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when can I get a mortgage?

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  • #16
    Originally posted by sofarsogood2 View Post
    The bank is offering to "settle" if the OP wants to remain in the home. Just because a debt is discharged from the debtor, the property is still encumbered with the debt and the bank can foreclose and evict the OP. It sounds like the OPs attorney is suggesting he take out a new loan to pay off the "settlement" of the lien on the house to Chase. Or they are offering a mod. It isn't really clear from OP.

    As someone who received a mod after discharge (attorney involved and reviewed), sometimes it can work out if you want to remain.

    A discharged loan remains discharged if you receive a mod of the original loan.

    Signing an entirely new loan, which is a different set of paperwork- much more paperwork, is an entirely different thing.

    The BK discharge of debt remains in force for the life of the original loan- modified or not.

    excellent point. however, the point here, is chase really has NO right after the discharge to attempt to collect any money or continue contact to collect or any type of action on the discharged debt... other than of course to serve the OP and get the out of the house. they can legally continue all action of foreclosure, however, not try and get them to sign another loan in lieu of the Op attempting to get their name off the deed.

    we all know that happens ONLY after the property changes hands from ownership to new owner. the point here if chase can get OP to sign a new agreement it trumps the discharged mortgage and one is back in the claws of chase forever. Op should continue to stay and save until the notice comes to get out...or move out and tell chase goodbye.
    8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! and all are welcome to bk forum's Florida State Questions and Answers on BK


    • #17
      I was also discharged in Oct 2009 and included a condo in my Chp 7. Made my last payment in Dec of 2008 on the condo and Bank of America has STILL not foreclosed!! I tried in the beginning of 2012 to obtain a mortgage and my broker said I had a chance of getting one, so my wife and I went with it. Well, we finally had one of our offers accepted, then proceeded to get an appraisal, inspection etc... and then when it all came down to it, we got turned down because my name was still "attached" to the condo even though I have no financial obligations to it. So, I'm really not one to give up, so I'm still trying to talk to other brokers...and also look for rent to own/owner financed properties. My wife and I have 2 small daughters and are slowly growing out of our 2 bedroom place...which is why this condo hanging over our heads so many years after the fact, is a little annoying to say the least. The point of the story is..I feel your pain and I'm not sure if there is an answer, but I spend hours researching trying to find a way...the wife thinks I'm nuts!! I wish you all the best and know that you are not alone in this mess.


      • #18
        Thanks for all your replies . . I'm still sorting thru.
        I don't know what "OP" means.

        I'm in Ohio, a judicial state. I have a one bedroom condo purchased in 1990 for 28K. Our complex has 400 plus units. It's by far not the greatest complex but it's in a nicer section of town, I back up to a woods, the grounds are pretty, it's convenient to everything. Had a variety of feedback when I purchased. I now know EXACTLY what "those places aren't structurally sound" and "Once you get in, it's very difficult to get out" means.

        In the late 90s I was sick, off work for a while and incurred a lot of debt. I used the so called equity in my condo and refinanced @ 42K. At the time, the appraiser said it was one of the nicest units he had seen in the complex. I had been doing various work in the real estate area (never a realtor) - closings, advertising, etc. When the real estate market crashed here, so did my income. I entered another field, went thru a learning curve and the past two years have made a decent income. Yes, I have been able to save some but again, I had little income in 07, 08, 09 so I'm not sure how I would have ended up even if I was paying the mortgage.

        There have been ongoing issues with the association here - I had served on the board at one time - no money saved for larger improvements, this place is falling apart, issues with carport, upkeep, many water leaks but two major - 10K plus - neighbors don't have insurance - insurance company said they weren't negligent - my company paid. Looks like I'm responsible for the whole building. It's water logged!

        Have had a home office for 5 or 6 years so a 1 bedroom doesn't fit my needs. While I have been waiting on Chase, I have maintained; however, the ac no longer works, the furnace is on it's last leg, the windows have frost on the inside. Just trying to maintain. It's not fit to rent or sell in it's present condition.

        Started receiving letters in 2011 from first a law firm and later Five Lakes Agency who say the letter is sent pursuant to 11 USC 524j which permits the lien holder to contact you in the oridinary course of business to obtain periodic payments in lieu of foreclosing. That altho the discharge may have extinguished your personal liability, they still hold a valid lien. In order to release the lien, Chase is wililng to extend some repayment or settlement options. I didn't know what to do and I didn't think I had to do anything so I didn't respond. Rec'd a letter late Dec - saying Chase would release @ 14,500. I REALLY want out of here so I thot if Chase would settle for 14K or less, give me a loan for that amount, enough to pay back taxes AND replace the furnace or 25K, then perhaps I should fix the place up and try to sell it. I didn't want to use my cash. The attorney advised against it - the complex is older, has issues, wouldn't stand to gain much, if any. The market has improved; however, you could buy a two or three bedroom in the same complex for less than what you might hope to gain.

