thinking about letting house go

[BassBoy]

The bank has the right to file a judgement against you, or file a 1099 against you and make you pay taxes on the amount owed as a forgiveness of debt. If you are going to let the house go anyway, I would find an investor who will do a short sale contingent on no judgement against you, I think that would be your best bet.

Sean

My understanding is if the loan was discharged through Ch.7, but he continued to make payments (voluntary) and he has withdrawn the reaffirmation, he can just let it go without recourse.

[ddeennis]

My understanding is if the loan was discharged through Ch.7, but he continued to make payments (voluntary) and he has withdrawn the reaffirmation, he can just let it go without recourse.

thats what i thought and thats what i have been reading thru forums but i guess i wanted to see what you all thought about mine as well.

we know our loan is set for two years and then it goes to variable, we was planning to redo the loan before the two year mark. we sure will get a copy of the loan papers before signing to read thru it to make sure all is well since the closing title company seems to rush you thru the signings at closing.

we just found out today the house is ours, the appraisal came in at 90,000 and we our borrowing 84,000. the lender said it s a go and our close date was set for the 3rd. and the first time we saw the house was on the 12th of feb. and turned the loan papers in on the 13th. and offer on the 15th. moving really fast. the house is perfect.

[BassBoy]

I had to go back and read your origianal post because I had forgotten you had found another house. Is your interest currently 14%.....and it's 2 years before you can "re-write" the loan? If so, would this new loan be a lower interest and not a variable interest as well? The only advice or opinion I can offer to you is, if it's the right deal (don't forget to read EVERYTHING), then go with your gut.

Best of luck to you and keep us posted.

[Jenny]

It sounds like a no-doc loan. Those are a lot more expense than regular mortgages. Know what you're getting into before you sign.

[seanpwarren]

I think that even with voluntary payments, it depends if the property value dropped since the bankruptcy, which it may have. The bank forgave the debt up to the bankruptcy, but if they can get less money now that debt has increased, and I think they have the right to hit you because of it because you extended the loan. I am not a lawyer, but that was my understanding

[Jenny]

seanpwarren:
You joined today, and made 7 posts about mortgages. This one sounds particularly fishy. I've never heard of someone owing on a discharged mortgage because the property valued dropped.

[SinkingFast]

seanpwarren:
You joined today, and made 7 posts about mortgages. This one sounds particularly fishy. I've never heard of someone owing on a discharged mortgage because the property valued dropped.

Maybe he's on pain meds!! LOLOL

[seanpwarren]

Sorry I'm stuck in Tucson on business and bored, and really trying to learn as much about foreclosure as I can, just trying to share what I already know while I'm here. You are probably right, I'll stop posting since I'm not actually in foreclosure. Sorry to anyone I bothered.

[SinkingFast]

I think that even with voluntary payments, it depends if the property value dropped since the bankruptcy, which it may have. The bank forgave the debt up to the bankruptcy, but if they can get less money now that debt has increased, and I think they have the right to hit you because of it because you extended the loan. I am not a lawyer, but that was my understanding

If a filer includes their home in there list of Creditors and Debt when filing BK, the mortgage gets discharged with all the other debt. Just like a CC or car loan, or any other debt.

After BK, the mortgage lender has to Foreclose in order to lay claim to the deed to resell the house. Just because the lender incurs costs to do that does not mean the BK filer gets hit for the extra. If property values decrease during the BK process, the BK filer doesn't get hit for the deficit. Once the BK is discharged and closed, the BK filer has no more responsibility for the debt.

[ddeennis]

thanks for the replys all, this has been some useful information here, the loan we are getting is sure way less. it my not be the lowest rate but we are happy with 8.5% and we will redo are loan sometime before the two year mark.

I was kinda hoping i could walk away from this house here we are in because it has not been the best place to live and its sad that i'm not happy in here because its just not the right house to have.

im so much happier with new house and it will be very worthy to live in and take care of with pride.

[BassBoy]

That's great news ddeennis. I wish you the best and good luck.

[BassBoy]

Sorry I'm stuck in Tucson on business and bored, and really trying to learn as much about foreclosure as I can, just trying to share what I already know while I'm here. You are probably right, I'll stop posting since I'm not actually in foreclosure. Sorry to anyone I bothered.

Don't be silly. You're not "bothering" us. I'm sure most will agree that we invite others to share what they know. Although be prepared for us to rebutt because most of us have searched for that one answer that would keep us from filing BK and losing our homes.......so........we know a thing or two about how it works.

[keepmine]

Call your bk lawyer and get a copy of the letter you signed revoking the reaffirmation.
If you revoked the agreement, you are not responsible for any deficiency balance.