top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Housing Question..

Collapse
X
Collapse
 
  • Page of 2
  • Filter
  • Time
  • Show
Clear All
new posts
Previous 1 2 template Next
    #1

    Housing Question..

    Hi Everyone
    First posting!

    My husband filed for CH 7 in May. (he filed seperately as the CCs and our house is in his name only).

    We are still in the midst of the ch 7 not discharged yet..BUT our major issue is our house.

    We started the loan mod with Chase back in Feb and then filed Ch 7 in May. (this was prob. not the best idea at the time..)
    So after faxing our paperwork to Chase 12 times in 5 diff departments we still dont have an answer. We are now with the Exec team at Chase (in the BK dept)

    House details:
    Paid 806k
    Broker Price Opionion is 525k
    Owe 698k
    Payment is 3700. We are looking for a loan mod that includes a principal reduction (i know, fat chance) and to get our payment down to 2900-3000 (P,T,I)

    We are totally undecided what to do about reaffirming the mortgage. Husband thinks its stupid to reaffirm bc its so underwater but we LOVE our house love our neighborhood. Plus if we were to rent we would have to spend about 3k a month anyway and we wouldnt get the tax breaks.
    We have 4 kids (2 are still babies) and moving us would be expensive and a nightmare!

    I have heard recently of a ride-thru. Where you dont reaffirm or affirm you just do nothing. I am wondering if that means we just keep paying and then after the discharge and years from now if we are still underwater we can still walk??

    Anyone have any advice? Im so overwhelmed with stress and worry all the time. I wish we could just get an answer from Chase about the loan mod. Husband has a good paying job and they are stupid to let us walk and get this asset back...why don't these banks see that!

    Thanks so much!
    Tags: None
    #2
    Are you both on the mortgage? Did you both file BK?

    Your husband is correct. Reaffirming that debt wouyld be a big mistake given how upside down you are now. I would recommend a ride through.

    If you do a loan mod post-bk you'll be essentially reaffirming the loan. Be careful!
    Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

    Comment

      #3
      Only he is on the mortgage and only he filed BK...
      what if we get the loan mod during the bk before the discharge?

      THank you so much!

      Comment

        #4
        Originally posted by novemberbg View Post
        Only he is on the mortgage and only he filed BK...
        what if we get the loan mod during the bk before the discharge?

        THank you so much!
        The bank is not going to do a loan mod while the automatic stay is in place. I doubt the bank is working on a mod any longer.

        What I would do in your situation is do the ride-thru then stop paying the mortgage. You'll be able to live in the house for quite some time before the foreclosure process gets you out. There are websites that list how long one typically is in the house before the foreclosure process completes. In the meantime you can save $3,700 each month toward a downpayment on another house in the same neighborhood that you was once worth $800K but now sells for $500K. In 10 months you'd have a $37,000 down payment.
        Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

        Comment

          #5
          Ohio
          Thank you for your advice. There is an automatic stay in place but we had our atty write a letter to chase giving them authorization to talk to us..so..not sure where that leaves us.

          We are 2 mos behind in our payment. (My income which used to be 85k a year has dropped to almost nothing) and we have had a harder and harder time making that payment. We could pay next months payment but wondering if its even worth it.
          Can you explain the ride-thru thing for me? Would we have to get current to do it? Its basically that we do not reaffirm and then we just keep paying and say in 1 or 2 years we decide to move we can just abandon the mortgage even if its way underwater?

          Comment

            #6
            a loan modification without a MASSIVE principal reduction may very well be setting you up for FAILURE.

            Failure in the sense that your LOAN will likely exceed the equity in your home till the time your youngest is ready for college.

            Failure in the sense that should your financial situation not improve, you might be facing an inability to pay a reaffirmed mortgage in a year or three AND THEN you cannot file bankruptcy for YEARS and if you think you have stress now...

            Comment

              #7
              The lender has zero incentive to offer any sort of mod or to do anything at all, except foreclosure. On large loans like yours (and most over a few hundred thousand) the lender almost certainly has you paying for PMI (Private Mortgage Insurance). This insurance, paid by you, insures the LENDER against loss. If they foreclose and sell it for a dollar, the PMI company will pay the lender the difference.

