Sheriff sale in 3 weeks...Bank calling with options

[Toby629]

Our Chapter 7 BK discharged March 2011, we surrendered house in the BK. Got notice of Sheriff sale for Oct. 17. We planned on staying in house till we have to go, DH lost his good job in 2007, hence eventual BK. He has been underemployed for 2 yr. and just landed a great job starting in October! Have been looking for rentals in our area and all say NO PETS, we have one dog and one cat and giving them up is not an option. Plus we have to have a one story house as I have residual effects from a serious car accident a few years ago, our home now is a ranch style. The house is underwater by $60K and needs some upgrades and repairs. Got a call from PNC on our voice mail tonight saying they want a call back as they have options for keeping our current home. We never contacted them at all for any loan mod and with the Sheriff sale already set, we are surprised they are contacting us. Anyone have ideas as to what kind of options they may be offering? We would only be interested if they were to modify the total amount of the mortgage obviously, as it is 60K over what it is worth now. Wow, they must be desperate! We live in a very depressed county and I know homes are not moving here. We have not made a payment since May 2009.

[AngelinaCatHub]

I have no way to predict the future. It is always worth your time to listen. No matter what condition your home is in, it is a house and probably will not just fall down. If you can get a reduced pay off, and low payments with past payments forgiven, that would be good. Avoid signing any kind of new mortgage as you cannot 'walk away' then. Be real careful. Realize, if they "forgive" an amount, you may get a 1099 to pay a tax on that as income. Best wishes. 'Hub

[Toby629]

Thanks Hub, that's very good insight and advice. We will certainly "listen" to what they are offering, but you are right on that balance must be lowered, low payments and that past payments must be forgiven (never thought of that, very good!). IF it is decent DH and I are going to discuss the offer with our BK lawyer, he was wonderful and very caring and has even sent a letter recently if we have any questions on the foreclosure to contact him.