New here & a question about Ch. 7 and Foreclosure (not reaffirmed?)

[momof4girls]

Hi This is my first post, and I'm hoping to get some much needed help! If I don't do things "correctly", blame it on my newbie status.

My husband and I had a Chapter 7 discharged in December of '09. At the time, we told our attny that we wanted to keep our car and house. I guess we were saying we wanted to reaffirm it? We did not sign anything though, and when I pulled my credit report last night, I did not see the mortgage on it (nor the car loan for that matter, although we have since completed that loan). So I went ahead and pulled my report from all three major companies, and the only company that even showed the mortgage, showed it as a $0 balance.

So does that mean the mortgage wasn't technically reaffirmed? I ask because my husband's hours were cut back even more (they were cut last year which is how the BK came to be) recently, and soon I fear we will start to fall behind on our mortgage payment. Are we going to be able to walk away without any legal responsibility?

And just curious...how many missed payments does it take before you are kicked out of your house?

Thank you for any help you can provide!

[drowning123]

Welcome momof4girls. You did not sign a re-affirmation agreement, which is a good thing. This means you can walk away from the house without owing anything. You are currently on a ride-through, which means you are paying without obligation. You can walk away at any time. You're one of the lucky ones. You may only need to miss one payment for the bank to come-a-calling. I don't know why people ride through when it doesn't help their credit. As for your $0 balance, it wouldn't be reported on your credit report unless you made some sort of arrangement with the creditor.

[momof4girls]

Welcome momof4girls. You did not sign a re-affirmation agreement, which is a good thing. This means you can walk away from the house without owing anything. You are currently on a ride-through, which means you are paying without obligation. You can walk away at any time. You're one of the lucky ones. You may only need to miss one payment for the bank to come-a-calling. I don't know why people ride through when it doesn't help their credit. As for your $0 balance, it wouldn't be reported on your credit report unless you made some sort of arrangement with the creditor.

Very true! We were late on our payment a couple months ago (first late payment ever), and they called only like three days after it was late. I assume that is because they know that we could stop paying at any moment, so they are more careful to watch our late payments? So am I correct in saying that if we made our payments for the next two years, it wouldn't be on our credit report? As in we would get no credit for all those timely payments?

[tobee43]

Welcome momof4girls. You did not sign a re-affirmation agreement, which is a good thing. This means you can walk away from the house without owing anything. You are currently on a ride-through, which means you are paying without obligation. You can walk away at any time. You're one of the lucky ones. You may only need to miss one payment for the bank to come-a-calling. I don't know why people ride through when it doesn't help their credit. As for your $0 balance, it wouldn't be reported on your credit report unless you made some sort of arrangement with the creditor.

ditto!! you had an excellent atty and knew what they were doing and protected you!! wow...that's refreshing!!

ok...here's what i suggest...you need to look at the petition itself to make certain you did not reaffirm...and if you didn't you are in good shape...except for one glitch.....that could cause you some complications but you'd be in the right...and that is if your a deficiency state and they have to foreclose and attempt to go after you for the fees, cost and deficiency between your mortgage and what the bank eventually sells your house for after the foreclosure.

now...if the mortgage was discharged you have the "ride through" however, they, the bank, still may attempt to go after you for these costs...but you'll be fine provided all the criteria have been met and you have proof of the discharged mortgage.

[ccsjoe]

Very true! We were late on our payment a couple months ago (first late payment ever), and they called only like three days after it was late. I assume that is because they know that we could stop paying at any moment, so they are more careful to watch our late payments? So am I correct in saying that if we made our payments for the next two years, it wouldn't be on our credit report? As in we would get no credit for all those timely payments?

Yup, you got it 100% unequivocally absolutely right! (Sorry, watching Tinkerbell with my daughter first thing in the morning does wonders for my mood).

[tobee43]

Yup, you got it 100% unequivocally absolutely right! (Sorry, watching Tinkerbell with my daughter first thing in the morning does wonders for my mood).

joe...i never heard the words unequivocally in tinkerbell...did i miss a scene...which movie?? after all there are at least 3. LOL!!! you are too funny!! and sweet to watch it with her...

[momof4girls]

ditto!! you had an excellent atty and knew what they were doing and protected you!! wow...that's refreshing!!

ok...here's what i suggest...you need to look at the petition itself to make certain you did not reaffirm...and if you didn't you are in good shape...except for one glitch.....that could cause you some complications but you'd be in the right...and that is if your a deficiency state and they have to foreclose and attempt to go after you for the fees, cost and deficiency between your mortgage and what the bank eventually sells your house for after the foreclosure.

now...if the mortgage was discharged you have the "ride through" however, they, the bank, still may attempt to go after you for these costs...but you'll be fine provided all the criteria have been met and you have proof of the discharged mortgage.

