Need help. Modification denied

[Jf24]

I got ch 7 discharged this month. Was not paying mortgage, had problems. Just found out that because I had a HAMP 3 years ago and broke that contract by not paying I can't do another mod. There is another type of mod but since I did a BK I can't get that one I think because of fannie may. I didn't get all the facts straight, I felt like passing out getting this news.

We really want stay and thought this was going to go through. They said all they can do is short sale. But since I got bk on both mortgages I can walk if wanted. Am I responsible for anything?

They also said to call the collections dept. Maybe pay arears over 5 years or so. Is this a possability?

[justbroke]

If you surrendered and did not reaffirm any mortgage, then you owe nothing and can walk. As for paying arrears, it is possible. It depends on the bank, but they will generally allow repayment of arrears of a period of time. The most I have seen is 12 months to repay and that's if you're 4 payments behind. (I think BofA does 3 months for every payment missed, so 4 missed payments is 12 months.)

It would not hurt to ask.

[Jf24]

If we were to walk we would not owe anything if it forecloses and sells for less that what was owed. What happens to the deed. I thought you would owe some kind of difference in amounts. 1st and 2nd was about 300,000 and worth only 225,000. How does this all work?

[justbroke]

If you discharged the debt, you don't owe anything. I believe you're asking about a "deficiency". A deficiency is created when the property sells for less than what you owe on it. However, when you received your discharge, you "discharged" any liability for any deficiency created by the foreclosure and subsequent sale. You would owe nothing.

(There is a limited exception when it comes to HOA dues.)

[AngelinaCat]

It is my understanding that if you did NOT reaffirm the mortgages in your BK, you are not responsible for the differences, if any. We did not have any mortgages to contend with in our BK, so I don't have first hand knowledge.

[Jf24]

Nope, did not reafirm.

My wife is on the deed. Does anything go on record for her? Also my mom was cosigner on first mort (bought house before I got married) does anything happen to my moms credit?

Thanks all for the input.

[AngelinaCat]

Again, I don't have first hand experience with mortgages and BK, but I DO have first hand knowledge about co-signed loans.

The mortgage company may well go after your mother as the co-signer. This is an oft-told story, but my husband co-signed for an acquaintance for a car loan. The acquaintance defaulted and the car was surrendered. The lending agency went after both my husband and the acquaintance. We filed CH7, and our responsibility for the difference between what the loan was for, and what the car fetched at auction, was discharged. The acquaintance did not file BK, and has a judgment for $14,000.00.

[Jf24]

Ok. The wife and I are seriously considering walking. What is the best guess for foreclosure timeline in New York.

[tobee43]

Ok. The wife and I are seriously considering walking. What is the best guess for foreclosure timeline in New York.

it's going to depend on if the bank has already began proceedings. NY is a judicial state which generally means it takes a while. our property we left is nj and it's been 4.5 years and the bank hasn't even made a move other than the first summons. (also, we don't live there).

until the house sells at auction or changes "hands" or ownership your wife's name continues to be on that deed. everyone or the majority of people on this forum believe that is a really big deal, personally i don't. our mortgage is IIB has a zero balance and the bank and i must add nj has a statue of limitation to change that deed of 20 years, so it's possible our names will never be removed. again. some think it will effect getting a mortgage down the road and again why, it would matter only those know who feel so strongly about it as i have found no legal basis that they can deny a mortgage years down the road because your name sits on deed somewhere.

if i were you, i would not pay another dime and begin to save save and SAVE more for your move. renting a place with bad credit sometimes can be a daunting task, but money talks so if you have enough saved up hopefully you will be able to find a landlord to work with you. but again, i would stay as long as you can to build up your moving funds.

timelines vary from county to county in ny........check your sheriff's website and see how fast they are moving. and, by the way, if you decide you can go to court and get the time extended under certain circumstances...i know someone that did that for 5 years, NOT that i'm suggesting that, the situation included small children and no place to go.

AC is correct, the bank may seek money from your mother in law if she co-signed the first mortgage.

best of luck to you!

[ld2366eh]

You could also try getting a free consultation with an attorney that specializes in foreclosure defense and loan modification. Perhaps you can work out some kind of modification that way? Our BK attorney also does FD and we are trying to get a mod as well. Not sure if it will work, but it could buy you some time as well...just a thought.

[Jf24]

Talked to my bk atty who also does Fd and atty for credit union. Both say it is SOMETIMES possible to get mod while in fc. If that is possible we may consider. At this point I think walking would be best. Stay as long as we could and take tobee advice and save.

If we walk, I know a bk last for 7 years on credit but is possible to get mort after 2 or 3 years. But what about a foreclosure and bk on credit report?

My wife did not file and not on loan only on deed. She has good credit if we need an apartment, but she don't make alot so a mort in her name alone will not be possible.

[ld2366eh]

Good luck to you!

We just filed our BK7 last week. Our attorney says he may be able to get us a mod as well (he's waiting until after discharge I think to pursue this) but we are also underwater and will walk if we have to. We have big dogs so it will be harder for us to rent, which is why we would prefer to stay, but whatever will be, will be. We are also taking that advice to save save save, just in case a modification doesn't work out. As they say, money talks! Hopefully with a large security deposit and willingness to pay some kind of "pet expense", we'll be able to rent and keep the dogs. At the minimum, our attorney is going to pursue a FD as well (we were served end of July) and tie things up as long as he can. Only time will tell. I just want to get through the BK first!

[ld2366eh]

It's my understanding that it's 2 years after discharge for FHA, 3 years after foreclosure.

[Jf24]

It's my understanding that it's 2 years after discharge for FHA, 3 years after foreclosure.

Thats nice to here.

I didn't even ask how much it will cost for the FD yet but I would guess the cost would justify the savings by staying longer.

[ld2366eh]

Just an FYI that we put a retainer down for $2,500. Well worth it for me. One month's mortgage payment is over that amount for us! He took one look at our summons, saw how the note is secured and thinks he has a real defense that could last a year at least, (assuming no mod). I'll believe it when I see it, but so far, my attorney has been great! He thinks a mod is a very real possibility for us, though at this point, I'm not sure I really care, the house is so far underwater. (For us, it's really all about the dogs and being able to find a place that will take them).

I hope everything works out for you!