Biting the Bullet & Converting to 7

[Sammie]

Once again thank you for all the insight you have given us this past year.

We would have made it through our Ch. 13 if my husband's earnings had not been decreased. After seeing our Attorney last week and thinking of our options, we believe that converting to Ch 7 is our best option.

Our Attorney explained that since we are just at the max paying all 3 mortgages we are better off converting to a 7 in the event that we can no longer pay the 2nd & 3rd. He told us if we fail to make those payments while in a 13 the Mortgage Co.'s can come back after us for the outstanding amts. If we are in a 7 and default they cannot.

He told us that it is highly unlikely that the second & third lienholder (WF) would buy out the first, (Chase $70,000) & it might take a few yrs. to foreclose.

We are still hoping that we will be able to pay all 3 Mortgages in the Ch 7, but at least if we aren't able to it is comforting to know that they will not be able to collect later on.

I will let you know when we decide to get everything together and how it all progresses. Thank you all again for your invaluable help. sammie

[pamkev]

Sammie
Please keep us updated. Refresh my memory will you have to give up your home?

Pam

[Sammie]

Pam according to our Attorney if we can keep up with the current payments on the 3 Mortgages we can keep our home. If we stop paying the 2nd and 3rd he told us that WF would probably "not" foreclose until the first Mortgage (Chase) was minimal & then they would most likely buy the first and then start foreclosure proceedings.

I will keep you updated, thank you.sammie

[pamkev]

Okay that sounds good. I know we did not reaffirm our home and we just keeping up the payments which we always did. Never was behind on them Pam

[Sammie]

This is good to know, thank you Pam.sammie

[angel7821]

Best of luck to you Sammie.

[sophieanne]

Good luck with everything Sammie...i'm a strong believer in what is meant to be, will be and I believe this is a good move for you and your husband.

[TheBajan]

I'm also wishing you the best Sammie... please let us know how things go for you.

[frogger]

Don't refer to it as "biting the bullet". Refer to it as a wonderful fresh start on the zero payment plan.

Good luck.

[tobee43]

me too sammie, i hope i all works out just the way you want. remember tho, even if it doesn't it will ok!

[Sammie]

All of you are just great and I thank you very much.

I have been reading a lot the last few days and see why it is not in our best interest to "reaffirm". I am sure this is going to come up with our Attorney. I am going to check with the NC laws and see if it is mandatory to reaffirm. I will let everyone know when we start this process. sammie

[Greysky]

We just did a 7 and also did a stay and pay on our first and second. We made it a point not to reaffirm just in case things got even worse and we had to walk later on. Sound advice given from this site and our lawyer. We are current on everything. The only downside is it doesn't help our credit still making payments but whatever. Definitely more comfortable with not reaffirming.

[AngelinaCat]

Please keep us posted, especially with what your attorney has to day.