OK, I am confused about this and want to get this straight. We moved to another state before our house in another state sold. Have been living and renting in new state for 2+ years and paying mortgage and 2nd mortgage on old house. Husband became unemployed. Old house has a renter now, but rent does not cover the costs of house. Renters nice, considerate Japanese family, feel literally sick to potentially hurt them by telling them we are foreclosing. OK, here are my questions:
1. We are now 1 mo+ overdue in Mortgage. We do not have any intention of paying any more for this house, unless maybe a good deal came from Obama to make it affordable. Absent that, we can't afford the house any longer and want to let it go. Am I correct that we include the house in our Ch. 7 bk (filing early Feb) and also include the second mortgage and both will be discharged in the chapter 7?
2. Does the trustee take ownership of the house after the Ch. 7 filing, and the ownership will pass from the trustee to the back during the subsequent foreclosure?
3. If the above is true, will the trustee allow our renter to stay in the house prior to and during foreclosure proceedings and also collect the rent payments?
3. Is the 2nd mortgage discharged during the Ch.7 before the house is foreclosed?
Thanks much!!
GoodKarma
1. We are now 1 mo+ overdue in Mortgage. We do not have any intention of paying any more for this house, unless maybe a good deal came from Obama to make it affordable. Absent that, we can't afford the house any longer and want to let it go. Am I correct that we include the house in our Ch. 7 bk (filing early Feb) and also include the second mortgage and both will be discharged in the chapter 7?
2. Does the trustee take ownership of the house after the Ch. 7 filing, and the ownership will pass from the trustee to the back during the subsequent foreclosure?
3. If the above is true, will the trustee allow our renter to stay in the house prior to and during foreclosure proceedings and also collect the rent payments?
3. Is the 2nd mortgage discharged during the Ch.7 before the house is foreclosed?
Thanks much!!
GoodKarma
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