Is that a presumed reaffirmation? Can I just 'walk away' in a year or 2 if I want/need to? Do the original terms of the loan apply? I'm in an ARM that will be increasing in 10/07. I HATE the thought of moving & renting and if I could wipe out my CC debt then I could hold onto the house....UNLESS the ARM starts increasing.
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If you don't sign a reaffirmation agreement, as long as you make the mortgage payments on time, the mortgage company can't foreclose. If you decide to walk away when the ARM kicks in next year, then if you stop paying, the foreclosure will start in motion just like it would if you stopped paying now.Originally posted by matthewsmom View PostI am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to go -
You'll want to read up on your State's Foreclosure Laws so you know what to expect.
Will it go quick? You miss the payment, the Lender demands Cure of Default, and within 60-90 days the Sheriff's sale happens.
Or, will it be a judicial process that takes 12-18 months or longer.
Is there a Redemption period and if so, how long? Or does the owner even have a right to Redeem the property.
Things you need to know. Partly so you can time things, if and when you need to. And partly because of your own personal liability. Until the Deed/Title actually moves from you name to someone elses, you are liable for the property. If someone slips on the sidewalk, steps in a hole in the yard and twists an ankle, that kind of thing.
Also, do you know the basis for your interest rate on the loan. And the add on. Like you pay the T-Bill rate plus 5 points. If you have that info, you can track the base either in your newspaper or online. You'll have a good idea if the rate is headed upward based on what you're paying now. Help you plan what to do.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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You may want to look at your note so you can get an idea of what changes are coming down the pike next year in your payment. Knowing that now will help you make your decisions and get a plan in place, rather than be surprised next October.
My house is currently in voluntary bankruptcy foreclosure, however, just to re-affirm my own feelings about my decision, I got my note out yesterday and calculated what my payment would have been had I stayed in the house and my payment was scheduled to increase by $1,000 per month!!!!!
That's $1,000 in addition to the payment I was already making. That's an additional $250 per week!!!!!
Yep, I signed the note; yep, it was predatory lending; yep, I was desperate to avoid BK and save my house; yep, it was the only loan I could get with $130,000 of open unsecured debt (at the time of the refi). In the end, I decided that even with the rest of the debt discharged, I still couldn't afford my home.
So, I decided that my fresh start would equal being debt free for me, completely! It was a heart wrenching decision to make, but I made it, and guess what? There is life after homeownership
Good luck to you. SinkingFast & LRPN have given you EXCELLENT advice.Comment
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