We filed in 2007 and were discharged ch. 7 in Feb. 2008. Our 1st and 2nd mortgage were discharged in the Bk. We did not reaffirm them. We have lived in the home for 15 years and planned on just continuing to pay the 1st and 2nd. Things have been looking up for us. My husband was recently unemployed, but I have gone back to work, full time teaching. We are staring up our own company, real estate brokerage. We are hopeful that we will catch the wave when it comes back around. Anyway... Just found out that our second mortgage was a balloon payment and we owe the 71K on March 1st. We are current on our 1st and 2nd. Our home is about 150K negative equity. Not sure what to do, and if we stop making the payments, how long until forclosure sets in. Also , since they were both discharged with the BK will we get a forclosure on our credit report ?? UGH!!! Thought we were done with all of this!
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Filed 11/2007 Ch.7
Discharge 2/2008
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Can you afford to get a new loan on the 71k? If not they will start some form of collection action or foreclosure proceedings probably after 60-90 days or contact you about a loan mod. Also since you have a BK on your credit report it's probably trashed anyway. I don't think a foreclosure would make that much difference but that's a guess.Originally posted by upward View Post -
If you are that far underwater I'm not sure I would bother trying to refi the 2nd. In fact you would probally not be able to refi it. You have nothing to offer to secure the new loan.
Your were discharged and not reaffirmed so there would be no new record on your credit report. You are right on the bubble for maybe getting a new FHA home loan purchase and now is a good time to buy if you want too. The trick is if you try to buy after your get forclosed on then there is a seperate record of that for mortage brokers and they would deny you for a home loan. This does not affect any other aspect of your credit however.
As far as how long you have that depends on what state you are in. Odds are if you stopped paying now you would have at least 4-5 months before you had to move. Some states you could be looking at YEARS.3/2/09- Filed: chapter 7 / No asset
4/1/09- 341 Hearing: 1 creditor showed up
Got to love family feuds
4/2/09- Trustee Report of No Distribution Filed
6/24/09- Discharged and case closedComment
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If your house is worth less than what you owe on the first mortgage...second mortgage was a balloon payment and we owe the 71K on March 1st
1. Get a current market analysis from a Realtor (someone other than yourself).
2. Gather about $7,100.
3. Stop paying your 2nd mortgage
4. When they start calling, negotiate a settlement to have the 2nd mortgage remove its lien (for $7,100, or 10% of the balance owed).
See here for explanation of the strategy
Note, you cannot force the bank to settle, but if you are that upside down and since you filed bankruptcy, the bank with the 2nd only has a worthless foreclosure right.Comment
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We are in California. Seeing if the 2nd would settle is probably our best option. Never thought about that, but you are totally right, the 2nd is going to get nothing if they foreclose. Hmm, something to think about!Filed 11/2007 Ch.7
Discharge 2/2008Comment
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Hey Upward, wondering if you ever settled with the second on this matter?Comment
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Please do not revive old threads. The OP has not posted for 4 years and based on the most recent posts, decided to give up the home.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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