We filed BK7 a couple of years ago but didn't reaffirm with our mortgage. We continued to make payments to stay there, but now we can not continue to do so. We quit making the payments and just received a letter from a lawyer stating we have til April 1 to pay. My question is, do we have to respond to this letter and what happens next??
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A lot will depend on the Foreclosure Laws in your State. Some States, Foreclosure goes quick. Some States, Foreclosure is slow.
If there's a "right to sale" clause in your mortgage, your Lender won't have to pursue a Judicial process to Foreclose. Since the mortgage was included in your BK, the Lender could start advertising your house immediately for public auction and sell within 30 days.
New York is a Judicial State. Legalities to do with Deeds, historically speaking. You'd have a while to live there before you'd have to move.
You need to research the Foreclosure process for the State you live in. That will give you an idea of how long you have.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
Failing to sign the reaff helped you also.
By not siging the reaff (rarity on mortgages) the creditor will not be able to sue you for the deficiency once the house has been foreclosed.Comment
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