MI_Debtor
12-17-2007, 09:20 AM
Have any of you made less than interest only payments on your mortgage after discharge without the lender having a problem with it? I filed Ch7 in September. Today is the last day for objections and I'm keeping my fingers crossed that discharge and case closing will go smoothly.
I have an option ARM that allows me to pay less than interest only for the monthly payments if I choose to. Payments are up to date and I intend to keep living in the house and making my payment on time. I did not reaffirm the mortgage, mainly because the real estate market in SE Michigan is bad. I put $40K down on the house 2 years ago so there should still be enough equity to allow me to sell and pay off the amount owed. I realize that the negative amortization would eventually eat up all of my equity and I plan to start making interest only payments in the next few months. I just wonder if the lender will expect me to make payments high enough to at least cover the monthly interest after discharge. What if they just let me make minimum payments for a month or two and then start foreclosure. I am scared to call the lender about this until the discharge and case closing are done. Hopefully someone here has some experience with this.
I have an option ARM that allows me to pay less than interest only for the monthly payments if I choose to. Payments are up to date and I intend to keep living in the house and making my payment on time. I did not reaffirm the mortgage, mainly because the real estate market in SE Michigan is bad. I put $40K down on the house 2 years ago so there should still be enough equity to allow me to sell and pay off the amount owed. I realize that the negative amortization would eventually eat up all of my equity and I plan to start making interest only payments in the next few months. I just wonder if the lender will expect me to make payments high enough to at least cover the monthly interest after discharge. What if they just let me make minimum payments for a month or two and then start foreclosure. I am scared to call the lender about this until the discharge and case closing are done. Hopefully someone here has some experience with this.