anyone keep their house after bk7

[StartingOver08]

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...

True. You want to get an appraisal to determine current market value. The appraisal needs to be very close to the filing date to be accurate. The comparable sales need to be within 90 days. Appraisals cost money - to determine where you are, get an accurate CMA - just so you have a ballpark figure if you think you are close on the numbers.


Some trustees try to use tax valuations and automated valuations - don't do that, those values run much higher than actual market value. Naturally it benefits the trustee to show a higher value -

[sadandconfus]

to clarify again.

under a bk7 you don't have to reaffirm, but if you do decide to reaffirm you must be current. if you are not current you can choose to make payments and stay there, but they can take the house back anytime.

or if you are not current you can try to do a bk13.

is this correct?


and according to laurannm her company will do a mod even after a bk7.


and per previous posts, i don't think i can do a lien stripping on the 2nd because they will try to come afer the codebtor for the mortgage.

[StartingOver08]

You must be current on your mortgage at the time of filing a Ch 7 if you want to keep the house (whether you reaffirm or not).

If you are behind, you can 'catch up' your secured payments in a Ch 13.

[lrprn]

... if you are not current you can choose to make payments and stay there, but they can take the house back anytime.

This is not correct for Ch 7. You MUST be current on your mortgage when you file Ch 7 to keep your house. No exceptions.

If you are current on the mortgage when you file Ch 7, then if your remaining mortgage is for significantly more than the house is worth, most lawyers will recommend that you *not* sign a reaffirmation agreement. However, this commits you to NEVER being late on your mortgage payments after your case closes or you open the door to your lender possibly starting foreclosure proceedings. On the other hand, if you don't sign a reaffirmation agreement, then if something major happens to you financially (job loss, divorce, serious medical problems, etc), you can walk away from the house without owing anything. Talk to several experienced bk lawyers in your area (most give free initial consultations) to discuss which makes better sense for you in your financial circumstances in the long run.

or if you are not current you can try to do a bk13.

If your Means Test and Schedules show that you have sufficient disposable income to support a Ch 13 plan (at least approx $165/month), then yes, if it makes financial sense to do so, you can file Ch 13 and make up the mortgage payments you are behind in the Ch 13 plan.

[MichiganMan]

I am confused

I asked my attorney about not reafirming and she said if we file to reafirm and want to keep the house and we are and continue to be current during the bk process, that in West Michigan they will not close your bk until your reafirm hearing and you have done so.

But I am hearing people said they want 2, but then do not. How do you get closed when it is concidered outstanding?

[WC Nurse]

This is not correct for Ch 7. You MUST be current on your mortgage when you file Ch 7 to keep your house. No exceptions.

We are in CA and my attorney knew we weren't current on our mortgage and knew that we want to keep our house. He didn't say that it would be a problem or that we should wait to file until we were current. Now I'm stressing out! We absolutely have to keep our house. I hope you are wrong and that there will be no problems. Our 341 is scheduled for 5/6/09. By that time, we will have paid our April mortgage payment but will be 5 days late on our May mortgage payment. I'm crossing my fingers it all works out. I will be more devastated and depressed than I already am if I lost my house.

[sadandconfus]

wc nurse: i guess you should doublecheck with your attorney about the mortage before you go to the 341 meeting. you might get some surprises. let us know.

[willbfree]

We plan to keep our house and filed Ch 7. We reaffirmed both mortgage payments in the bk petition and are current on both the primary and second mortgage payments. Our atty didn't mention any problems with this issue at any of the meetings.

[sadandconfus]

i wish i would have known before to keep house payment current and just not pay anything else. willbefree do you have a fix or arm loan? mine is adustable and i'm afraid that even if i do a 13 and they don't modify i will be SOL because just the first will be so much i can't afford the chapter 13 payment. I hope maybe the judge can maybe change it to a fix rate? anyone have this happen for them?

[ShouldWeFile]

mine is adustable and i'm afraid that even if i do a 13 and they don't modify i will be SOL because just the first will be so much i can't afford the chapter 13 payment. I hope maybe the judge can maybe change it to a fix rate? anyone have this happen for them?

At this time the federal bankruptcy courts have no ability to modify your first mortgage in any way shape or form... only to eliminate your liabilty from the debt in a chapter 7 (walk away from the home), or to allow you to pay any amount in arrears over the course of a chapter 13 repayment plan...

[willbfree]

sadandconfused we have a fixed rate mortgage.

[chad9162]

This is not correct for Ch 7. You MUST be current on your mortgage when you file Ch 7 to keep your house. No exceptions.

Are we talking about the 1st mortgage only....Is this a Turstee thing? Because my attorney said I could stop paying my 2nd Mortgage before filing bk. Since I'm 120K underwater he said the second loan isn't going to foreclose because they'd have to PAYOFF the 1st loan and end up losing more $$$.

First loan is $314K second is $46K and house is worth $220K...

[sadandconfus]

chad you trying to keep house?

[lrprn]

Are we talking about the 1st mortgage only....

Yes. In your case since your home is worth less than the first mortgage and you intend to strip the second, you must be current on your first mortgage to keep the home if you file Ch 7.

Is this a Turstee thing?

No, it's a bankruptcy law thing There's no legal structure in Ch 7 to pay back late mortgage payments after filing.

[chad9162]

Yes. In your case since your home is worth less than the first mortgage and you intend to strip the second, you must be current on your first mortgage to keep the home if you file Ch 7.

No, it's a bankruptcy law thing There's no legal structure in Ch 7 to pay back late mortgage payments after filing.

Well we're "stripping" after the BK if the creditor will negotiate. Not "striping" like in a 13 as you already know. So as long as I'm current on the 1st I'm okay? That's what my attorney said. He said even if the 2nd doesn't negotiate they'd be in limbo land and waiting.

Curious, why are you paying both mortgages when you're so underwater as well?

And es we're trying to stay but won't break my heart to leave either....