We filed chapter 7 two months ago. At the time we said we were going to surrender our house which is underwater by about $30,000. Now, having looked at rentals for the past month we have decided it makes more sense to stay put as our mortgage is significantly less than rent on a comparable home. My question is can I do this? The trustee has shown no interest in our house and our attorney said she more than likely would not want it and it would just foreclose. Can we the bank and see if they will work with us?
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As long as you make your mortgage payment(s) what you put in the Statement of Intentions should have no real signifigance. If you are not current you need to work with your lender to catch up the payments (maybe even try for a loan modification - if you "qualify"). If you are current, just stay current and you will be fine.
Des. -
I agree with Des. Just keep paying on time and the bank will probably not bother you at all. The debt should discharge normally and you would be free to abandon the property -- actually surrender it -- at a point in the future. I was able to get a modification during my Chapter 7 to bring my loan current, even though I discharged the debt! I did not go through any "trial" period and the modification was done before my Chapter 7 was discharged. Thing may differ for you based on your bank and other factors.
If you filed with an attorney, just ask their opinion based on where you are with your payments at this time. If you are current, then it should be as easy as just keep making the payments on time. If you are not current, you may need a forbearance, installment and/or modification to get back on track.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.Comment
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Thank you to both of you!Comment
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I did the exact thing. I surrendered my house, then when I saw the rent in my neighborhood, I changed my mind about moving. I did a modification with my bank. My second payment is due in October, so my experience is new. Good luck.Filed August 20
341 on September 23 Report of No Distribution - September 24 Case Discharged and Closed on November 23!!!Comment
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Thanks drowning! That's very encouraging to hear!Comment
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