Questions...

[Wineprincess]

Hello,
Havn't been her in a long while...

We are 3 years post BK, chapter 7. We never reaffirmed any of our loans, on our Truck, or house. However we kept paying on all of them to keep them.

Since we never reaffirmed any of these loans, and they were all listed in the BK, we just kept paying on them to keep them.

We recently went to apply for the HARP loan and when he pulled our credit report, he said that the loans we were still paying on are not reporting to the credit report.

Long story short, crap happens and my husband lost his job. We are upside down in our mortgage like 60,000 and everyone is telling us to just let the house go.

Since we never reaffirmed our house, can anyone tell me have you gone through this or what to expect?

Will this affect our credit being we never reaffirmed the mortgage?

Any idea what to expect in our situation on letting the house go?

I am not very saavy here with some of the lingo, it is hard for me to understand, so I need things in simple terms in answers please.

Thanks for help.
Wineprincess

[justbroke]

Since we never reaffirmed our house, can anyone tell me have you gone through this or what to expect?

It will proceed exactly like a normal foreclosure. You will stop paying the mortgage and then they will start sending you late notices. Eventually, they'll send a notice of default (NOD) demanding that you pay the past due amounts within 30 or more days "or else" they'll foreclose. I believe that Minnesota uses a "Mortgage" that may have a Power of Sale clause which would certainly speed up the foreclosure process. I don't know how long for Minnesota, but expect that it could be as few as 3 months from the first missed payment for the foreclosure process to start.

Will this affect our credit being we never reaffirmed the mortgage?

No. From experience, my credit does not show a foreclosure from one of my investment properties that was "surrendered" in the bankruptcy, but actually foreclosed 2.5 years after I filed!

Any idea what to expect in our situation on letting the house go?[/B]

Expect that the bank will first try to work with you, perhaps on a modification. If you can't afford the home and it's that far underwater, you should probably let it go. Stay as long as you can. Save up the money for your move, deposits, etc.

It may actually have been a GREAT thing that you didn't get that HARP loan!

[tobee43]

wineprincess, welcome back to the forum. i'm so sorry to hear about your situation.

now, and someone will correct me if i'm wrong, but if you never reaffirmed you never committed to anything with those outstanding loans. so really, most likely and concerning the fact that they are not getting reported to the credit agencies, (although one would think they would be showing as IIB?) i wouldn't think it would effect your credit that much at this point. it sounds and more many of us, credit is a huge issue for years after we close and our bk's are discharged. at this point since they are not reporting anyway and if theh loans where in fact included in the bk, my understanding is even if they did foreclose AFTER the bk it should not be listed on your credit report. although, i have heard from some that it was, however they proved to the agencies it was included in their bk and the foreclosure was removed in some instances i can't say all.

i have read other stories on the forum about those that never reaffirmed their mortgages and at a later time just stopped paying and staying until the banks foreclosed. it brought them some time and gave them an opportunity to save some money up. what ever is happening in your areas as far as how quickly the homes are being foreclosed on will tell you how long you may be able to pay and stay. in some cases of non-judicial states it's quick, in others that are judicial states it may takes years to begin the foreclosure process.

[Wineprincess]

Thank you so far with a lot of the answers here. I am still wanting everyone's input here to help me through what we are going through. God sure is throwing us a wrench in everything, but I have to believe there is a reason for it and have faith. Thanks again. Puts my mind at ease a little bit anyway. Keep the replies coming, helps us know that we are not alone and have hope!

[Wineprincess]

Tobee4, what is IIB?

[tobee43]

your most welcome and sorry i didn't see jb up there! IIB means Included In Bankrutpcy

[jst4f]

When your BK was discharged you mortgage became a non-recourse loan. The bank can not come after you to collect back payments...ever. Banks act a lot like bueararcies and "forget" that you filed BK and try to collect but it does not take much to stop that fast. Banks don't want to mess with BK judges.

Your BK gave you control over how to deal with your current situation. You decide what is best for you and your family and do it: walk or stay. Your choice and the banks then have to follow your lead. Best of luck

[Wineprincess]

When your BK was discharged you mortgage became a non-recourse loan. The bank can not come after you to collect back payments...ever. Banks act a lot like bueararcies and "forget" that you filed BK and try to collect but it does not take much to stop that fast. Banks don't want to mess with BK judges.

Your BK gave you control over how to deal with your current situation. You decide what is best for you and your family and do it: walk or stay. Your choice and the banks then have to follow your lead. Best of luck

So do you also agree that this will not affect our credit score?