Filing 7 with mortgage past due

[patchessl]

Here is the situation: ready to file chapter 7 but worried about being 30+ days past due on mortgage.

I have been running 28 days late for 3 months since spouses stroke and have been working on getting caught up, but when the car called it quits that put me in a position of either buy a car or lose job and therefore missing this months payment. So it will be 60 days past due at the end of this month.

I will be reaffirming the mortgage and a car loan. With everything else out of the way and not attaching bank accounts and such that will be no problem.

So should I work out a forebearance with my lender to bring payments current before filing? Can I continue to make payments during the case?

The lender is Flagstar Bank. FHA fixed @ 7%, balance below 100k and had the loan since 2004. Anyone dealt with them in a similar situation? How easy is it to get a forebearance with them? If they agree to it I would like to roll 3 payments to the end of the loan, file a 7 and be happy campers.

Our income is VA disability and my part time job. The house is worth just about what is owed at this point.

Oh yeah; passed Means way below median, no asset case, filing Pro Se.

Not getting further behind on house or having them do something horrible like start foreclosure is biggest worry - do NOT want to lose the house.

Thanks for any input!

[iv65536]

I think the bank would be willing to work with you after discharge - generally, they would prefer to have the money rather than the collateral, and I doubt they would want your home on their books. However, you may want to look into a Chapter 13 even if you are under median.

[SMinGA]

I would suggest try to contact the lender now and see what they can do to work with you. If there is no immediate reason to file (garnishment looming) then try to resolve that first. You need to be current on your home at the time of filing ch. 7, my understanding at least.

Ch. 13 would always be an option to cure the mortgage arrears but in your case it might cost more than you save. I would not go ch. 13 pro se (though some have) and atty fees for that may be more than your 2 months of mortgage payments.