Question regarding mortgage statement wording

[newstarts]

This is my second post in this forum...all of the information I've found has been extremely helpful. We filed for Chapter 7 on June 9 and our 341 meeting is this Friday. Yes, I am nervous going in, but hopefully things will go smoothly as we are a no asset case. My question for those of you here: on our 'For Informational Purposes' monthly mortgage statement from Wells Fargo, it states: If you have received a discharge, and the loan was not reaffirmed in the bankruptcy case, we will only exercise our rights as against the property and we are not attempting any act to collect the discharged debt from you personally. I understand all of that statement except: We will only exercise our rights as against the property. We are not reaffirming our mortgage, but we do plan on the stay and pay option. What exactly does the statement mean that they will only exercise their rights as against the property??? Can they foreclose on a mortgage that is current and never in default? I'm not sure why they would want to as the house is assessed for $60,000 less than the mortgage...any help is appreciated. Thanks to all for posting here!

[FLBroke]

I also have a mortgage with WF. I had full intentions of reaffirming, signed the paperwork and sent it back to them. They never filed with the court, WF was saying that it is my attorneys job to file it, attorney said it was theirs. End result, agreement never got filed, I got discharged and never reaffirmed. WF never limited my online access, and although it says on my CR IIB, they are reporting on time payments. My understanding is that they can not foreclose while you are making payments. Plus, with the real estate market and as many foreclosures, why would they? I surrendered another home in BK and got a letter today from them asking to work things out... no one wants our houses...that's the bottom line. Good luck with everything! It will soon be over!

[blockhead]

This is my second post in this forum...all of the information I've found has been extremely helpful. We filed for Chapter 7 on June 9 and our 341 meeting is this Friday. Yes, I am nervous going in, but hopefully things will go smoothly as we are a no asset case. My question for those of you here: on our 'For Informational Purposes' monthly mortgage statement from Wells Fargo, it states: If you have received a discharge, and the loan was not reaffirmed in the bankruptcy case, we will only exercise our rights as against the property and we are not attempting any act to collect the discharged debt from you personally. I understand all of that statement except: We will only exercise our rights as against the property. We are not reaffirming our mortgage, but we do plan on the stay and pay option. What exactly does the statement mean that they will only exercise their rights as against the property??? Can they foreclose on a mortgage that is current and never in default? I'm not sure why they would want to as the house is assessed for $60,000 less than the mortgage...any help is appreciated. Thanks to all for posting here!

I have exactly the same wording. I did not reaffirm.

If you stay current as you say it is hardly likely they would (or could - in some states they cannot foreclose or accelerate the note for non-monetary reasons such as declaring BK) foreclose or accelerate the note. It's a matter of state law so check with your attorney.

But bottom line is keep current and they won't complain.

[ladyjenn]

I also have a WF mortgage, but have not filed yet. I was curious as to how they handled the stay and pay option. It IS interesting that they are reporting your on time payments. Does it say pays as agreed or voluntary payment made?

[FLBroke]

Here is a copy from TU report, and it is the same on all three. I am curious to see if they will report it this month, since I got discharged in June.

WELLS FARGO HOME MORTGAGE
Balance: $0
Date Updated: 06/2010
High Balance: $141,234
Past Due: $0
Pay Status: Paid or Paying as Agreed
Account Type: Mortgage Account
Responsibility: Individual Account
Date Opened: 12/2008
Date Closed: 06/2010
Loan Type: FHA Real Estate Mortgage
Remark: >Chapter 7 bankruptcy<