I looked at the petition last night, and I'm not sure what I'm looking for? Is there a certain paper that should be included? We make our payments to BOA, but I believe our loan is actually under another name. I assume that means it was sold to them? I got this notice in my inbox at BOA, does this mean it was not reaffirmed?

Our records indicate that in the past you received a discharge of this debt in a bankruptcy case. Section 524 of the Bankruptcy Code tells us the discharge of this debt means you have no personal obligation to repay it. The discharge also protects you from any efforts by anyone to collect this discharged debt as a personal liability of the debtor. You cannot be pressured to repay this debt. On the other hand, the security agreement allows foreclosure if the requirements under the loan documents are not met. This quick summary is not intended as legal advice. You should consult with your own advisors if you have legal questions about your rights.

In Missouri, according to what I've read online, we are a non-deficiency state.

[ccsjoe]

I believe Fairy Mary used the term in the second movie.

[drowning123]

Our records indicate that in the past you received a discharge of this debt in a bankruptcy case. Section 524 of the Bankruptcy Code tells us the discharge of this debt means you have no personal obligation to repay it. The discharge also protects you from any efforts by anyone to collect this discharged debt as a personal liability of the debtor. You cannot be pressured to repay this debt. On the other hand, the security agreement allows foreclosure if the requirements under the loan documents are not met. This quick summary is not intended as legal advice. You should consult with your own advisors if you have legal questions about your rights.

In Missouri, according to what I've read online, we are a non-deficiency state.[/QUOTE]


You're in the clear! Congrats! I guess. "I like it when a plan comes together." The A-Team.

[momof4girls]

Oh what a relief. But I don't think we have the same timeline of non-payments as lots of other people on this board seem to have. I doubt we could not pay for 6 months and still remain in this house? Too bad we did not think to vacate our house back when the BK was discharged. It has not even been a year, and already we can't afford it.

[AlmostAmos]

Well, with the current housing market - you may have MONTHS or YEARS to stay in your house w/o paying. I would site tight and not leave until it is foreclosed on & you get a notice from the new owner. Start saving your $ now so you can rent a place. There are members here who haven't paid their mortgages for 2 years...

[tobee43]

I looked at the petition last night, and I'm not sure what I'm looking for? Is there a certain paper that should be included? We make our payments to BOA, but I believe our loan is actually under another name. I assume that means it was sold to them? I got this notice in my inbox at BOA, does this mean it was not reaffirmed?

Our records indicate that in the past you received a discharge of this debt in a bankruptcy case. Section 524 of the Bankruptcy Code tells us the discharge of this debt means you have no personal obligation to repay it. The discharge also protects you from any efforts by anyone to collect this discharged debt as a personal liability of the debtor. You cannot be pressured to repay this debt. On the other hand, the security agreement allows foreclosure if the requirements under the loan documents are not met. This quick summary is not intended as legal advice. You should consult with your own advisors if you have legal questions about your rights.

In Missouri, according to what I've read online, we are a non-deficiency state.

you are looking for your "statement of intention" in your petition (located after all you schedules)...that will list the property and the address and then there will be a box that is checked...it varies from state to state but generally it will have checked one of the following:

two boxes one: surrendering and the other retained it will also asked if the property is claimed as exempt or not...then it will have little boxes saying:

redeem the property
reaffirm the debt
other

[tobee43]

I believe Fairy Mary used the term in the second movie.

ok...well that's the problem then...i know the first movie well...and the new third one...just got the second one and haven't watched it yet!! fairy mary...thanks i'll be on the look out...

[tobee43]

I looked at the petition last night, and I'm not sure what I'm looking for? Is there a certain paper that should be included? We make our payments to BOA, but I believe our loan is actually under another name. I assume that means it was sold to them? I got this notice in my inbox at BOA, does this mean it was not reaffirmed?

Our records indicate that in the past you received a discharge of this debt in a bankruptcy case. Section 524 of the Bankruptcy Code tells us the discharge of this debt means you have no personal obligation to repay it. The discharge also protects you from any efforts by anyone to collect this discharged debt as a personal liability of the debtor. You cannot be pressured to repay this debt. On the other hand, the security agreement allows foreclosure if the requirements under the loan documents are not met. This quick summary is not intended as legal advice. You should consult with your own advisors if you have legal questions about your rights.

In Missouri, according to what I've read online, we are a non-deficiency state.

this IS good news...but just check the petition anyway...are you drafting what you have in red from your discharge??? if so and your mortgage is listed and you didn't reaffirm, one would think you are in the clear!

[CCsAreEvil]

And just curious...how many missed payments does it take before you are kicked out of your house?

Usually, they'll do a Notice of Default around the 90 day late mark (3rd late payment). It could be much longer, too. It depends on your lender. Absolute minimum should be 90 days from your 1st missed month payment. From there, could be 1+ years, especially if your state has a redemption period and judicial vs non-judicial mortgage loan.