MOrtgage Forbearance & possible chptr 13 to 7 filing.
To all,
I am 1 month behind on mortgage and planning on filing this june. There is a strong possibility of going from chapter 13 to a 7 because HELOC may not be stripped, I am having my house appraised this april and I will know more then. If it can be stripped I have enough on the means test (about $450/month) to pay of bk13, if not then I am in the negative and may qualify for a 7 even though I am above the median in NJ, as per my attorney. With that said I read that in order to qualify for a 7 and still keep the house I have to be current on my mortgage, I can possibly achieve this by contacting my Servicer now and explaining what MAY happen for me to the loss mitigation dept. I already received the forms in the mail for a hardship letter and info needed to see if I qualify for a modification, but in the end the thought of me paying for this house for 40 years is quite disturbing. I mean, with bk 13 or 7 I can actually afford the mortgage comfortably since I claim it on the means test hence I will not need to worry about cc payments after I file. If I explain this to them this should make for a strong argument for a forbearance so I can catch up with my mortgage in the next 3 months (paying only the amount owed) then resuming my regular mortgage payments thereafter. Will a forbearance if approved affect my BK filing in anyway? thanks all.
Ray
I am 1 month behind on mortgage and planning on filing this june. There is a strong possibility of going from chapter 13 to a 7 because HELOC may not be stripped, I am having my house appraised this april and I will know more then. If it can be stripped I have enough on the means test (about $450/month) to pay of bk13, if not then I am in the negative and may qualify for a 7 even though I am above the median in NJ, as per my attorney. With that said I read that in order to qualify for a 7 and still keep the house I have to be current on my mortgage, I can possibly achieve this by contacting my Servicer now and explaining what MAY happen for me to the loss mitigation dept. I already received the forms in the mail for a hardship letter and info needed to see if I qualify for a modification, but in the end the thought of me paying for this house for 40 years is quite disturbing. I mean, with bk 13 or 7 I can actually afford the mortgage comfortably since I claim it on the means test hence I will not need to worry about cc payments after I file. If I explain this to them this should make for a strong argument for a forbearance so I can catch up with my mortgage in the next 3 months (paying only the amount owed) then resuming my regular mortgage payments thereafter. Will a forbearance if approved affect my BK filing in anyway? thanks all.
Ray