keep current on mortgage when filing chapter 7??!?!?!

[Freddy03]

I too was wanting to stay b/c of my kids but I thought about it long and hard - Our filing BK is a complete and fresh start. I do not want to start my new life post bk with 100K more debt than I need.

I love my house (hate my neighborhood) but if Wells Fargo wants to foreclose for being a few weeks late then they could have my house and add it to the 5 other houses sitting empty in my neighborhood for over 2 years. It would be their loss. I'm even hesitate to even keep paying them. My mortgage is high. After discharge I will try to modify the loan to something we could afford more comfortably. If we can't we are going to start discussing stay and not paying for as long as we could then go rent somewhere cheaper.

[tobee43]

I too was wanting to stay b/c of my kids but I thought about it long and hard - Our filing BK is a complete and fresh start. I do not want to start my new life post bk with 100K more debt than I need.

I love my house (hate my neighborhood) but if Wells Fargo wants to foreclose for being a few weeks late then they could have my house and add it to the 5 other houses sitting empty in my neighborhood for over 2 years. It would be their loss. I'm even hesitate to even keep paying them. My mortgage is high. After discharge I will try to modify the loan to something we could afford more comfortably. If we can't we are going to start discussing stay and not paying for as long as we could then go rent somewhere cheaper.

and freddy.....the foreclosures are going so slow here....by that time WF will be begging you to keep your house and lower your interest rate and payment...( i am sooooooo wishing for you!).

[Pandora]

.. I cannot lose the house - my kids have known nothing else, and I would have to stay in the same place for school.

Equity - NONE - mort=$308,000 - house - AT MOST - $225K at MOST!!!!

Houses are 4 walls & a roof; Home is where your family is together.

You're already $83-113K upside down on the property - thats huge, not to mention the housing market keeps going down here in VA, unfortunately. Kids are resilient, they will adapt to having to move to a new house, and there are many rentals I'm sure within the same school district they attend.

The best thing you can do for your family is secure your/their financial future. What happens when/if some life changing event occurs and you cannot afford the mortgage or any other areas? Medical happens, jobs are lost, people get sick, and things need replacement/repair. The bigger concern, IMO, is that you and your wife are not on the same page in this; previous posting you state your wife wants to let the house go, yet you dont. That's something you should both be in agreement on before you proceed any further into your BK proceedings.

Just some things to think about...

[tobee43]

Houses are 4 walls & a roof; Home is where your family is together.

You're already $83-113K upside down on the property - thats huge, not to mention the housing market keeps going down here in VA, unfortunately. Kids are resilient, they will adapt to having to move to a new house, and there are many rentals I'm sure within the same school district they attend.

The best thing you can do for your family is secure your/their financial future. What happens when/if some life changing event occurs and you cannot afford the mortgage or any other areas? Medical happens, jobs are lost, people get sick, and things need replacement/repair. The bigger concern, IMO, is that you and your wife are not on the same page in this; previous posting you state your wife wants to let the house go, yet you dont. That's something you should both be in agreement on before you proceed any further into your BK proceedings.

Just some things to think about...

amen to that pandora!!

we were in our home for 33 years.....it's just WALLS ......all our memories are in our hearts and our hearts go where WE go..

[Peeps]

Current means you made the payment before the due date or within the allowed grace period. Just call your mortgage company and talk to one of their reps. They can tell you exactly when the payment is due and the grace period that you can use. Actually, I just did this today, myself. I just filed my BK and am experiencing the "shut off" while trying to stay current with the mortgage. Sent in a payment via billpay and have NO idea how long it will take to post to the account. So... we're in the same (or at least similar) shoes.

You're right, taking out a loan from your 401k isn't the end of the world. You'd be paying yourself back with interest. If you have reason to believe this is something you can successfully manage in this quirky economy, then maybe it can be a good tool for you to use to get back on your feet. There are some risks, of course... who knows what the future will bring. Best of luck to you.

[cofer22]

I was having the typical "should I stay or should I let it go" thoughts just a couple of days ago.
I live in a ski town. I just skied 27 inches of powder, came home feeling, was relaxing in the hottub with a nice refreshment when all of a sudden I thought. "This is sweet. I get to ski on my days off, relax in hot tubs, I can make this work. I don't care if I'm 250+k underwater, maybe we could figure out a way to keep this place. Maybe we're making the wrong decision. I love my house." Then I got out of the hot tub, about busted my butt on the ice, felt the cold snow on my feet, woke up and remembered.... I can do this in another house. Renting for alot less than my mortgage, puttng away more money into savings, retirement, college savings than I'd make in the ? years it takes for the real estate market to rebound, and coming out in better shape than holding on to the "emotional" HOME.
It's scary to think about giving up something you worked so hard to attain, but you gotta look long term and come up with a plan that'll have you in better shape down the road. That's what I remind myself when I have those ambivilant moments.
Don't reaffirm the house. Don't drink too many refreshments in the hot tub either. It clouds your judgement.

