House Question

[lockedout]

I am currently converting from a 13 to a 7. We are a month behind on are mortgage and called the bank to find out if something could be worked out. They said are type of mortgage is not eligable for any modifications, 30 year fixed and paying pmi. Asked weather paying the mortgage current before filing, they pretty much said didn't matter, they would still try to take house. Is this common, or is something there doing because the loan is insured. I can waive my vacation and get it caught up, but not really willing to throw money away if they are going to try and take it anyway. I'm posting this because it doesn't sound like anything i have read here in post before.

[justbroke]

I am currently converting from a 13 to a 7. We are a month behind on are mortgage and called the bank to find out if something could be worked out. They said are type of mortgage is not eligable for any modifications, 30 year fixed and paying pmi.

You need to get current. A mortgage company does not have to modify any mortgage. They usually do on the risky mortgages, like ones without PMI, mortgages that are ARMs and adjusted or are about to adjust, and clients who are already seriously past due.

Asked weather paying the mortgage current before filing, they pretty much said didn't matter, they would still try to take house.

If you're current... they can't even try. You have to actually be in default before a mortgage company can foreclose on your property. Even then, there's a cure period (after you get a Notice of Default), where you can still bring it current. I think the person you were talking to knows... little about foreclosure and the process.

Is this common, or is something there doing because the loan is insured. I can waive my vacation and get it caught up, but not really willing to throw money away if they are going to try and take it anyway. I'm posting this because it doesn't sound like anything i have read here in post before.

When the loan is insured with PMI, the lender is in excellent position and has the upper hands by ALL means of the phrase.

[lockedout]

Thanks for the info, worried they will force me to offically reaffirm, rather then a pay through.

[justbroke]

Thanks for the info, worried they will force me to offically reaffirm, rather then a pay through.

Well, this depends on which District and which U.S. Circuit Court of Appeals you are in. In many Districts, ride throughs on mortgages, are no longer allowed due to the seemingly plain language in the new Bankruptcy Code (BAPCPA of 2005).

Much of it deals with underlying State non-bankruptcy laws as well. For example, is the filing of Bankruptcy a breach of the contract (terms of the Note and Mortgage)? If so, then can they sue you for foreclosure even if you're current?

You need to consult a local attorney who understands your local District and Circuit Court. This is the first you post about doing a ride-through. You definitely need to speak with an attorney on whether it's allowed!

[lockedout]

Well, this depends on which District and which U.S. Circuit Court of Appeals you are in. In many Districts, ride throughs on mortgages, are no longer allowed due to the seemingly plain language in the new Bankruptcy Code (BAPCPA of 2005).

Much of it deals with underlying State non-bankruptcy laws as well. For example, is the filing of Bankruptcy a breach of the contract (terms of the Note and Mortgage)? If so, then can they sue you for foreclosure even if you're current?

You need to consult a local attorney who understands your local District and Circuit Court. This is the first you post about doing a ride-through. You definitely need to speak with an attorney on whether it's allowed!

The more information I get the more I want to walk away. Are attorney said we shouldn't have any problems with the conversion, and I would just like this over with. There are a lot of homes around here availible on land contract, so maybe it's better to walk.

[justbroke]

The more information I get the more I want to walk away. Are attorney said we shouldn't have any problems with the conversion, and I would just like this over with. There are a lot of homes around here availible on land contract, so maybe it's better to walk.

If you're ready to walk, then you shouldn't be worried at all. A few people come on the board and want to save their home by all means necessary. You are more prepared than most.

See what happens with attempting the ride-through. I'm pretty sure that the Bank will probably file for relief from the automatic stay, but they may do nothing after that... if you're all caught up. At least, you're ready to give it up, if necessary!

[lockedout]

If you're ready to walk, then you shouldn't be worried at all. A few people come on the board and want to save their home by all means necessary. You are more prepared than most.

See what happens with attempting the ride-through. I'm pretty sure that the Bank will probably file for relief from the automatic stay, but they may do nothing after that... if you're all caught up. At least, you're ready to give it up, if necessary!

I do have a strong attachment, but I have to be realistic. I bought my lot about two years before we built, went custom built with everything we wanted in a home, but a fresh start should be a fresh start, and being burdened with a large mortgage payment, and a huge problem if something happens just isn't worth it.