Filed Chpt 7 and Also in foreclosure

[HOMEBODY]

With all the planning about the BK, trying to modify my loans, one of my loans went into foreclosure. I was trying to keep my late payments within 3 months and I thought that with everyone being late on their mortgages, Wells Fargo would not be filing foreclosure. I was in touch with the office of President at Wells and the lady not once mentioned that they would start foreclosure on me while we were trying to modify. She kept asking for more and more documents, even bank statements that I would not have available till the next month..Anyway, I think she knew that as an investor they would not give me a modification but she kept me busy and in the meantime, loan was late and now in foreclosure. I really thought that while in modification they would not file foreclosure.

Now, what would be the inpact on my credit report...will I have a BK and a foreclosure? I can probably bring the payments current since I do have a tenant there and now I dont have so many other bills to carry. I am going to try once again to modify. I would prefer to do a short sale eventually so that it is not so bad on my record.

What do you suggest I do at this time. After filing BK I just feel so uncertain about my future. There are no credit limits to fall back on in case my business is slow and being single, I have to rely on myself.

I dont miss going shopping anymore and hated paying interest charges when I could spend that on myself.

I just feel kind of like the other shoe is going to drop any minute with all this going on at the same time and Wells Fargo willing to sell a property for under $100,000 rather than let me pay the $166,000 at reasonable interest and rolling the late payments. I know think the lady at the Presidential office will stop me from getting a modification, she said she would not open another case at her office.

[JackBondLove]

When filing Chapter 7, anything you own (except for exempt assets) becomes property of the BK estate. You could possibly agree to reaffirm the property, but I have a hunch that as an investor, you would not be allowed to do so.

And in any case, I am not sure why you would want to continue to have a leveraged investment. You are Chapter 7 bankrupt. Busted. Broke. Penniless. You shouldn't have any non-exempt assets. As for having a short sale of a property as opposed to default on credit cards, it does not matter. If you default on one account, it's the same hit to your credit report as defaulting on multiple ones. You should consider Chapter 7 as a gift to give you a fresh start - a fresh start means not having any debt, be it personal or investment.

As for not having any backup credit - well, that is a penalty you pay for doing Chapter 7. You need to treat your exempt assets - i.e., retirement - as your backup. Or you need to get public welfare assistance (I'm on Food Stamps, BTW.) Or, you need to generate some type of income upon which to live, even in this horrific job market. There's always cr@p jobs that are available, even now.

And yes, Wells Fargo will not want to give you a modification, since that is for homeowners, not investors. I will admit that giving you the runaround was not very nice, but I'm sure that they had their reasons (probably to get you to be as current as possible, so they wouldn't lose any more money on their loan.) Their situation is that they have an asset worth $100K. Would they want to sell that asset (in the form of a loan) to you, a person who obviously does not have the capacity to stay current on debts? Of course not. You're not even the resident of the house - and banks love to have owner residents, rather than investors.