File a 13 and be done, or a 7 and take the risk?

[browneyes]

We qualify for a 7. Lots of CC debt would be d/c which in and of itself would be a huge relief...

We are also behind on our mortgage with Wells Fargo. Now have a special forbearance in place where we are paying an extra $300 a month (supposed to show we can afford the taxes too).

Has anyone successfully managed a permanent mod with Wells Fargo after filing a chapter 7? Part of me just wants to do the 13 and get on with my life. I don't want to file a chapter 20 (7 then 13) unless I absolutely had to. If I am going to pay all of these fees twice I would rather avoid it.

Thanks for any input.

[AngelinaCatHub]

We qualify for a 7. Lots of CC debt would be d/c which in and of itself would be a huge relief...

We are also behind on our mortgage with Wells Fargo. Now have a special forbearance in place where we are paying an extra $300 a month (supposed to show we can afford the taxes too).

Has anyone successfully managed a permanent mod with Wells Fargo after filing a chapter 7? Part of me just wants to do the 13 and get on with my life. I don't want to file a chapter 20 (7 then 13) unless I absolutely had to. If I am going to pay all of these fees twice I would rather avoid it.

Thanks for any input.

It is only my opinion, but, a 7 is easier, it cuts out the dragging on and on of pain. It is a craps shoot on the mortgage but seeing the vast amount of empty housing around me, they don't want your house. Attempt a pay through. Don't reaffirm. If you are in trouble now and expect this economy to get better, don't hold breath. If it gets worse, then you have an out. Get it over, give them the house if you have to as there is a glut of others out there and soon you will be able to purchase.

Have you heard of "Contract for Deed"? Read up on this as I have purchased using this. No credit check and walk away is non penalty. 'Hub

[browneyes]

As far as we have come we have never even considered the walking away option. We don't plan on leaving, that's what makes this so hard!

[bktek]

After I filed CH7 I spoke with Wells Fargo about a reaffirmation agreement and new loan terms. I was told by their bankruptcy department that they would reaffirm the loan, but they would not renegotiate the terms while I was under BK. I passed on that option and they are allowing me to pay through. I was and am current on my loan, however. It might be different in your situation. You should contact the BK department at Wells Fargo and see what they will offer you in the way of options.

I also agree with Hub that a CH7 is the best way to go if you qualify for it. It's much easier and will permanently erase all of your debts, excluding taxes, student loans and a few others. I know that keeping your home is a very emotional subject, but you should weigh the situation realistically. It might be in your best interest to have the mortgage discharged with a CH7 so you can simply walk away if you find yourself unable to afford the house.

[browneyes]

So did they offer to do modification after discharge of the bk, or did the conversation not go that far?

We do love our house but also know it is a good investment. What got me behind to begin with was robbing Peter (mtg) to pay Paul (credit cards). If I had never done that to begin with, I wouldn't be in this situation. We can afford the payment and all I have been trying to do with WF is to get the arrearage caught up. It's very frustrating to even deal with them because it's like the evil vortex of doom. I just want to get back to normalcy.

[midnight]

We're currently in the middle of a loan mod with Wells Fargo. I've made two trial period payments (3rd one will be this Friday). I've called a couple times and have been told my bankruptcy filed on 11/20/09 has not impacted the loan mod. I was also told they do not do not require reaffirmations in bankruptcy anymore. I swear, I get a different answer each time I speak with someone. We're due to be discharged in about a month. Still have no idea what's going to happen.

[browneyes]

midnight, were you behind before you filed?

Please keep us posted as to what happens!! I wish you good luck!

I am going to talk to the BK dept tomorrow.

[catleg]

Take the 7 if you can.
A lot happens in 5 years. You may never complete the plan.

[bktek]

So did they offer to do modification after discharge of the bk, or did the conversation not go that far?

It never got that far. After reading about BK here and other places, I decided against it. About the only positive I could see to reaffirming is that the payments would be acknowledged on my credit report.

Again, talk to the BK department at Wells Fargo. If they will let you pay through, you still get to keep the house as long as you can meet the payments. And if you pay it off, it's yours.

[BKInLA]

Go with the 7, stop paying credit cards immediately and just prepare to let them all go to s***. I should have stopped paying the cards months ago but will officially miss my first payment Feb. 5th. Planning to file within the next 30 days or so.

Are you upside down on your house or is there equity in it?