in a chp7 to avoid doing a chp13? Does anybody think this is possible? That would be great, thanks.

[jessegirl]

Yes, is it possible to get the helocs to settle in a chp7 to avoid doing a chp13? Does anybody think this is possible? That would be great, thanks.

I know that a 2nd mortgage that is discharged in a chapter 7 now has a lien on the house. You can file a chapter 13 to strip that lien. Meaning, once the 7 is discharged you no longer have to pay the 2nd mortgage, but then the lien stays on the property. The only way to get rid of the lien is to go into a 13 and strip it off immed. after your chapter 7 discharges.

[debt09]

Ultimately, I would like to do this, but my secured debts are around 1.5 mil so after a chp7 would I still qualify for a chp13? This is including (2) properties with 1st mortgages and helocs on both properties. I want to keep both properties, so I don't know if this would still work? Thanks.

[jessegirl]

Ultimately, I would like to do this, but my secured debts are around 1.5 mil so after a chp7 would I still qualify for a chp13? This is including (2) properties with 1st mortgages and helocs on both properties. I want to keep both properties, so I don't know if this would still work? Thanks.

Not sure. I know its going to work for me. BUT i have about 190K debt and only 1 house which i am keeping, just looking to strip the lien in the 13. Ask your attorney if that would work for you.