Decided to foreclose my house due to moving

[jtindisguise]

Greetings all,

I received my Chapter 7 discharge about a year ago and it included my 1st and 2nd mortgage on my home. My first is a Fannie Mae loan serviced by BofA and the 2nd is a BofA loan. I managed to get a good loan modification on my own for the 1st mortgage and I've been paying as agreed for a year. The house is $150K upside-down.

My questions are; since my loan has been discharged and I'm not required to pay it, although I am (need a roof over my head), and I am going to have to walk from it..... how long will it take the bank to finally foreclose once I stop making payments? Secondly, can the bank report to the credit bureaus if the debt has already been discharged?

[dspii]

If your loan mod was after your discharge...they can pursue you for money if they foreclose. If your loan mod was before discharge and included in BK you should be OK. How long.....sounds like some people have better odds buying a lottery ticket to have it done in under a year.

[tobee43]

Greetings all,

I received my Chapter 7 discharge about a year ago and it included my 1st and 2nd mortgage on my home. My first is a Fannie Mae loan serviced by BofA and the 2nd is a BofA loan. I managed to get a good loan modification on my own for the 1st mortgage and I've been paying as agreed for a year. The house is $150K upside-down.

My questions are; since my loan has been discharged and I'm not required to pay it, although I am (need a roof over my head), and I am going to have to walk from it..... how long will it take the bank to finally foreclose once I stop making payments? Secondly, can the bank report to the credit bureaus if the debt has already been discharged?

it sounds by your post that you did not reaffirm your mortgage...

if you listed both mortgages on the bk and it was discharged with no reaffirmation, sounds like, or may be possible you are riding through the situation with no obligation to the bank.

however, if you did reaffirm when you signed the loan modification that could present a problem.

our personal experience was we vacated the premised...then surrendered the property and chose not to live there, although most likely we could have lived there "rent free" for most likely over a year.

if you had an atty for your bk, i would drop them a line, or give them a call and see what your position with respect to any obligations associated with the lod mod. actually, your atty may have to review those documents to clarify your position.

best of luck!

[debee]

It's possible to have a loan mod that is not a reaffirmation (meaning you can't be held accountable for any deficiency). This post (link below) explains it well:

http://www.bkforum.com/showthread.php?62833-Why-reaffirming-a-mortgage-is-a-very-very-bad-idea.&p=472052#post472052