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    Discharged mortgage

    I filed bankruptcy in Nov 2018 or it was finalized then. I fell on hard times during that, fell behind on my mortgage pmts. I tried to get a difirment but was told that my lender doesn’t allow those. So I was making only half monthly pmts. So during the process my mortgage company discharged my loan with them. I want to get caught back up but they are telling me the only way to do this is to pay the back pmt in a lump sum which I can’t do. I asked for a loan modifaction & they agree to that but my pmt will go up. Any suggestions or advice on what to do ? What does the discharge actually mean & what if I just keep making the pmts as I was , can they evict me ? Thanks in advance

    #2
    If the mortgage note was discharged in bankruptcy in 2018, then you have no personal responsibility for paying the loan and can walk away. As for your modification, it appears that the lender will re-amortize your loan after putting the arrears into the loan. That certainly does make the payment increase. It is also normal for a lender to require you to catchup on ALL payments in a lump sum to get back into their good graces... with the exception of a modification. Most modifications just add the missed payments into the balance and re-amortize causing the payment to go up a little.

    Your lender, if you refuse to pay or can't pay, will start the foreclosure process. They can't evict you unless they own the home and they do not own the home at this point. Once the foreclosure is finalized (completed) and the lender becomes the owner of the property, they can then send you a quit/vacate notice and proceed to eviction.

    If you cannot afford this place, which it appears, then you need to think about what you want to do. In Illinois the foreclosure process is judicial and it seems that it's at least 215 days to foreclose.

    You need a strategy of where you want to be. Continuing to pay your mortgage may not be an option for you. If you decide that you can't afford this home, some will recommend that you stop paying the mortgage and start saving every penny of that mortgage payment. Ride through until the home is foreclosed and then used the money to move.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13, discharged 5/10)
    Chapter 13 Filed (Pro Se) 5/14 (discharged 8/19)

    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

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