Can anyone tell me how this would work?

[cannet]

We filed chapter 7 5/08 discharged in 9/08. Unfortantly my husband is in the manufacturing field and his company was hit hard. He had to take a pay cut around when we were discharged and was laid off from 1/09- 8/09.
We were unable to keep up w/ our house which was not reafirmed. They had us do several rounds of trial payments and payment plans before we were finaly approved for our modification 5/10.
Last month 9/10 I missed our payment, planning on catching up this month and making double payments, well the day I was going to make the payment we recieved a letter saying the 2 payment were due plus late fees (2418) the late fees had something to do with them not being able to roll it with the modification, because this is the 1st time we were late since the mod.
They want the money just under $5000 in certified funds by 11/2/10. or they will start acceleration.
My question is this since the house was never reaffirmed will it still show under bk or will it be a forecloser? We are not able to rent because we have more kids then what renters would like, I know it is horrible but if it doesnt show on his credit report would we be able to buy another house, saving as much money as possible while we can still stay here would give us a decent down payment and houses have taken such a hit here that we could find a decent one for less than $50,000. Also if wells fargo won't work w/ us at mediation how long do you generaly have before you have to move?

[keepinitreal]

It will still be a foreclosure on your credit report. You just won't be personally liable for any deficiency.

[tobee43]

since most banks are halting all foreclosure actions for the time being..or until paperwork it straighten out, you would not be thrown out anytime soon....actually either way.

we got served over 2 years ago by chase...they still haven't foreclosed and we did vacate and did surrender in the bankruptcy.

the fact that you did not reaffirm is good...it will mean more than likely the mortgage was discharged ....i would likely think the bank would rather work with you than put your house in the twilight zone pile of "to be foreclosed" sitting somewhere in nowhere land.

i understand what you say about renting, it's difficult...we left our house after 33 years and downsized to beyond what i thought possible...but ONE huge factor...our kids were no longer living with us. that does change one's perspective and makes the situation more complex for you.

you'd be surprised... if i were you...and you had enough...i'd stop paying and start looking about for a rental...you may be surprised in what you fine for half the amount you are paying on your depreciating house. i understand it is indeed a difficult decision...but you must attempt to put your emotionals aside and do what is the best SOUND business decision for you and yours.

good luck...and depending on where you live it could take them over 2 years or as quick as 90 days to get you out. check your local shreiff's site to see how quickly they are moving in your area. it will give you an overview of what's really happening in your area.

best of luck and keep us posted!!