New Guy

[DM1]

Hi Everyone, My Name Is Daniel And I'm 34 Years Old From California. I Just Found Your Forums And I'm Fileing For Chapter 7. Forgive Me If Someone Has Asked These Questions, I Don't Even Have Time To Look At The Other Threads. Ok Here Is My Problem: We Got This Adjustable Rate Loan About Two Years Ago And Were Paying About 1000k For Mortgage A Month, And Now It Tripled To 3200k A Month. We Owe 397k On Our First, And 60k On Our Second And 70 K Worth Of Credit Cards And A Car Loan. Our Lender Wants To See Us Get Rid Of The 70k Of Credit Cards In Order For Them To Consider Reducing The Payment And Possibly Getting Into A 30 Yr Fixed With A 5 To 6% Interest. We Were Never Late On Our Credit Cards, Just Our Mortgage. We Are Not Paying Mortgage Right Now Because We Were Advised Not To By Our Lawyer, Besides We Can't Afford It! Anyhow, We Are Doing The Chapter 7! We Just Got All The Paper Work To Fill Out. I Don't Know How It All Works And We Hired A Bk Lawyer To Help Us With That. After Signing For That Bum Loan, I 'm Affraid To Sign Anything. I'm Worried That They Will Take Everything We Have. I Want To Try To Save The Car We're Are Financeing, Our Lawyer Told Us That We Have A Straight Forward Case. I Have Nothing To Hide And I'm Listing Everything Of Value. What Will Happen As Far As Future Purposes,audits,court Etc. Again Our Lender Wants That Debt Gone, So We Are Doing All Of This To Save Our Home. Our Credit Scores Were In The 780's Before All Of This Happened. Is It Wrong For Us To Give Up Our Credit Cards Like That? What Are The Do's And Don'ts In This Situation. There Is Alot More To This, I Don't Want To Bore You Guys Any More. Thanks

[WhatMoney]

Is this part of the government's new homeowner bailout program? You may be for real, but troll alert in progress.

[DM1]

Wow, A Bk Comedian! Thanks For Your Help

[lrprn]

First, Daniel - please.....the every-word capitals are making it very difficult to read your post. Also an occasional paragraph never hurt anyone

Hi Everyone, My Name Is Daniel And I'm 34 Years Old From California. I Just Found Your Forums And I'm Fileing For Chapter 7. Forgive Me If Someone Has Asked These Questions, I Don't Even Have Time To Look At The Other Threads.

To be successful filing Ch 7, you need to make the time to learn everything you can before making the jump. Ch 7 is a last resort - not a quick solution to your financial problems. It's going to affect you and your family for years to come.

We Got This Adjustable Rate Loan About Two Years Ago And Were Paying About 1000k For Mortgage A Month, And Now It Tripled To 3200k A Month. We Owe 397k On Our First, And 60k On Our Second And 70 K Worth Of Credit Cards And A Car Loan. Our Lender Wants To See Us Get Rid Of The 70k Of Credit Cards In Order For Them To Consider Reducing The Payment And Possibly Getting Into A 30 Yr Fixed With A 5 To 6% Interest.

Daniel, there is a good chance that no mortgage lender (including your own) is going to touch you for a refi for about two years after you file bankruptcy. You are making desperate decisions here. It's quite possible that your lender is dangling this refi in front of you to get you to pay the current arrears on your mortgage. Lenders are not your friend in these situations.

Also a warning - you CANNOT be behind on your mortgage when you file Ch 7 and keep your house. Has your lawyer discussed this with you? Do you plan to bring your mortgage payments up to date before you file?

From what you've shared here, you are way over your head financially with this house.

We Were Never Late On Our Credit Cards, Just Our Mortgage. We Are Not Paying Mortgage Right Now Because We Were Advised Not To By Our Lawyer, Besides We Can't Afford It!

