What do I do about my property

[t606149]

I own a home in Wisconsin on a 'Land Contract' and my intention was to do a total remodel of the home however, over the past years, the value has dramatically dropped and I've had to file Chapter 7 bankruptcy. I did not include the home in my original papers but now after doing some extensive research, having the house remodeled in addition to my mortgage will not be feasible due to the costs.

I've already had my 341 meeting and have asked my attorney to amend my papers to include the house. The mortgage company contacted me and told me that I can't include the house unless they foreclose. Is that really the case? I want to make a clean start but I am confused on what I should do at this point. Any comments or suggestions? If you have any additional questions, please let me know.

[despritfreya]

First, every debt and every asset you have needed to be listed. You owe money for the purchase of the property and that needs to be on Schedule D (maybe it's G as maybe the land contract is an executory contract - I'm not sure). You have an "interest" in the real property through the land contract therefore the property needed to be listed on Schedule A.

Second, you can surrender the property, plain and simple and discharge the underlying debt.

Third, never listen to a creditor.

Fourth, follow through with the amendments.

Des.

[t606149]

What do I do about my property

Thank you for responding. What are my options going forward? How long does this process take and how long will I be able to remain in the house until I have to be out? I've already had my 341 meeting and the discharge date is suppose to be Dec. 12, 2010however, I've asked my attorney to amend the BK to include the house now.

Here is exactly what the mortgage guy told me via e-mail:

"I don’t know who is giving you advice, but I can assure you letting go a house will not give you “ as better credit base”. At some point in the future you are going to want to get a home loan and will have to explain at that point why you filed BK – giving you no other monthly payments on your income – and STILL went thru a foreclosure on payments of less than $800. An underwriter will say “that doesn’t make any sense”. You can’t just give the house back because we would have to go thru foreclosure to clear title. Whoever is telling you to give up the house has no idea the severity difference between a simple BK and having a BK PLUS a foreclosure, especially when it doesn’t add up. With no other debt, you should have no problem paying less than $800 a month."

Thank you.

First, every debt and every asset you have needed to be listed. You owe money for the purchase of the property and that needs to be on Schedule D (maybe it's G as maybe the land contract is an executory contract - I'm not sure). You have an "interest" in the real property through the land contract therefore the property needed to be listed on Schedule A.

Second, you can surrender the property, plain and simple and discharge the underlying debt.

Third, never listen to a creditor.

Fourth, follow through with the amendments.

Des.

[newbie2]

Thank you for responding. What are my options going forward? How long does this process take and how long will I be able to remain in the house until I have to be out? I've already had my 341 meeting and the discharge date is suppose to be Dec. 12, 2010however, I've asked my attorney to amend the BK to include the house now.

Here is exactly what the mortgage guy told me via e-mail:

"I don’t know who is giving you advice, but I can assure you letting go a house will not give you “ as better credit base”. At some point in the future you are going to want to get a home loan and will have to explain at that point why you filed BK – giving you no other monthly payments on your income – and STILL went thru a foreclosure on payments of less than $800. An underwriter will say “that doesn’t make any sense”. You can’t just give the house back because we would have to go thru foreclosure to clear title. Whoever is telling you to give up the house has no idea the severity difference between a simple BK and having a BK PLUS a foreclosure, especially when it doesn’t add up. With no other debt, you should have no problem paying less than $800 a month."

Thank you.

First, stop talking with the lender. They are going to try anything to keep you paying (as evidenced by the email). Secondly, they still have to follow your states foreclosure laws. You probably have quiet a few months ahead before you have to worry about moving. Save your mortgage money and plan for your future.

[t606149]

What to do about my house?

Thank you for your advice. I am still awaiting word from my attorney. I was hoping that the mortgage company would contact me back about a loan modification to make it more appealing for me to stay in the home instead of giving it back.

First, stop talking with the lender. They are going to try anything to keep you paying (as evidenced by the email). Secondly, they still have to follow your states foreclosure laws. You probably have quiet a few months ahead before you have to worry about moving. Save your mortgage money and plan for your future.

[mrskal]

Like the others said, the home has to be in your filing. I think if you Bk on the house as well, it should be listed on your credit report as IIB and not a foreclosure or both. It will have to go through the process of foreclosure yes, but wont be listed that way on your report. Agree also, dont talk to the lender! If you want to get a modification, be ready to wait a really long time. Most people get pushed and shoved around for months and months on those things. Search this forum for info on that, or try loansafe.org, it is loaded with people who are trying to do it too.

[tyson24]

I know people that are still in their homes a year later...and that is after a bk. It all depends on your situation, location and lender.

Put the home in your filing


Not advice