About to File 13 need guidance about Mtg

[sassiebaz]

I agree with HHM. While it seems scary to walk away from a home that you may love, you have to be realistic. Also, I know several people that rent homes where the lanlord allows them to run a daycare business. Just search until you find one.

[myhearts07]

You all are right and it is time to let it go. No, daughter does not make $3k, she just got this new job last month, I will start looking for a new place to go. We are in IL and 7 months behind in the mtg, how long do you think before we get foreclosed on? We need a fresh start, so I guess we just need to recognize that we are bankrupt and just let that be that, file a 7 and move on.

[myhearts07]

All,

I do have one other concern and it is for my daughter. She is only 21 years old and new to this whole credit thing. With her being the co-borrower, if her dad files chapter 7, will the bank come after her? Wouldn't she need to file a chapter 7 as well since he won't be reaffirming the house? How is this going to affect her credit? Will she be able to get an apartment with that foreclosure on her credit? I am really torn up about this and wanted to avoid this at all costs but with the subprime lending fallout we could not refinance 6 months later and property value had dropped and we were stuck. I told her that it was not intentional and we never saw this coming and she is really upset now and I don't blame her. Suggestions?

HEarts

[StartingOver08]

Yes, they will come after her if your husband BK's the debt on any joint accounts with her. That is what a co-signer does - guarantee payment.

Since she does not have the income, I do not know how she co-signed the loan...BUT she needs to file too to discharge the debt.

[myhearts07]

She had pretty good income and no debt when she co-signed but then quit her job to go back to school. She was only giving $200/rent and we (hubby and I) paid the balance of the mortgage. Other daughter was in high school at the time and didn't have a job. We should have never taken that loan but were in a desperate place and made a desperate decision and don't want to keep making those kinds of decisions because the outcome as I see now, will never be good. So, when he files because she is his daughter, she would have to file her own claim for bk then, right? Hearts

[StartingOver08]

I don't know the answer to the question if she files alone/separately. This is where an attorney can really help. I don't know if there is a way that both can file since the two of them are on the same note as co-makers. ???

It seems to me that she would need to file separately. JMO.

[myhearts07]

Yeah, I agree. I will contact an attorney today and find out and will post just in case someone else wants to know. Thank you so much for all of your posts, concern and care. Hearts