Chapter 7 in PA

[xena]

We are planning to file in June 17, 2010. Per our lawyer, we qualify for C7. I need advise on what to as far as our mortgage.

1st mortgage = 200K
2nd mortgage HELOC= 53k
Valued of house 220K
CC Debt 100k

I have read so many threads about other people's success stories about lowering their interest rate on their 1st mortgage and settling their HELOC. We want to keep the house but would like to lower our interest rate currently 7.125% on the 1st mortgage and settle the HELOC (variable rate).

Can someone please advise on what we need to do?

Should we stop paying our mortgages? Should we reaffirm? When do we start negotiating with Wellfargo about lowering our interest rate and settling the HELOC? Can you pay monthly on settlement for HELOC or you have to pay lump sum?

I read some threads that some did not reaffirm both mortgages. Do you stop paying the bank then and wait for them to negotiate?

Please help me! I really don't understand a lot of this and I'm lost of what we need to do. Any advise would be greatly appreciated.

[nc73]

Well what do you want to do? I'd lose the house though and that would mean stop paying.

[bktmom28]

From everything I have experienced and read, you need to be behind on your mortgage for them to even consider helping. If you want to keep your house and modify your loan, then I would stop paying your house payment now. If you are planning on filing in July then, that would give you time to modify your loan and have it reaffirmed when you file. I would stop paying your credit cards. We tried to modify and were current and they refused to help us. We were 60K upside down and our attorney advised us to walk away. Now, the house sits empty getting more and more run down each day. It makes me sad, but at the same time, if we wouldn't have walked away when we did, we would still be drowning.

[xena]

We want to keep the house but hoping to make a deal with Wellsfargo like some of the members here have done. Like lowering the interest rate and monthly payment for 1st and settling HELOC. We stop paying CCs in March.

If we don't reaffirm mortgages, but we continue to pay after the discharge, can Wellsfargo change anything like raise the percent or anything to keep us from having rights to the house?