CH& and on Mortgage Repayment (not loan mod) plan...

[sh9730]

Ok, I decided to do a new post on this since its slightly additional information that changes my earlier post.

Ok, so I plan on filing BK - probably CH7 - in early May....as my earlier posts state, I am currently 3 months behind on my mortgage. I had rec'd and agreed to a REPAYMENT (catch up over 8 months) plan with Chase. The original lump sum payment of 2K was supposed to be paid on 4/15. Didnt get quite as much money together as I had hoped and will be unable to make that payment. Thought that was it...either do a CH13 (which is not my first choice for a lot of reasons), or lose the house.

SO, with nothing really to lose, I called Chase today and they have agreed to move back the repayment plan (again this is not a loan modification - just a catch up plan) a month and have it start in Mid May. Of course that means another payment would be due, so my monthly payments go up a bit compared to when we were only behind 3 months....but after the BK that wont be an issue.

The CSR on the phone (who I am sure has zero power to agree to anything really) says that as long as I keep the house out of the BK (not sure whether that means reaffirm or pay and stay) even if I file a CH7 they will not go into foreclosure proceedings if I stay current on the repayment plan and then of course on future regular payments.

Anyone see a red flag other than if I dont include it in the BK they can move forward with the foreclosure? I live in a non-recourse state (AZ) so as I understand it the worst that could happen is I get a 1099 for the deficiency and even that I hear doesnt happen....

I am going to run all this by my lawyer of course before I actually file next month...but there are some really smart people here so I trust your input so I ask the right questions etc...

Basically...with this new plan in place - even though at time of filing I will have only made the first lump sum payment - think Im safe from losing the house when I file the CH7?

Thanks so much - already a lot of help from people here!

[Freddy03]

I think "keeping the house out of the BK" would require reaffirming the mortgage.

[sh9730]

Thanks Freddie, but with that caveat that I would likely have to reaffirm (I dont have big problem with this - I live in non-recourse state so), you think I ll get to keep the house....based upon above?

[Freddy03]

I'm the last person to give advice on mortgages as I'm in my own pickle myself...LOL In my opinion if you reaffirmed, have 0 equity and you continue to make the repayment plan payments (on time) the mortgage co probably wouldn't start to FC. But that's just my opinion. I'm struggling myself with filing Ch 7 (in 2 weeks) and being behind on my mortgage. I'm not reaffirming.

[tobee43]

hi there,

nope, don't believe for one moment that chase would allow it in az...although, it's in the top 3 for foreclosures.....mooy, yet, i'm waitng over 3 years for them in nj. it makes absolutely no sense. however, i think you have some time with it.

i don't really know about smart people here...LOL!!! only many that have lived and breathed it. the 1099 it mot provided you are bk. so no worries there at all.

i understand these are really difficult times for you. however, you need to stop and make the BEST business decision for your family without emotion, as impossible as that may seem.

[sh9730]

Yeah, little update (as for most of us, this situation changes every minute...) my lawyer confirms that this is between me and the bank, and if I keep it outside of the BK, then I can negotiate with Chase as I want. Chase says as long as I stay current on the NEW loan repayment plan they wont foreclose. I tend to believe them...they dont need another house here in AZ, even though I am not THAT much upside down.

The only real risk to me is if they are lying....and I dont include them in the BK (so I get the stay).....since I am already in default..the FC will be faster than if I had put them in the BK (since then they would need to get the stay lifted before FC).

SO, in the end it appears I am going to make my first payment on this new repayment plan in early May, then a couple days later file CH7 without including the mortgage.

I ll let everyone know how it goes...and of course am still open to other things I may have missed in this before I file in May!

[tobee43]

best of luck with it!

i'm certain you'll be just fine!!