        I could just walk but I'm still responsible for the condo dues @ $140 per month. It's doable but was looking for the quickest way for a resolution here. I NEVER thot I could get financing. The att, should not impact my ability to get a mortgage. Called a local loan officer, she said it depends on how it's reported on my credit report. Another says, NO, yo


        • #19
          OP is the original poster of the thread.

          yes, i can understand why you feel the way you do. especially, in light of an HOA assessments or added fees which could continue to pile up and you not continue after the bk.

          i have to comment that i am amazed that chase gave you has much consideration as they did, shoot, we didn't get any and we had beautiful 4500 sq foot home with acres and ponds and pools and spas and etc. not a word to work with us at all...ever. but i can see you view as not wanting to be involved with a refi or another loan with them with the complex in that condition. frankly, we had water issues and our place flooded, it literary is maybe that's why chase didn't contact, who knows. all i know is this....they will not foreclose and they will not accept a DIL and when we were still in and attempted a loan mod, 18 months after we applied we still had no answer, just a NOD. so we called their bluff and left.

          i know it's hard you can either stay and not pay and just continue with paying the HOA fees...or maybe approach and come to some type of agreement in writing with the HOA and settle?? i would look to settle with them before chase. you don't have to do anything with them.

          i really hope it all works out for you!
          8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! and all are welcome to bk forum's Florida State Questions and Answers on BK


          • #20
            thank you for your quick reply. I doubt Chase wants this property for anything and they probably like the idea I'm maintaining. Also, foreclosure is expensive and I'm not sure how they'd make anything. My atty thot it might have been lost or they are just after people with larger mortgages.
            I'll just plug along.
            I've told this story to a handful of people and people are floored that I've been here this long. I have no choice to make the best of it and learn the lesson here.

            Thanks again.


            • #21
              your most welcome!

              i know the "unknowing" is the most difficult part. just stay and try to save and save and save in case you have to move you have the money there. we did and i'm telling you know, not only do we have no regrets, but it turned out to be one of the best life decisions we ever made.

              i know you'll be fine
              8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! and all are welcome to bk forum's Florida State Questions and Answers on BK


              • #22
                OK, it's been a year now and believe it or not Chase and I can to an agreement and I paid them to release the lien & settle. They said I "may" receive a 1099C. Haven't so far. How long do the banks have to send these out and do I pay taxes on this amount? Does anybody know? Thanks.


                • #23
                  Originally posted by broke54 View Post
                  OK, it's been a year now and believe it or not Chase and I can to an agreement and I paid them to release the lien & settle. They said I "may" receive a 1099C. Haven't so far. How long do the banks have to send these out and do I pay taxes on this amount? Does anybody know? Thanks.

                  Because the loan was discharged in BK, you will not have to pay income taxes on the forgiven debt. If you get a 1099-C, attach form 982 to your tax return and check the box indicating that the debt was discharged in BK. I tried to figure out when a 1099-C has to be sent a while back, and there doesn't seem to really be any rule about timing.

                  How much did you settle for?
                  LadyInTheRed is in the black!
                  Filed Chap 13 April 2010. Discharged May 2015.
                  $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!


                  • #24
                    this is excellent news!!! i'm so glad for you!

                    as far as rec'ing the 1099c, it can be tomorrow or a few years. one never knows. this year one person whom i did taxes for rec'd one after over 4 years. sometimes depending on the agreement you may not even get one. i would have insisted on an agreement with a 1099A as opposed to the C. however, if you were, or filed your bk when you rec the c or a or maybe both, you just attach the 982 and you will be fine. the banks many time issue the incorrect 1099s, i see it all the time. either way ohio is a state where a lenders may obtain a deficiency judgments, if i filed bk i would have gone that route and not settled. most likely you will rec two from the bank form 1099-A (Acquisition or Abandonment of Secured Property) and form 1099-C (Cancellation of Debt). in most cases when dealing with property the lenders issues or should issue the A's for the acquisition but can in your case do either or both. remember this : your gain or loss is reported on schedule D (of your tax forms), for homes that were personal residences. as a reminder, the IRS does not allow people to claim a loss on personal residences. any gain (and I have seen situations where a foreclosure results in gains being reported) on personal residences can be offset by the capital gains exclusion for a main home. so keep in mind just how much you put into the place through out the years!
                    Last edited by tobee43; 02-25-2014, 06:35 AM.
                    8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! and all are welcome to bk forum's Florida State Questions and Answers on BK


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