No Equity - 11 USC 362(d)2

[laurannm]

I just came across an article from someone who filed Ch 7 and had no equity, and whose lender filed a relief of stay simply because the debtor had no equity in his house. The lender then foreclosed. It referenced 11 USC 362(d)2 in the code, which does indicate that a creditor can file a relief of stay if it proves that the debtor has no equity in the property in question. Anyone heard of this happening before? The post then went on to say that the reason why a lender would do this is because of the tax write offs and the funky tax loopholes in our tax laws. I have always wondered why a lender would refuse to reaffirm and this could explain why.

We have no equity but would like to keep our house.

Thanks

[keepmine]

Personally, I've never seen it happen.
I think I know the site and the poster and the guy has a habit of stretching the truth a little. If you look at some old posts he made prior to filing, he had a constant battle with the lender over credit reporting and escrow issues. If the lender really did this, it may well be they saw an opportunity to rid themselves of a problem.

[laurannm]

Was the poster's name Methuss?

I have always wondered though why a creditor would refuse a reaffirm if it is in their best interest...

[laurannm]

I am a little freaked about this. We are upside down on our mortgage but would like to keep the house, and were hoping to do a ride-through. Anyone out there successfully doing a ride through on a house they are upside down on?

[keepmine]

Was the poster's name Methuss?

I have always wondered though why a creditor would refuse a reaffirm if it is in their best interest...

That's the one

[laurannm]

Thanks Keepmine....I feel a little better now.

Still interested in hearing from anyone who has successfully done a ride-through on an upside down house though, just really put my mind at ease

[laurannm]

Just a little update in case anyone else is as paranoid as I am (which I doubt ....For the heck of it I contacted the bankruptcy department at my lender and according to them, in the absense of a reaffirm they would allow us to do a ride-through, even if there is no equity in the house, as long as we remain current. If we wished to reaffirm they would draw up the papers. If we don't then as long as we continue making payments we are fine. The reaffirm only accomplishes thegoal of getting the payments reported properly.