AllCin Posted January 27, 2008 Report Share Posted January 27, 2008 I have yet another question, (thank you for your expert advise!) if I file a chapter 7 and list my home as to be surrendered for trustee sale, will this allow me to stay until discharge? I have already been served the summons of foreclosure, to which I am replying begging for a delyed hearing to hopefully sell. I have not contacted the lender's offices, I attempted twice and was yet again on hold over 45 min. each time. I am going to contact their attorney, as I do have emails of their apology for not being able to get in touch with them to resolve this further (another story but..). Should I ask them which would be the best way we could all work this peacefully? I have been slammed with all the short sale people and you wouldn't belive what they told me! UGH! Anyway, may I surrender my home to the trustee or will the foreclosure just take it over? I still say the loss of equity should be worth something... Link to comment Share on other sites More sharing options...
TheRoadBack Posted January 27, 2008 Report Share Posted January 27, 2008 I have yet another question, (thank you for your expert advise!) if I file a chapter 7 and list my home as to be surrendered for trustee sale, will this allow me to stay until discharge? I have already been served the summons of foreclosure, to which I am replying begging for a delyed hearing to hopefully sell. I have not contacted the lender's offices, I attempted twice and was yet again on hold over 45 min. each time. I am going to contact their attorney, as I do have emails of their apology for not being able to get in touch with them to resolve this further (another story but..). Should I ask them which would be the best way we could all work this peacefully? I have been slammed with all the short sale people and you wouldn't belive what they told me! UGH! Anyway, may I surrender my home to the trustee or will the foreclosure just take it over? I still say the loss of equity should be worth something...AllCin, what is your ultimate goal? You may have more options then you think but if you could write your own ending to this, what would it be? I have many years of experience in this are and might be able to guide you a little better and clear up some of the misonformation out there. Link to comment Share on other sites More sharing options...
TheRoadBack Posted January 27, 2008 Report Share Posted January 27, 2008 I have yet another question, (thank you for your expert advise!) if I file a chapter 7 and list my home as to be surrendered for trustee sale, will this allow me to stay until discharge? I have already been served the summons of foreclosure, to which I am replying begging for a delyed hearing to hopefully sell. I have not contacted the lender's offices, I attempted twice and was yet again on hold over 45 min. each time. I am going to contact their attorney, as I do have emails of their apology for not being able to get in touch with them to resolve this further (another story but..). Should I ask them which would be the best way we could all work this peacefully? I have been slammed with all the short sale people and you wouldn't belive what they told me! UGH! Anyway, may I surrender my home to the trustee or will the foreclosure just take it over? I still say the loss of equity should be worth something...BTW, how long ago were you served? Link to comment Share on other sites More sharing options...
AllCin Posted January 27, 2008 Author Report Share Posted January 27, 2008 I was served 9 days ago. I am writing to the Clerk of Courts requesting a hearing. I would love to stay in my home, it's a beautiful home and quite an investment. Unfortunately, I have NO way of catching up my payments, and they are adding my taxes and ins to escrow which increases my payment $500 monthly. I am already paying 11.75% to GMAC (adjusts in Oct) and can't afford higher as a private lender stated (16%!) I attempted to refi, and because of the stated not being available (self employed, rental, unofficial child support, etc.) I was shot down. Now, I feel like I need to just move forward and cut my losses. Rental's in the area are nearly $1000 LESS than my payment! I have maxed my cc's and feel bankruptcy is my only life saver, sad to say. I have spent every cent trying to keep all afloat, so nothing is left. I would like to file for a chapter 7, as my chapter 13 payment would be totally unreachable with surviving. I guess my goal now is time, if I could have say 3 to 6 months, I could save $$ and move forward amd surrender or deed in lieu. I just don't know who to speak with about this as I thought the "program" GMAC offered took care of all this, yet in exactlly 31 days, they filed a foreclosure. I guess I was denied for their "program". I have docements that GMAC was unreachable by my calls. They replied with an apology email. If I submit all that to the judge will he grant me the time I need? Sorry to ramble... Link to comment Share on other sites More sharing options...