[Freddy03]

IamOld - I just want to give you my personal experience on this issue----I used my mortgage payment (big mistake) to pay the attorney to file, so when we filed, my mortgage payment was less than 30 days late, once it got over 30 days late, mortgage company filed motion for release of auto stay, which was granted. We scrambled to gather up enough money to get our mortgage current because we also have no intentions of leaving our home. As far as the payments being on time, one day late or anytime in the grace period, I think each mortgage company has their own rules on that in a BK situation. I called the mortgage company every month to make the payment so it would be posted the same day and not take any chances. We are still waiting to be discharged and I have regained access to my online account for about 2 months now. As I said, using our mortgage payment to pay the lawyer was a big mistake, most of my unsecured debts were only 30 days late or less, and I feel like we rushed into filing just to stop the harrassment of the phone calls, another mistake. I work from home, so the calls interferred with my production of income. So, my advice, don't rush into filing and keep your mortgage current NO MATTER WHAT!!!

Can I ask who your mortgage company is?

I had asked this question a few months ago and they replies where that it wasn't that bad to be late in a Ch. 7. Now I'm concerned. What actually happens if they file a lift of stay??

[SunshineGal]

I hope this is the right place for this question - will be filing Ch 7 around 5/15. Is it 100% important that when that thing is filed that mortgage be NOT ONE DAY late?

OR is it ok if it's w/in 30 days?

OR just make sure that once Ch 7 is filed NOT one day late???

I asked this same question when we were getting ready to file, his answer was 30 days. Personally, I would make sure it's within the grace period though.

[klsy57]

I had my meeting with creditors in maryland this week and my attorney did not even show up. I met with the trustee by myself and stated that I did not want to reaffirm my mortgage. I have still not heard from my lawyer, days later, and he has been miserable to work with the past four months. I don't know what to expect regarding my mortgage. I don't want to pay and stay because my mortgage is 55% of my take home pay. How long can I stay in the house without paying my mortage (in Maryland). I am one month behind (Dec 2010) and have made 2 payments since then.) Do I need another attorney?

[tcreegan]

Hi all,

Just an FYI, once a BK is filed, lenders usually close online access and stop statements to comply with the restrictions of the automatic stay. Not so much making it hard to pay, they probably got their hand slapped for implying a debtor owed them. Lenders can send "informational" statements and usually restore online access if you request it. Some do make it harder to pay by transferring the account to a different department, changing where/how you can make statements. ...though I think it falls under my brother Eds law: never attribute to malice things adequately explained by incompetence.

Hi Iamold, if you need to be current to the day, or in the grace period, or in the last 6 months....it is your lenders decision. Ask them and while you are at it, find out how to make payments during the BK. Call "for a friend" And do a search for HSBC mortgage, see if anyone has dealt w/ them in the last 6 months or so.

Mort=308K - house is worth (AT MOST!!!!) 220K (tax valuation 192K)
I will have to do whatever it takes to stay - reaffirm - then we reaffirm - my kids know no other place...

....Good Lord, you are going to a house that is over 100K underwater ?? You are not only past snorkel underwater, I think you are past scuba diving, need one of those bathyscaphe thingys. Do NOT reaffirm, and if you cave to the pressure and do, rescind it within 60 days.

And don't underestimate your kids resilience. I lived in the same house for 18 yrs and when I left the nest I was remarkably unprepared to go out into the world, same thing with my brothers. My own kids moved 3 times over their childhood, and they amazed me by how fast they could transition to new places. My youngest, with no help from us, went to California to be on a tent crew for music festivals. Then she went to Rhode Island to live in an artists collective. Next = ????

Well, I just hope it all works out for you and your family, whichever path you take!

Tom in Colo

[klsy57]

My question is how long I will probably get to stay in my home without reaffirming my mortgage (which I did not at my #341 meeting this week.) I do not want to keep the house and this is my second month of nonpayment.
I was current before I filed. Even a loan mod won't make staying feasible, because I am so underwater and my mortgage is 4x my salary. Can they make me leave before my BK is discharged?

[tobee43]

it's really going to depend...some areas like most of calif., from what i have heard on this forum...goes fairly quick...however, in nj....it's 3 years and i suppose we still could have stayed this entire time...here in florida i know people who have been in their homes 2 years....

so really i think it depends on the area and how quickly the bank is moving...in our case, i guess chase is so over flowing with vacated properties they aren't movin an inch on many houses.

[Wantmypeace]

...some areas like most of calif., from what i have heard on this forum...goes fairly quick....

Tobee, you're making me nervous. I'm in Central California, and we missed our December and January payment, made our February payment, and are not going to be making anymore payments (since we filed 2-11 and have decided NOT to keep the house). How quick is "quick" in CA? I was hoping we'd get at least 6 months to a year...

[tobee43]

Tobee, you're making me nervous. I'm in Central California, and we missed our December and January payment, made our February payment, and are not going to be making anymore payments (since we filed 2-11 and have decided NOT to keep the house). How quick is "quick" in CA? I was hoping we'd get at least 6 months to a year...

i'm not really certain...i just know for example...in florida and nj....it's many times over 2 years...but what i have been reading on this forum from the calif. people is the process went quicker.

i'm sorry i worried you..........you made a payment last month so i'm certain that brought you some time....find out what the process is for the foreclosures in your area...i know it nj it's via the court systems and you can go in and speak with the judge...also...we had the right to "fight" the summons...in nj. in calif. i would find out for certain how your county works it...i say county because it could vary from place to place...i'm sure you'll have at least 6 months since the bank accepted your payment last month .....and THEN you'll also have the auto stay which will hold up the process at the least another 60 days.

hope that helped a bit..

[Wantmypeace]

No worries! I'll do a little research and find out the facts before I worry too much. Thanks for your input. I'm in that limbo stage waiting for our 341, so I'm getting a little nervous...

Peace