              The lender will not lose any money on your loan. In fact, considering you have paid on it for a while, the lender is making out like a thief, having collected all your payments and being guaranteed the amount of the original loan as well, through the PMI.
              11-20-09-- Filed Chapter 7
              12-23-09-- 341 Meeting-Early Christmas Gift?
              3-9-10--Discharged

              Comment

                #8
                You will have to be current on the mortgage in order to do a ride-thru in a BK 7.
                CH 7 Filed 6/26/09
                341 Meeting 7/27/09
                Last day for objections: 9/25/09
                When life gives you lemons, slice them and add to your Margarita!!

                Comment

                  #9
                  Hi. We dont have PMI since we put 20% down.

                  Regarding being current, we are now about 75 days late. Should we get current or is it too late since we already were not current..
                  I do think they have a lot of incentives to mod our loan . If we walk they get stuck with a house that they probably would get get 475k and a loan bal of 698.


                  Should we try to get current and go with the ride-thru? If we do the ride-thru and turn down any mod offer..then we make our payments as normal and say 2 yrs from now, when we move and are still upside down we can walk with no penalties?

                  Comment

                    #10
                    You can still get current, it does not matter if you were current when you filed as long as you are current before you discharge.

                    doing a ride thru means you state you will reaffirm on your bk petition but never sign the reaffirmation agreement. I may be wrong but I thought I heard Chase does not do affirmations which means you can keep the house as long as you make payments and yes you will be able to just walk away whenever you want and would not be responsible for the difference.

                    As far as the mod goes, could you extend the term of the loan out to 40 years or reduce the interest rate? I personally would not reaffirm if your only hope is a principle reduction, I'm not sure that will happen. Do you meet the requirements for the making homes affordable act?

                    Comment

                      #11
                      It seems like a no brainer. We were looking for a principal reduction and to make our payment about 700/mo less
                      BUT if we can scrimp and save and afford this current payment- ride thru on this mortgage we can stay here, get the tax write off on the interest and still walk away whenever...

                      If we have them do an escrow analysis and can save a few hundred there (i know we are escrowing too much) then we are closer.. signing any kind of loan mod at this point seems ridiculous. They arent going to do a principal reduction of 200k!

                      Does the ride-thru thing work state by state? Does FLA allow this? Wouldnt Chase know that we can do this and offer us a big loan mod incentive to reaffirm??? They know that they will lose out with us in the long run, right?

                      Comment

                        #12
                        you would think they wouldn't want your house, but they have no common sense. It seems like they would rather take the loss. I hope that is not the case for you.

                        Comment

                          #13
                          Originally posted by novemberbg View Post
                          It seems like a no brainer. We were looking for a principal reduction and to make our payment about 700/mo less
                          BUT if we can scrimp and save and afford this current payment- ride thru on this mortgage we can stay here, get the tax write off on the interest and still walk away whenever...

                          If we have them do an escrow analysis and can save a few hundred there (i know we are escrowing too much) then we are closer.. signing any kind of loan mod at this point seems ridiculous. They arent going to do a principal reduction of 200k!

                          Does the ride-thru thing work state by state? Does FLA allow this? Wouldnt Chase know that we can do this and offer us a big loan mod incentive to reaffirm??? They know that they will lose out with us in the long run, right?
                          It's unlikely Chase owns your mortgage. Chase only services your mortgage. They lose nothing if foreclosure occurs. In fact, they make money on a foreclosure given the fees they are paid.

                          Ride throughs are not regulated by state. Ride throughs are no longer an official option in the BK law.
                          Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                          Comment

                            #14
                            UGH...Ride thrus are now not an option? Really? Why am I hearing so much about it, then?

                            CHase does not own our mortgage...we believe its investor owned (WAMU backed securities) or something like that.

                            You are right, Chase/WAMU already sold it off and made their money. But if they are negoiating on behalf of an investor you have to think that the investor wouldnt want this asset back either when they have paying customer living in the house..

                            Can someone please verify the ride-thru thing? Can it be done?

                            Comment

                              #15
                              Originally posted by novemberbg View Post
                              UGH...Ride thrus are now not an option? Really? Why am I hearing so much about it, then?

                              CHase does not own our mortgage...we believe its investor owned (WAMU backed securities) or something like that.

                              You are right, Chase/WAMU already sold it off and made their money. But if they are negoiating on behalf of an investor you have to think that the investor wouldnt want this asset back either when they have paying customer living in the house..

                              Can someone please verify the ride-thru thing? Can it be done?
                              Ride throughs are no longer an OFFICIAL option. Unofficial ride throughs are done all the time.
                              Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                              Comment

                              Previous 1 2 template Next

                              bottom Ad Widget

                              Collapse
                              Working...
                              X