Filed Chap 7...FC sale is in a few weeks in California...would like to stay in home

[BKIN2010]

I filed Ch 7 recently...1st has set a FC sale date in a few weeks. The second charged off and the account has been showing a zero bal for awhile now. Before getting on this board I had no intention of staying in the house.

I stopped paying both the 1st (Bofa) and 2nd (Chase) a while back. BofA put me on a temp mod for six months and when that ended without a perm mod I stopped paying. I never paid Chase again after the initial default. I tried to short sale unsuccessfully. The sale date has been postponed once already. My atty said that bofa will probably file for a lift of stay and continue with the FC.

I am wondering after reading the posts here what the chances are of a modification and a principal reduction and a settlement with Chase to release their lien? Has anyone had any experience with these banks in Calif? Current house value is approx. 40% of loan. 2nd is defi SOL and 1st is upside down.

Thanks for all the help!

[BKIN2010]

*Bump*

[newbie2]

It is much easier to settle the 2nd mortgage after bankruptcy if you don't have the other issue on your plate: Not paying your first mortgage and the foreclosure proceedings. Since your first mortgage company has already started foreclosure proceedings and have denied you a modification then I think you would probably be best served to start planning on somewhere else to live. You are so far underwater with this home it also makes the best financial sense.

[BKIN2010]

Thanks newbie2!

It is much easier to settle the 2nd mortgage after bankruptcy if you don't have the other issue on your plate: Not paying your first mortgage and the foreclosure proceedings.

Not sure what u mean. I thought the two are separate. 1st the 2nd will both get discharged in Ch 7. If I manage to get a modification the 1st could add the arrears onto the loan and and I can start paying again. I have read here that some people have been able to do this. The second will still hv a lien but might be motivated to settle due to no security as the house is under water.

Since your first mortgage company has already started foreclosure proceedings and have denied you a modification then I think you would probably be best served to start planning on somewhere else to live. You are so far underwater with this home it also makes the best financial sense.

I am already looking and before I found this board had no intention of staying. What I have read here seemed to suggest that there is a possibility to have the first do a modification and maybe even a principal reduction which could result in a payment that is less than what I would pay for a rental. In that case it may be worth it to stay. That's where I am coming from.

I just figured with the BR BofA might be motivated to modify (atleast that seems like what i have been reading). The other option is to FC and I dont think those are working too well in my area. If they FC they will prob end up keeping the house. The FC notice has an a sale amount that is way over the value of the house. Btw, does the bid start at this amount or can they sell to someone for a lesser amount? Anyway, I just wanted to see if anyone has had any experience with my situation.

[BKIN2010]

*Bump*

[HHM]

Principal reduction odds: ZERO

Post BK Modification after already be denied: 1 in 10. (who knows, really, has anything changed aside from you filing BK). Can you actually afford your 1st mortgage payment.

Generally, at foreclosure, the bid is set for whatever is owed on the 1st mortgage, no one bids, and the bank takes in the property as a REO. At some point, the property will be turned over to a real estate agent to be sold on the open market.

I concur with the above advice, Fantasy Land is located in Disneyland, since you can't live there, better start making plans to move.

[BKIN2010]

Principal reduction odds: ZERO

Is this from personal experience?

Post BK Modification after already be denied: 1 in 10. (who knows, really, has anything changed aside from you filing BK). Can you actually afford your 1st mortgage payment.

Nothing has changed. I guess my post was misleading. I never actually received an official denial. But I never also got a perm mod after the trial one. And yes, I can afford the 1st mortgage. I will pay more in rent.

I concur with the above advice, Fantasy Land is located in Disneyland, since you can't live there, better start making plans to move.

Not sure what you mean with "cant live there". I have an option of living somewhere else. I just want to see what the possibility of staying is. If it doesn't work out to my benefit financially i don't mind moving.

I am hoping to hear from those who have been in the same boat as me to see if I can draw from their experiences.

[BKIN2010]

*Bump*

[scorpion35]

I filed Ch 7 recently...1st has set a FC sale date in a few weeks. The second charged off and the account has been showing a zero bal for awhile now. Before getting on this board I had no intention of staying in the house.

I stopped paying both the 1st (Bofa) and 2nd (Chase) a while back. BofA put me on a temp mod for six months and when that ended without a perm mod I stopped paying. I never paid Chase again after the initial default. I tried to short sale unsuccessfully. The sale date has been postponed once already. My atty said that bofa will probably file for a lift of stay and continue with the FC.

I am wondering after reading the posts here what the chances are of a modification and a principal reduction and a settlement with Chase to release their lien? Has anyone had any experience with these banks in Calif? Current house value is approx. 40% of loan. 2nd is defi SOL and 1st is upside down.

Thanks for all the help!

so as long as it benefits you financially u want to stay and live rent free?
talk about milking the system

[BKIN2010]

so as long as it benefits you financially u want to stay and live rent free? talk about milking the system

Your post is laughable! Don't you have anything better to do?

[helpme2010]

I don't agree with the milking the system comment. bk simply wants to stay in the house as long as he can until he can find another place. Why the hell not. This is one of the reasons why this board is here, to give advice to help people with questions like this.

I recommend you consider filing a chapter 13 if you want to buy some more time. It will cost you a pretty penny, but probably not nearly as much as rent. It could buy you 2.5 to 3 months or longer of time, but may cost you $1700 or more. But if they are about to auction your house, that is a couple to a few months more time.

Getting a loan mod at this point is very likely not going to happen. A short sale extension maybe, maybe not. Neither of these worked for me with my lender.

[debee]

I agree w/helpme2010. The rent-free aspect of foreclosure is the bright side. We're all here trying to help each other make the most of a less-than-perfect situation.

I don't have loan mod experience and haven't read anything beyond personal stories posted here at bkforum. There are people at the forum who wanted a mod and tried for a mod and got nowhere month after month and then as soon as they filed bk, suddenly the lender wanted to work with them. There are also people here who were able to settle their 2nds for 5-10%. Since your case got as far as a sale date, I don't know what options you would have other than ones already mentioned by the others in this thread. Has your attorney tried contacting your lender to see if they'll work it out with you so you can stay?

[helpme2010]

I agree w/helpme2010. The rent-free aspect of foreclosure is the bright side. We're all here trying to help each other make the most of a less-than-perfect situation.

I don't have loan mod experience and haven't read anything beyond personal stories posted here at bkforum. There are people at the forum who wanted a mod and tried for a mod and got nowhere month after month and then as soon as they filed bk, suddenly the lender wanted to work with them. There are also people here who were able to settle their 2nds for 5-10%. Since your case got as far as a sale date, I don't know what options you would have other than ones already mentioned by the others in this thread. Has your attorney tried contacting your lender to see if they'll work it out with you so you can stay?

thanks debee. When I tried for the loan mod and short sale stalls, my lender told me that it was too late in the process to do this (since my home would be auctioned in a couple weeks). They told me had I done this months earlier, I would have had a better chance. I told them I was in the middle of bk during that period and my attorney said I had to wait for bk to be done.

Screentest has had success stalling a foreclosure/auction date by trying both of these. Like I said, I tried it and it didn't work.

If you are going to lose your house, it's obvious you aren't doing this for fun and games, you are doing it because you are in serious financial trouble and are doing everything you can to make your situation better. It's like asking for cash for keys. Why not. It's like filing a chapter 7, why not. Do what you have to do to protect your assets and if you can find tactics to stay in your house longer rent free, go for it. The mortgage company is making out like a bandit, and whether they sell your house next month or 6 months from now, they will still get all their money.

[BKIN2010]

Thanks a lot debee and helpme!!