Stackin up Mortgage Money after BK

[majicman50]

We were dischaged from a chapter 7 last Oct and wanted to keep the house. By reaffirmation time we realized we were 181% loan to value. No way were we gonna keep that mess. So we opted to stay just making the payments as usual until we figured out what to do. The mortage co has no problems taking our money since we pay in full on time. We want to eventually move to a nice apt but it's hard to save money with the existing outlay on our current mortgage. How long will Citi Mortgage let us stay if we stop paying them and will there be a negative credit situation from that since the loan was not reaffirmed? We are in Missouri...Help....what are the best options in this situation???

[zpbk13]

I am not sure what the best options are in your situation but I can share what me and my husband are doing. He lost his job about 8 months ago. We were paying the mortgage with difficulty until April of this year when we stopped. We have BOA and we have not heard a word from them. At 91 days late I called them and they told me we qualified for a loan modification but could not give me the details over the phone. Supposedly they are mailing us the packet and they said it could take 2-3 weeks. I will be calling next week if we don't have the papers by then.

Unfortunately, we are not in a position to save much right now but we are putting a little away each month. I am hopeful that the mod amount will be reasonable and we will continue to stay in our home. If not, we will wait it out. I have a relative that was in her house for over 2 years and an acquaintence that was in her house for about the same period of time. We are in Ohio, if that helps. You can google the foreclosure timeline for your state. I did that and found out the timeline is supposed to be 6-8 months but again I know two people who stayed in their homes much longer. It's a gamble for sure as to how long you would have but I am hopeful that if our mod does not work out, we will have at least 6-9 months from the complaint being filed.

I hope I was helpful!

[HHM]

Good choice on surrendering the house, 181% LTV, that is a financial disaster.

With a few quick google searches, it appears foreclosure in Missouri takes about 6 months. (realistically, probably longer).

Realize, the bank won't even start the process until you 3-4 payments behind, then it will be another 3-6 months from there.

You can live in the house (rent free) until the actual auction sale date. So you should have PLENTY of time to save for a move.

[ryan]

Lenders can be quite something to work with on a modification. Don't be surprised if you never receive the packet and have to call and request it again. (and again)...as you probably know most modifications are either temporary or don't go thru at all.

Some of the 'modifications' lenders proposes include Deed In Lieu, (w/ a cash for keys deal) and also short sales. Permanent payment modifications are the hardest to get.
Keep in mind all the modification talk with them does not stop the clock once a FC suit is filed.

[Billssuck]

I too live in Missouri. I stopped paying my mortgages with BoA for my HELOC in April and May for my first mortgage...I haven't heard a peep out of them yet. I am in an active ch13 so they must lift the automatic stay first before communicating with me.

We modified our ch13 to surrender our house after my husband lost his job last October. We're not too far under market value for our house with what we owe, but my husband now has a new job making $1,000 less per month and we can not afford the monthly payments and no mod out there is gonna reduce our payments by half. These past two months, I have been able to save a few thousand dollars and from what others wrote above, I may be able to save quite a bit more. I am fortunate in that I have a relative who owns rental properties so I am able to rent a place easily once we're required to move. I too hope that I can stay here long enough to save money for whatever lies ahead with regards to moving and other unplanned events.

Good luck in whatever you decide to do!