Late on the mortgage but filed Ch7 already...

[FlaOnTheRocks]

I think I just screwed up big time. Met with the lawyer early in July. He asked me if I was current on the secured bills I was planning on re-affirming. At that point I was up to date on the car and 2nd mortgage. I used my July mortgage payment to pay the lawyer. He was concerned that I missed the July payment until I told him I had to the 15th as a grace period and that I would be able to make the payment through my sister.

Well the lawyer filed Ch7 on the 16th for me and I still haven't made my July mortgage payment. My sister wasn't able to help me out as I had hoped.

I really do not want to lose the house. Is the bank (GMAC) going to proceed with a foreclosure? Am I going to be forced into a Ch13 because of this? I really don't know what to expect or what to do. I will have to talk with the lawyer on Monday but does anyone here have any advice?
Thanks!

[BK2008]

It's not past due enough for them to do anything about it yet.
Can you make the payment before the EOM?? Then you would only have to pay the late charge.

And no, even if you don't reaffirm, as long as you keep current, you could always do a ridethrough on your mortgage.

[keepmine]

It's pretty cut and dried. If you want to keep your house, you need to get current and stay current.
The first thing you have to ask yourself is, can you realistically afford the mortgage. You are protected from foreclosure for the time being by the automayic stay. GMAC must file for relief from stay to proceed with any collection of foreclosure activity.

[FlaOnTheRocks]

I may be able to pay by EOM. It would have to come from a friend or relative though as my income is pretty much taken up by the bills (even without paying the CC's). Thanks for the reply.

[BK2008]

Stop paying everything you want to go into the BK! It will free up some $$$ for the mortgage.

And you might think about if you really want to keep your car, if it is eating too much of your income, you may not be able to keep it. Go get yourself a cheap used car.

You're going to have to really take a hard long look at what your spending habits are, and make adjustments to meet your bills.

[hnhlvr]

Hi,

Now that your first month payment is late, keep in mind your credit is already plumeting! My husband's credit was approx. 730 before and it was down nearly 191 points to 539 after being late two months. Between late mortgage pmts and BK, you're looking at a painfully low score, so you need to get your finances in order fast.

Best of luck to you. (and FWIW, banks are so desperate to keep people in their houses, they WILL work with you. . . but as mentioned above, you need to look at your expenses and decide if you can financially handle the mortgage!)

[deafbroke]

Whether you decide to stay in the house or not, do not reffirm the mortgage. Reaffirming lets the mortgage come after you later for difference in foreclosure amount and amoumt owed, no matter how far down the road it happens. Do not reaffirm.

DB