We filed Chapter 7 2 years ago and did not reaffirm the homeloan. Times became tough and we fell behind on the mortgage. The mortgage company would not take "partial payments", so we decided to let the house go. My attorney did not want us to reaffirm the house at the time of the BK stating that if anything happened, we would have the protection of the BK. What did he mean by that? We do have a 2nd on the home prior to the BK. Since we stopped paying,(5 months), we have not received any letters. We called the mortage company, and they tell us that the home is not in foreclosure yet. My question is, will I be liable for any of the 2nd? I also have a rental lined up, but am unsure of the timeline of the foreclosure process. We live in Colorado if that helps. Thanks!
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You will lose the house in foreclosure, but you will not be liable for any possible deficiency balance (the difference between what is owed and what the home is worth) that may be due the 1st or 2nd mortgage if the house does not sell for enough at auction to settle both accounts. -
Our plan is to get into a rental with a rent-to-own option, in the meantime, work very hard at getting reestablished (creditwise) and try to buy a home after 2 years unless I get a "good deal" on the current rental. I have already found a nice rental for my family and am moving forward on it so I will not have to "hurry" when I get the notice to move out.
Talk about trying times!!!!! I sure hope there is a little bit of light at the end of the tunnel!Comment
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Stitch, I am going thru the same thing, and was wondering.. Was it difficult to find a rental??Comment
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Read this thread: http://bkforum.com/showthread.php?t=2087 There may be some great information for you that you can use when shopping for a rental property/apartment.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.Comment
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Not hard at all, I however was completely honest with the renter, explained my situation, and told her my intentions on how I would maintain the place. She was very happy how honest I was and even offered that if I wanted a 2 year lease. I will think about that one, but will be very careful financially as I would like to buy another home after the lease is up. I may actually buy the home that I will be renting.Originally posted by MER View PostComment
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