I plan to file ch 7 in a few months. Meanhwile I am in the process of modifying my mortgage. I cant be in ch 7 while I am doing the loan mod.
If they reduce the principal to market value I plan to keep the house and I am hoping to modify the terms, then file ch 7 to relieve my other debt. However I may just get a payment reduction and still owe more than the house is worth.
Either way after the mod I plan to have the mortgage discharged in the ch 7. If I continue to pay the mortgage under the new terms, I assume they will not take my house. However if I need to relocate soon after I will still be upside down and am looking at a foreclosure or short sale.
Now since I would have had the debt discharged I will not be responsible for any deficiency resulting from the foreclosure or short - correct?
So in essence I could stay in my house under the new terms I am negotiating as long as I continue to pay through the foreclosure, but I am not responsible for the deficiency since I will have had the debt discharged - correct?
If they reduce the principal to market value I plan to keep the house and I am hoping to modify the terms, then file ch 7 to relieve my other debt. However I may just get a payment reduction and still owe more than the house is worth.
Either way after the mod I plan to have the mortgage discharged in the ch 7. If I continue to pay the mortgage under the new terms, I assume they will not take my house. However if I need to relocate soon after I will still be upside down and am looking at a foreclosure or short sale.
Now since I would have had the debt discharged I will not be responsible for any deficiency resulting from the foreclosure or short - correct?
So in essence I could stay in my house under the new terms I am negotiating as long as I continue to pay through the foreclosure, but I am not responsible for the deficiency since I will have had the debt discharged - correct?
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