Question on mortgage payment after discharge - extending payment?

[basketsbears]

Hi,

We were discharged last month & will close after our 2012 taxes are filed.

I have a question on our mortgage. We didn't reaffirm, and my husband would like me to call bank to see about "extending" the payment as I was paid for one 8 hour shift for the month of October. I am back to working like I had been, but it has made things extremely tight. I think I would just try and sell stuff and cut way back to make payment, but my husband wants me to call (house is in my name only).

My questions are: will they even talk to me since we didn't reaffirm? Is there any reason to extend, since we are not liable, and if we can make it up on our own within a month or 2? Are there any situations that we should avoid doing? I don't want to do anything that may make us liable again for the house, but not ready to move yet either. Also, if we did just make it up within a month or so, since this was discharged it wouldn't be reported on credit, and if we were able to extend payment that wouldn't help either right? It just seems like such a strange predicament.

Any thoughts are greatly appreciated. So thankful to be back working - just a bump in the road. Want to get emergency fund saved so we don't have this in future.

I wasn't sure where to post this - so sorry if I posted under wrong topic.

Thanks! Don't worry everyone - we are fine now!

Lynn

[HHM]

Not reaffirming only means ONE thing...if you walk away from the house (meaning, you let it go to foreclosure, short sell, or get the bank the agree to a deed in lieu) you are not liable for the any deficiency. That is ALL IT MEANS. Payments, late charges, interest, and all the mechanics of the note and the security interments (e.g. deed) are essentially intact after BK.

Understand. If your payment is due the 1st, you are in default on the 2nd. Yes, there is a grace period, usually 15 days. So, on the 16th day of the month, you are charged a late fee. If you cure by paying the due mortgage payment and the late charge, no harm, no foul.

They WILL talk to you, but they may not have anything to say to you that helps. You WILL not make yourself liable for the mortgage debt if you talk to them and work out any sort of temporary forbearance. Your credit report is irrelevant in this issue. The issue is keeping your house, apparently.

If the payment is going to be late, it is gong to be late, If you can pay BOTH the due mortgage payment and the late charge on day 29 of the month, not an issue.

[basketsbears]

Thanks! Yes we want to be able to pay it this month - maybe even before the 15th, but if not, wanted to know if we should talk with them??? So if I cannot pay this month, but am able to make two payments (with any late fees) in December is that something that most banks would accept? Or hopefully some type of arrangement. Just trying to do the right thing. I tried to call them today, but they were closed.

So I guess my question is - if they won't extend, and we do fall into December to make November's payment (which I hope won't happen) how quick would they go for foreclosure? and would they report the negative on our credit report? We are in Indiana.

Thanks!
Lynn

[HHM]

Correct, so long as you pay the amounts due (mortgage payment + any late charges), that will cure the default and you should be fine.

Generally, you will not get a notice of default until you are 30 days past due, and even if you get the notice, you usually given 30 days to cure.

[basketsbears]

Thanks! So if they won't work with us for some reason, and we can get everything paid within the following month - should be OK.

And it sounds like no negative reporting on our credit.

Thanks again for all your help!