Chapter 7 - behind on mortgage

[Tyler19]

Hello,

I need to file for chapter 7 bankruptcy. I am currently 4 months behind on my Bank Of America mortgage due to wife job loss, and gambling problems. We are able to make monthly payments now due to new job. Hard part is going to be catching up on the late 4 payments. If we go ahead and file for chapter 7 are they going to foreclose on the house? I call BOA every other day to get the an update on some assistance. They are trying to get some sort of MHA assistance approved but they have been working on that for 2 months. We like our house and would like to keep it. Its only 18% of our monthly income.

so my questions are....

If I file now, will it prompt them to take the house?


If we get caught up on the payments after filing bankruptcy and don't reaffirm the debt, what happens if we sell the house. We want to fix up the house and make it nice... But if we aren't responsible for the debt do we still own the house to be able to sell it?

Thanks

[notforsale]

i have been told that to go c7 you must be current on your mortgage. I would contact my mortgage company and ask them to do a forbearance to move the past due amount over the next several months. This will allow you to show as current for your filing. Good Luck!

[albacore44]

Received a letter from my attorney today detailing all the no no's now that i'm filed. a big one is to make sure you keep all your secured debts paid, or you risk the creditors asking for relief from the automatic stay so they can forclose. it can also cause the UST to dis-allow your mortgage payment as an expense, and pushing you into a Ch-13. Beware

[ItsJustMe]

If you're mortgage is such a small portion of your income, I doubt you'll qualify or be offered any assistance from BofA. At any rate, if you want to speed up any modification attempt, contact the office of the president. You can get contact information on Loansafe.org. If you email Barbara, you should get a response w/in a day or two.

[keepmine]

Have you stopped making payments on all debt you wish to discharge?
Any family that could help you with a loan/gift to catch up?

Worse case, ask your lawyer about the ole "Chapter 20". File your 7 and once that's discharged file a Chapter 13 and in that plan all you pay is the mortgage arreage at 100% plus the plans legal fees.
Yes, I know bk reform tried to halt these plans but, they're still doable. I've seen some case law. The key is, you just can't get a discharge in the 13. Once you've gotten caught up, you just stop paying into the plan.

[rooster0330]

All this talk about getting current before filing chapter 7, I am totally confused. We are behind on our mortgage, and during our consult I asked the attorney if we needed to get "current' before we filed, and he said if you want to, but you don't HAVE to! We are planning on doing a ride-thru with the mortgage. I am don't know what to make of it all, he said don't worry about it, and everyone else is saying to get current, I even told him I read it on here, and he said it is not necessary to get current......

I live in New Jersey!

[keepmine]

All this talk about getting current before filing chapter 7, I am totally confused. We are behind on our mortgage, and during our consult I asked the attorney if we needed to get "current' before we filed, and he said if you want to, but you don't HAVE to! We are planning on doing a ride-thru with the mortgage. I am don't know what to make of it all, he said don't worry about it, and everyone else is saying to get current, I even told him I read it on here, and he said it is not necessary to get current......

I live in New Jersey!

Well, you don't have to be current to file but, you better have a plan to get current in a hurry or, your lender will file for relief from stay and it'll be granted.

[aces67]

Well, you don't have to be current to file but, you better have a plan to get current in a hurry or, your lender will file for relief from stay and it'll be granted.

Ditto this!

You should be current on any debt that you want to keep and stay current.

[ryan]

Just to clarify as I'm in a somewhat similar situation...I am now, just in foreclosure on a house I DO NOT want to keep. I plan to do a C7 Bk in about 5 months (I well under median income) ...in asking a few sources about this all have said that is not a problem as long as I do not want to try to keep house.

I don't understand this part from earlier post above: "...cause the UST to dis-allow your mortgage payment as an expense, and pushing you into a Ch-13. Beware"

Does this I will be FORCED into a C13 because house is in foreclosure??

[MakinMeCrazy]

hi!
I also have Bank of america....this is what thye have done for me....they gave me a 3 month extension on my mortage .giving me a chance to catch up.....which means they added 3 months to the finally pay off date........and for the next 3 months I do NOT pay...........so instead of my mortgae being paid in full Oct 2019...it will be paid in full on FEb 2020..............I did NOT tell them we are about to file BK as we are going to file in June 2010..but it gives me breathign space and the security of them NOT foreclosing and a chance to get straight with them as we intend to keep our home...good luck......if you need the dept phone number .....let me know and I'll post it.I don't have it handy right now

[albacore44]

Just to clarify as I'm in a somewhat similar situation...I am now, just in foreclosure on a house I DO NOT want to keep. I plan to do a C7 Bk in about 5 months (I well under median income) ...in asking a few sources about this all have said that is not a problem as long as I do not want to try to keep house.

I don't understand this part from earlier post above: "...cause the UST to dis-allow your mortgage payment as an expense, and pushing you into a Ch-13. Beware"

Does this I will be FORCED into a C13 because house is in foreclosure??

It depends. did you do the means test ?? If you are forclosed on and the UST determines that you are not going to be paying that mortgage payment in the future, and you need to claim that mortgage payment as an expense, instead of the standard IRS deduction for housing expense, in order to qualify for a Ch-7, the UST could move to push you into a CH-13

[Tyler19]

hi!
I also have Bank of america....this is what thye have done for me....they gave me a 3 month extension on my mortage .giving me a chance to catch up.....which means they added 3 months to the finally pay off date........and for the next 3 months I do NOT pay...........so instead of my mortgae being paid in full Oct 2019...it will be paid in full on FEb 2020..............I did NOT tell them we are about to file BK as we are going to file in June 2010..but it gives me breathign space and the security of them NOT foreclosing and a chance to get straight with them as we intend to keep our home...good luck......if you need the dept phone number .....let me know and I'll post it.I don't have it handy right now

Whats the #... I always call 800-285-6000
always get the same run-around... oh they are working on it, should only be a week more.

[MakinMeCrazy]

hi again
BofA has great with us......I explained our loss of income ...they told me.....they can work it out to.........3 months extension or 6 months extension...I opted for 3...................they also offered me a plan where I was to make only 1/2 payments for 6 months BUT then the other half would be called in.I opted NO for that one keep trying I honestly got help fromthem on my very first call....they will expect you to give them all your financial information, and if after they figure it all out....they will work with you. and if the person your talkign ot who refuses you.ask for their supervisor or manager, they have a lot more power. I hope it works for you