What kind of Modification did ur back offer?

[2muchinDebt]

We are waiting to hear back from Chase/WAMU about a modification. We submitted it like the day after it was announced. (Actually, we were already in their system and they FedExed it ti us right away.)

Since the cram down bill failed in the Senate this is our only other hope to hang on to our house. What was offered if anything to you?

It's been a month and they told us 60-90 days.

Just curious if anyone heard anything about their modifications.

[ShouldWeFile]

This thread is likely more appropriate for another subcategory (foreclosures perhaps).

In any case, we are in IL, and a judgement of default has been entered against us (the borrowers), and the home is scheduled for sale in mid August.

We are approx one month into a workout and still just waiting, every time we call they state the packet is complete and a decision will be made prior to the scheduled sale date... a lot of help that does us. They tell us up to 60-90 days also, but also tell us that priority is given to those homeowners who are in foreclosure and have a scheduled sale date...

So we play the waiting game.

Our plan is to (hopefully) workout the first, settle on the second, and file a chapter 7 to eliminate all of the unsecured debt after that (assuming all goes as planned.

If there is a glitch in the plan somewhere (most likely a failure to recast and/or workout the 1st mortgage), we likely will file a chapter 13 in an attempt to save the home...

Walking away from the home is not a bad option for us at this time also, and if we chose to do so, the upcoming months will be the right time to do it.

[2muchinDebt]

I hate the waiting game! Grr. Now that the Senate did not pass the cram down bill, we have to wait from the mortgage people. We are not in imminent danger of losing our home to foreclosure. Our loan will re-set in about 3.5 yrs. But we can barely afford the interest only payment. I can't find a job anywhere right now. I keep putting out resume's and trying even Target, grocery stores...to no avail.

If the mortgage co. does workout something for us then we could file a Ch. 7 maybe and just reaffirm the house (and our small Disney timeshare). Then we'd have to get caught up on the HELOC though.

Currently, our lawyer has us waiting to do a CH13 because of the cram down, but why do that now since it didn't pass? We wouldn't have to sell everything off in a CH7 would we?

[ShouldWeFile]

Funny you mention your DVC - that is the one asset of ours I wonder if the trustee might want to try and sell if we end up doing a ch7...

There are exemptions that vary by state in a chapter 7... if you are within the exemptions, and the trustee is satisfied with that, than your case would be determined to be a no asset case and the discharge would soon follow. If, by the trustee's definition, you are determined to have assets, then you must work with the trustee, through your attorney, on how to satisfy the trustee / federal bankruptcy court hopefully allowing your chapter 7 to proceed to discharge (often involving monies and/or liquidating assets).

[2muchinDebt]

The only asset we have left is the DVC. It's probably worth $14400, but we can use $10,000 in exemption on it (house is underwater). We are putting it up for sale asap to pay for the mortgage the next few months. I'm pretty sure most everything is within the exemptions. We do have a small DVC contract of 50 points that we pay $61/mo on. I want to keep that. I can't imagine not going. We'll stay in a studio instead of a 1 bdr and I just got a Cusinart Gourmet Griddler at a great deal at Costco to use in the room for lunches or dinner. Just can't afford the parks.

For us $10,000 of the $14,400 DVC would be exempt and the lawyer told us that they probably wouldn't pursue selling it for the difference and the hassle..yada yada yada. If you can't claim an exemption on the DVC I have a feeling they will take it.

[ShouldWeFile]

The only asset we have left is the DVC. It's probably worth $14400, but we can use $10,000 in exemption on it (house is underwater).

How many points, and what resort? The only reason I ask, is that some are reporting that values are decreasing somewhat with DVC also, and therefore, it may make sense for you to research that. But I suppose that is irrelevant if you are definitely selling - you will discover the TRUE market value when you sell! We paid around $15000 for 160 points @ SSR about 4 years ago - it's worth about $11000 now - and probably less as all of the points are stripped until Jun 2010. Still not bad compared to typical resale values of timeshares.

I intend ask my attorney to deduct closing costs ($450 - which are typically seller paid), and also 12% for sales commissions (this is the going rate from The Timeshare Store) from the estimated value when I list the value in the BK. We still owe about $3500 so, we should be able to exempt it.