When to stop paying mortgage...

[jwsmartin]

We are going to include our home in a chp 7 with signing in december. We have yet to pay nov payments (1st and 2nd mortgage). In talking with lawyer about whether we should pay or not, he said "It's like swimming downstream, then trying to swim back up" No definite answer, so I was wondering if I should stop paying now or continue to pay until jan. We could probably afford the payment, but it would be very tight!

Thanks

[oldbaddebts]

If you intend to give up the home in the ch 7, I wouldn't make any further payments, however I save however much you are allowed to exempt, and the spend on necessities until you file. After you file, save as much as you can of the money you would be paying on the 2 mortgages so that when it's time to move, you have something. The time to plan for your "fresh start" is the same time you decide to seek one.

[SinkingFast]

Generally speaking,............ Mortgage Lenders move toward Foreclosure after 2 or 3 missed payments.

Our Notice of Default and Acceleration was sent out the day after the Grace Period of our 2nd missed payment lapsed.

If you're really gonna file soon and surrender the house in BK,........ Making this mortgage payment would be like pouring water in a well. You'd do just as good to get cash, take the cash out in the back yard, and build a bonfire with the dollar bills.

[demismom]

We stopped paying in February of 2007, hired an attorney asap, filed in June and the house sold at Tax sale on September 20th. I'd think you'd be fine to stop paying. I'm in Michigan and we surrendured our home in a Chapter 7.

[jwsmartin]

Thanks for all the information.