home included in bk7 can we walk away at anytime?

[famlena]

our home was never reaffirmed after bk7. can we continue to occupy the home and then walk away in 3-4 years without being personally liable?

our 1st is set to adjust & payments would actually be lower than what we are currently paying. which is manageable since rental in this area would be comparable. we plan to rebuild our credit during this 3 year period where our rates is still low. then hoping to be able to refi or getting something fixed. however, if we weren't able to do this in 3 years can we still walk away? is there statue of limitations regarding how long after discharge we can walk away without any personal liabilities?

we have a 2nd & they are trying to settle or modify. we will know within the next couple of weeks.

thanks for any input or help anyone can offer.

[LimpDisc]

After filing BK I don't think your mortgage company will report your payments to the credit bureaus without reaffirming. Which means you can't rebuild credit with your mortgage.

Will you sign new paperwork on the 2nd mortgage after modification?

[OhioFiler]

Post-discharge you can walk away from the property any time you like. You don't owe the bank a dime.

[CCsAreEvil]

our home was never reaffirmed after bk7. can we continue to occupy the home and then walk away in 3-4 years without being personally liable?

our 1st is set to adjust & payments would actually be lower than what we are currently paying. which is manageable since rental in this area would be comparable. we plan to rebuild our credit during this 3 year period where our rates is still low. then hoping to be able to refi or getting something fixed. however, if we weren't able to do this in 3 years can we still walk away? is there statue of limitations regarding how long after discharge we can walk away without any personal liabilities?

we have a 2nd & they are trying to settle or modify. we will know within the next couple of weeks.

thanks for any input or help anyone can offer.

1. As long as you included your mortgage loans in your Ch 7, you are no longer (ever) liable for the "debt". The mortgage liens stay, though. You can walk away today or years from now (at any point).

2. In almost all cases, it appears (even though you are still making mortgage payments) that the mortgage companies will NOT report your payments each month. So, the mortgage payments themselves will not help build your credit. You have to find other means to do that (secured credit card or similar).

3. Refi. I still find this interesting. I guess it's possible in 3+ years to refi on your home as long as you have a decent LTV (90% or lower.. 80% or lower would be ideal).

I'm surprised your 2nd is willing to settle. Are you behind at all on those payments? Did you approach them or they just gave you a deal? Would you mind stating how much you still owe on your 2nd and what they would like to settle for? Others have stated around 10-15% of principal.

Lastly, when people "settle" on their 2nd (to remove the 2nd's lien on the property), do they expect a lump sum payment right away?

[famlena]

thank you for your replies. a follow up question...since the bank do not report it on the credit then we can once in a while be behind on payments
(2 months). they can't just foreclose on us if we're only 2 months late? Also, in the future if there becomes equity in the property the bank can't just decide to sell it, can they?

i'm not certain about the 2nd they are in the process of assigning my settlement to a negotiator. i should be hearing from them within a couple of weeks. i offered 11% (17k) to settle on balance of 150k. the 2nd is not completely unsecured. i am behind on both the 1st & 2nd. the settlement has to be a lump sum which i had to send in bank statements to show that the money is there. i am borrowing part of it from my relative. from my recent conversation with them it seems they will more likely try to modify.

i am working with the 1st to forebeare the payments that i was behind on. i will hear from them in a couple of weeks as well.

[AngelinaCatHub]

thank you for your replies. a follow up question...since the bank do not report it on the credit then we can once in a while be behind on payments
(2 months). they can't just foreclose on us if we're only 2 months late? Also, in the future if there becomes equity in the property the bank can't just decide to sell it, can they?

i'm not certain about the 2nd they are in the process of assigning my settlement to a negotiator. i should be hearing from them within a couple of weeks. i offered 11% (17k) to settle on balance of 150k. the 2nd is not completely unsecured. i am behind on both the 1st & 2nd. the settlement has to be a lump sum which i had to send in bank statements to show that the money is there. i am borrowing part of it from my relative. from my recent conversation with them it seems they will more likely try to modify.

i am working with the 1st to forebeare the payments that i was behind on. i will hear from them in a couple of weeks as well.

I would not be late at all. You are then skimming thin ice. It may be possible for them to "call" your note due in whole and then they will foreclose if you can't pay them. Keep up the payments in a current condition and keep them happy. I would give them no reason to cause you further troubles. 'Hub

[famlena]

Thanks, 'Hub