anyone keep their house after bk7

[sadandconfus]

did anyone keep there house after filing a chapter 7?

did you try to do a loan modification?

I am months behind on the payments, will they want me to get current?

Did they require to reaffirm?

is it possible to do a chapter 13 after a 7 and how long do you have to wait?

[laurannm]

We did not reaffirm our house but are continuing to make payments (7 months post discharge now, remain current). Citi mortgage is allegedly supposed to get back to me in about a week or so with possible loan mod options. According to them, having filed a Ch 7 and not reaffirming is not an issue with regards to loan mods.

[Beedlebrow]

We did not reaffirm our house but are continuing to make payments (7 months post discharge now, remain current). Citi mortgage is allegedly supposed to get back to me in about a week or so with possible loan mod options. According to them, having filed a Ch 7 and not reaffirming is not an issue with regards to loan mods.

Not sure if this applies to houses, but thought I'd post it anuhow.
My attorney suggested that we reaffirm our carloans.
He said we didn't have to for the bankruptcy, we could just continue to make our payments.
But he did say that the loan company could always repossess our vehicles, even if we are current, if we don't do a reaffirm.
He said it was unlikely they would do this if we were current, but wanted us to be aware of it.
I was shocked, I had no idea that this was even a remote possiblity, that they could repossess even if you were not behind.

[sadandconfus]

laurannm
were you behind on your payments when you filed? if so how far? how many loans do you have? one last question are you underwater and by how much?

[ShouldWeFile]

I would be willing to bet a majority of homeowners keep their homes in a chapter 7 bankruptcy filing. The filer would continue to make payments on their home (they may or may not 're-affirm' on the mortgage). As you noted you would have to be current on the mortgage to re-affirm.

I would speculate that most lenders would not continue with a pending modification or open a new modification file immediately following a BK filing, however that is up to the individual lending institution.

To my knowledge, you will be required to be current if you file a chapter 7 and wish to keep the home. One of the main benefits of chapter 13 for those who are significantly in arrears on their mortgage (or other secured debt) is the ability to include the entire amount of the arrears in the chapter 13 plan.

I was always under the impression you must reaffirm to keep any secured property. Many here have reported not reaffirming and simply making payments on secured debt. Reaffirming or not reaffirming may have pros and cons, and may or may not be required by your local district and/or lending institution.

You can file a chapter 13, and convert it to a 7 at a later time. The reason to do the 13 is to allow you to get current on your mortgage (via the 13), then you can convert to a 7 after you are 100% current on your mortgage. You must qualify for a ch7 (possibly qualify both at the time of filing the ch13 and the time of converting to a ch7). Secured debt is paid first by your ch13 trustee. It is also paid at 100%, even though your other debt may be at only pennies on the dollar, depending on your budget.

Hope that helps!

[sadandconfus]

is there a time limit you can convert it to a 7? If you finish the 13 can you then file a 7 or do you have to convert while it is in affect?

[ShouldWeFile]

is there a time limit you can convert it to a 7? If you finish the 13 can you then file a 7 or do you have to convert while it is in affect?

If you complete the 13, there would be no need to convert at that point. The main reason to convert is to not have to pay any remaining unsecured creditors through the 13.

Edited to add: legally, you cannot file a ch7 for at least 6 years after the discharge date of a previous ch13. IE, if you are discharged April 8th, 2012, you cannot file a 7 until April 9th, 2018.

[sadandconfus]

The problem is i qualify for a bk7 what I don't think I qualify for the 13. I think my expenses are too much for my income. But that is a good idea to switch to 7 when I'm current. I think i'm behind like 12,000 on the two mortgages. I was currently on a reduced payment plan and fell behind that last month. I just got a notice of intent to default from my second mortgage. I guess I can reduce my monthly expenses. Does it cost more to file for 13? My bk7 is $2300. To reiterate I am underwater but I don't want them to go after my coborrower, plus I put a lot of money into the house already.

[ShouldWeFile]

If keeping the home is not of any importance to you, then the next question is the co-borrower collectible, ie, does she have assest or income that the creditor could go after. IE, significant equity in her home, or significant money in stocks, savings, or garnishable income.

The reason I ask is that filing a 7 or a 13 will affect the coborrower's credit either way. The 13 allows you to keep the home & pay back the arrears over time.

[sadandconfus]

yes my mom who is the coborrower has a paid off home 400k, a vehicle paid off 2004 mercedes and money in savings and social security income 700 monthly. however, she has joint with my dad. what do you think?


also
let me get this correct, under ch 7 you have to be current on your mortgage to reaffirm the house correct?

what if I don't reaffirm and just pay the mortgage will that work or will they continue with the foreclosure process because I'm way behind on the payments?

[ShouldWeFile]

Sounds to me like the lender would DEFINITELY benefit from perusing her even if you had filed ch7 - ch13 makes sense in your case... you had asked about cost - around here they all charge $3500 - but only a portion needs to paid upfront, the rest rolled into the ch13 payments.

Plus if your coborrower is not on the second, you should be able to strip your second mtg as long as the entire amount of the second is unsecured.

[sadandconfus]

I"m not sure if the entire second is unsecure I don't know how to check. I think she is on the second as well. It has her name on the deed of trust. The bad part is I only wanted her on the deed, but they somehow screwed that up and when I checked with the lady doing refinance she told me it was correct.

[ShouldWeFile]

I"m not sure if the entire second is unsecure I don't know how to check.

I would expect my attorney to assist me in documenting this. If the value of your home is (significantly) less than your total balance on the first - then the second would be unsecured. The problem is the value of the home is (at least to some point) subject to opinion...

[laurannm]

laurannm
were you behind on your payments when you filed? if so how far? how many loans do you have? one last question are you underwater and by how much?

No, we were current and remain current on both mortgages. We are very underwater...by about $150k (including about $20k on the first mortgage)

[Lajazz947]

I am with Wachovia, one month behind and not a word about reaffirmation.

My second with Wells has asked but has not pursued yet.

Wachovia said they are working on a modification program but no details yet.