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    #1

    Too soon to stop paying?

    We currently live in MA, and I currently have a mortgage with Citimortgage that was included in a Ch 7 bankruptcy 3.5 yrs ago (not reaffirmed). Our family has decided to relocate to Nashville prob in June\July, due to a better job opportunity. Since we didn't reaffirm we are going to take advantage of BK and walk away from the house. Is it too early to stop making my mortgage payment now, given thay we are still 4-5 months away from moving?I want to save as much money as possible ahead of time so that we can pay first & last month rent plus deposit whenever we find our new home in Nashville. But I obviously don't want to get booted out in the mean time.

    If I stop now and few months down the road for whatever reason plans change and we end up having to stay, I should be able to have the chance to bring the loan current, correct? And since I didn't reaffirm and it was IIB, can Citimortgage still tack on attorney fees?


    Thanks!
    Filed Ch 7 - 07/10/08
    341 Meeting - 08/13/08
    DISCHARGED! - 10/15/08
    CLOSED - 10/20/08
    Tags: None
    #2
    Absolutely, quit paying them right now. I have a 450k mortgage w/ Citi and haven't paid them 1 cent in over 2 years now. They will NOT foreclose. Our BK 7 was discharged about 16 months ago. I call Citi about once a week asking them to foreclose - they have no interest in doing so. We moved out a year ago & finally put it on the market last week to short sale it. We're sick of paying HOA fees.
    Stopped paying CCs 1/10 | Stopped paying mortgages 2/10 | Interviewed attorneys 3/10-5/10 | Retained attorney 5/14/10 | Delivered paperwork to attorney 6/17/10 | Filed Ch7 7/9/10 | 341 8/16/10 | Objection Deadline 10/15/10 | DISCHARGED 10/20/10

    Comment

      #3
      Thanks AlmostAmos!

      Anyone have any insight on whether or not a lender can tack on attorney fees which I would be forced to pay in the event I need to reinstate the loan, or am I shielded from that because of the BK?
      Filed Ch 7 - 07/10/08
      341 Meeting - 08/13/08
      DISCHARGED! - 10/15/08
      CLOSED - 10/20/08

      Comment

        #4
        Originally posted by laurannm View Post
        Thanks AlmostAmos!

        Anyone have any insight on whether or not a lender can tack on attorney fees which I would be forced to pay in the event I need to reinstate the loan, or am I shielded from that because of the BK?
        If you later decide to stay and want to prevent bring the mortgage current, in order to prevent foreclosure you will have to pay interest, penalties and whatever fees are allowed under the terms of the orignal mortgage, which probably includes attorney fees.

        If you walk away as planned, they can't charge you for their attorney fees.
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

        Comment

          #5
          Thanks Lady!

          Right after I posted this though, I was doing some research and discovered that Massachusetts passed a 150-day Right to Cure law back in 2010 that prohibits lenders from tacking on any fees (other than interest and standard late fees) during that right to cure period. So sounds like I would be in the clear in the event I need to reinstate
          Filed Ch 7 - 07/10/08
          341 Meeting - 08/13/08
          DISCHARGED! - 10/15/08
          CLOSED - 10/20/08

          Comment

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