Filed on 8/30 341 on 10/6, we want to keep the house as we have about 80k in equity so we homesteaded it ( in florida you get unlimited under homestead ). We have a home equity loan which we owe around 30k on. I recently read on the contract with them that they can default the loan if we file bk. Never late with payment and current. Do you think they will try to foreclose on us. Got me worried now.
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Last edited by 05mag; 09-21-2010, 06:24 AM. -
Didn't mention in the first post we have no morgage on the house, just the home equity loan. I'm worried because we have so much equity they will try to foreclose and take that. Any ideas on the problem? -
are you continuing to pay on the home equity loan? If it's a 2nd mortgage then they can foreclose and will to get the 30k.Comment
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Yes up to date on the payments, we want to keep the house, if they foreclose do they get get to keep all the house is worth (about 110,000 ) or just the 30k?Comment
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If you stop making payments, the bank can and probably will foreclose. It sounds to me, though, like you're worried that the bank will see a strategic opportunity to profit from foreclosing on your home because they could sell it for a profit. It doesn't work that way. The bank can only recover what it's owed. I see no incentive for them to foreclose simply to recover what you owe when you are continuing to make payments. I am sure they are already up to their ears in foreclosed properties, particularly with Florida's foreclosure rate being so high, not to mention bankruptcies. I am sure they will be more than happy to work with you even if you don't formally reaffirm the debt.4/2010 - Filed Chapter 7 no asset case w/car reaffirm
5/2010 - 341 meeting, no creditors present
10/2010 - Reaffirm finally approved and case discharged the same dayComment
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The Home Equity Loan IS the mortgage, it's in first lien position. Since there is so much equity I would re-affirm the mortgage and then you won't have to worry about it.Comment
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Thanks, I plan on reaffirming the house, do I contact the lienholder or will they sent forms to my attoreny?Comment
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They should send the forms to your attorney. As long as you reaffirm and stay current, they won't be able to forclose.Comment
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