This is one more sign that you are overextended financially. How much debt can you wipe out if you file Ch 7? If you take away all your non-secured debt, can you still afford to pay the reset tripled mortgage? You need to think about this now because once you pull the bankruptcy trigger, there's no going back and you could still lose the house.

I'm Worried That They Will Take Everything We Have. I Want To Try To Save The Car We're Are Financeing, Our Lawyer Told Us That We Have A Straight Forward Case.

If your lawyer hasn't told you that you have to be current on the house to keep it and that's the only reason you are filing, then you need to have a serious discussion TODAY with him/her.

What Will Happen As Far As Future Purposes,audits,court Etc. Again Our Lender Wants That Debt Gone, So We Are Doing All Of This To Save Our Home.

Once you wipe out your unsecured debt, what % of your income is going to keep this house?

There Is Alot More To This, I Don't Want To Bore You Guys Any More. Thanks

To help you sort things out better, it's really good if we know the "alot more" aspects of your case. Whatever you feel comfortable sharing would be very helpful.

Frankly knowing only what you've shared here, it's very likely you are only delaying the inevitable while digging yourself in deeper trying to keep your home at any price. Unfortunately the price will be your family's financial health and peace of mind. No house is worth that.

[DM1]

I know that it sounds too good to be true, but what do i do in a case like this. I know that family and health comes first, but when you devote your heart and soul to your first home, and long hours of sweat and tears how can you let it go just like that! I'm confused! My lender would be willing to bring it down to 1900 a month. it's true that it doesn't make sense that if i file for bk, you can't refi or anything...so how does that work with me saving my home. My lawyer will try to stick the missed payments back into this loan. Either way i'm done with these cards!! If i loose the house, i loose the house. But it's hard to come up with a game plan when you feel that the world is against you. lawyers make it sound simple and i can't trust anyone right now. i don't know what will work, how it works and what is right and wrong. You say to ask questions, but what do i ask? maybe the lender is willing to work something out so that our home doesn't foreclose. I know that the best thing to do is walk, forget our home and continue to make our credit card payments. But if we foreclose our credit is done(i'm sure it is already with these late payments) so what would be the difference if we file for bk. Forgive my slow and incorrect typing. Is there a number where i can discuss this matter and get some honest advice?

[DM1]

can someone list some bk 101 questions to ask my lawyer, so that i can understand it better? i would be willing to give my phone number out to discuss my situation better. it takes me a year per word to type.

[Boscoe]

Daniel is a great example of how shortsighted the Republicans in Congress are. They refuse again and again to even consider allowing an amendment to this bk law to permit BK judges to modify terms of mtgs so the borrowers can afford them.

If a judge were to allow his debts to be wiped out, affirm the car loan and re-do the mtg to a fixed 6% at an amount that he can reasonably afford, then he could make it.

Unfortunately, there is nothing out there now that will allow someone behind on their mtg to keep the house in a ch 7, and a ch 13 will not help him as he simply cannot afford the payments even if the past due amount were forgiven.

Thank you once again, George W. Bush.

[lrprn]

...when you devote your heart and soul to your first home, and long hours of sweat and tears how can you let it go just like that! I'm confused!

One of the hardest things to do when we're in major financial trouble is to take a cold, hard look at the situation without emotion. You are making a business decision. If a good friend came to you and described the situation you've told us, what advice would you give? Keep killing yourself and making your family miserable trying against all odds to keep a thing? That's what a house (or a car or any other item) is...a thing. Things can eventually be replaced. The love you have within your family and doing what's right to help everyone live a more stress-free life cannot. Is your house more important than your family's peace of mind?

My lender would be willing to bring it down to 1900 a month. it's true that it doesn't make sense that if i file for bk, you can't refi or anything...so how does that work with me saving my home. My lawyer will try to stick the missed payments back into this loan.

Daniel, unless your lawyer has obtained a written agreement from your lender that they won't foreclose if you file being in arrears on your payments, you cannot be behind on your house payments and keep the house if you file Ch 7. Do you or your lawyer have that agreement from your lender in hand?

Forgive my slow and incorrect typing. Is there a number where i can discuss this matter and get some honest advice?

I'm sorry to hear that typing is hard for you. Howver, typing is all we have here in the forums As for a phone number, this forum is anonymous and that's the way it should be. None of us are bankruptcy lawyers, and we can't give you legal advice. Only a bankruptcy lawyer who has all the information about your case can give you legal advice about what to do in this situation.

It worries me a great deal that either your lawyer does not seem to be explaining things very well to you or that you are too stressed to hear what he/she is telling you. Take a deep breath and go back to your lawyer. Ask all the questions you are asking us here, and also ask how you can be behind in your mortgage payments, file Ch 7, and keep your house. That's the most important question you need an answer for right now.

Hang in there. We'll help you sort things out as much as we can as long as you understand that we can't give you legal advice and we also can't tell you with any certainty if filing in your situation is right or not. In the end only you and your spouse can make that decision.

[DM1]

thanks for your response! ididn't want to say this but fraud was found in our paper work,and with that we will be sueing. can't really discuss this but it is in our favor. but have you ever heard of something even close to what i'm talking about. let me clairfy something here..i'm not sure that a lender will give us a new loan,but rather work something out that we both can agree on. i know that a 30 year fixed might be unheared of and a low interest. i'm hoping that we can somehow pay back all the late house payments and somehow incorporate it to a new agreement...i'm ok with that, in fact i'm ok with paying everything back...it's a matter of how much a month and how long i have to pay it. that is where i'm confused with doing what is right and protecting my butt.

[DM1]

this whole ordeal is really taking a toll on me, i've lost weight without dieting...perhaps from all the tears, i can't sleep and work is very hard for me. i'm a diabetec and stress is killing me. is it worth it? well now that i'm reading all of these threads i'm even more confused with making the right choice. i'm keeping the faith and fighting untill i know in my heartt that it is time to quit! i'm taking all of the stress for my family, my boys future was in our home. i know that we are young and can always start over. but what's the use of working your butt off for a home and good credit when at the end good credit does't mean a thing. i've had credit cards for over 15 years and never late once and a mortgage for 6 years and never late untill now. i pay my taxes, i donate whenever we can, i'm kind to everyone and now this! a wake up call...maybe! but it happens to even the most respected and kind.

[lrprn]

ididn't want to say this but fraud was found in our paper work,and with that we will be sueing. can't really discuss this but it is in our favor.

What "paper work" was the fraud in? Your home mortgage? Are you hanging on to the house so you can sue the builder or someone else attached to your home?

No matter what, if you sue and the suit isn't settled before you file, then that suit and its settlement will be a part of your bankruptcy estate for six months after you file. If the settlement comes during that time, then your trustee can take the settlement from you. Here's yet another question you need to clarify with your lawyer.

i'm hoping that we can somehow pay back all the late house payments and somehow incorporate it to a new agreement...

The "somehow" in your statements is a red flag that you still haven't thought this through to the end. Have you sat down and written out a family budget that includes everything - both income and expenses - you will be left with after filing? Do you have sufficient income to handle all your family's expenses? If the answer is no, then filing alone isn't going to fix your mortgage problem.

[DM1]

hi, fraud was found in our original loan docs. (adjustable loan) . the original brokers that got us into this loan are long gone, along with our money. so an other bank owns our loan. it's a big mess! i'm learning more and more about bk as i read these forums. point is,we got a bum loan,we signed without reading the fine print and now we're loosing our home. banks can really get nasty, that is why we got our lawyer. i'm sure you read my story and say,"loose the house, think of your family!" the more i want to give up the house, the more i want to stand up for my family and home.i guess it's a waste of time and money with my lawyer,but what if! what if something does go my way and we save our home. in a perfect world maybe! i'm now preparing myself for the worst case. but i never give up! it's hard to understand my situation without knowing the details.