TheRoadBack Posted January 27, 2008 Report Share Posted January 27, 2008 I was served 9 days ago. I am writing to the Clerk of Courts requesting a hearing. I would love to stay in my home, it's a beautiful home and quite an investment. Unfortunately, I have NO way of catching up my payments, and they are adding my taxes and ins to escrow which increases my payment $500 monthly. I am already paying 11.75% to GMAC (adjusts in Oct) and can't afford higher as a private lender stated (16%!) I attempted to refi, and because of the stated not being available (self employed, rental, unofficial child support, etc.) I was shot down. Now, I feel like I need to just move forward and cut my losses. Rental's in the area are nearly $1000 LESS than my payment! I have maxed my cc's and feel bankruptcy is my only life saver, sad to say. I have spent every cent trying to keep all afloat, so nothing is left. I would like to file for a chapter 7, as my chapter 13 payment would be totally unreachable with surviving. I guess my goal now is time, if I could have say 3 to 6 months, I could save $$ and move forward amd surrender or deed in lieu. I just don't know who to speak with about this as I thought the "program" GMAC offered took care of all this, yet in exactlly 31 days, they filed a foreclosure. I guess I was denied for their "program". I have docements that GMAC was unreachable by my calls. They replied with an apology email. If I submit all that to the judge will he grant me the time I need? Sorry to ramble...First off, If you were just served 9 days ago you have 3 to 6 months and most likely more before it will even go to auction. So, you ALREADY HAVE 3 to 6 months so don't panic.Secondly, what part of Florida are you in? South Florida, Northwest FL etc. I live here myself and know plenty of investors who might be able to help you out and give you cash for your house if that is ultimately what you want and stop your credit from being any more damaged and you can move on and try to start rebuilding your life without this pressure.I have had some bad circumstances which brought me to this board a few years ago and I feel it is my duty to give back as I have been given so much by other members of this board. So, if I could help you like other people have helped me, well then I guess this board is really doing it's job.And to all of you here that have helped me, THANK YOU, as your help and wisdom has given me a second chance in life that I would have never had without your help and guidance. Link to comment Share on other sites More sharing options...
Methuss Posted January 31, 2008 Report Share Posted January 31, 2008 Based on what you have written in this thread thus far, I suggest you file a chapter 7 bankruptcy to dump all your unsecured debt. State your intention to reaffirm the house. Based on your income, the lender, attorney or judge will not agree to the reaffirmation. That's OK because bankruptcy only strips your personal liability under the note. The property stays in your name and the mortgage (lien) remains unaffected. By allowing the judge to deny the raffirmation you keep the protections of the bankruptcy stay in effect; And that stops the foreclosure action during your banbkruptcy.Then once your chapter 7 is done, file a chapter 13 bankruptcy to force the mortgage servicer into a repayment program that allows you to make up your missed payments over a 3 to 5 year period. If you are just 3 months behind do you think you could pay your regular payment plus 1/12 or 1/36 more over the course of the chapter 13 with nothing but a house payment? You probably could. Also the BK13 technically "freezes" any adjustable rate loan (if that's what you have) because the plan payments are made in the beginning and stay the same all throughout the plan. The lender can't up your plan payments for the full 3 to 5 years. If you have a second mortgage and the house is worth less than your first mortgage, the second loan is stripped off as well and discharged as an unsecured debt.Now this does mean that for the entire length of the chapter 13 portion of this strategy you can't take out ANY credit without the court's permission. But since debt has been such a blessing for you up to now, you probably shouldn't be thinking about credit cards anyways. Put your money in your bank account and use just your debit card when necessary, live on cash for a while and you will save the house and develop better spending habits. Link to comment Share on other sites More sharing options...
AllCin Posted February 2, 2008 Author Report Share Posted February 2, 2008 How could I possibly file to reaffirm my home when I was served foreclosure papers 2 weeks ago? I would love the chance to sell but doubt it can happen that fast and I will not recover my lost equity at this point either to cover my credit card debts like I had hoped. I want to file a BK7, my problem is, for the safety of covering any deficiency as well as the credit card debt, how should that be handled? Do I surrender per the bankruptcy or do I attempt to deed in lieu direct with the lender? I can't afford the chapter 13 plan payment and I am sure I would be setting myself up for disaster, so I am now working on the future by filing chapter 7 and moving on? Thank you so much for all the words of wisdom! I truly appreciate it! Link to comment Share on other sites More sharing options...
Methuss Posted February 2, 2008 Report Share Posted February 2, 2008 How could I possibly file to reaffirm my home when I was served foreclosure papers 2 weeks ago? Look at your Note. You will find a section called a "Right to Cure." Which says you have the right to reinstate your Note up to the day of the foreclosure sale.Under the new bankruptcy law you have to state your intention to reaffirm or surrender secured property. You have to...it's required. You don't want to surrender because the house then becomes the property of the estate under the Trustee. So the only other thing you can do is elect to reaffirm. Given your financial status, you won't get a confirmed reaffirmation anyways. The lender has to agree to it; your lawyer must sign an affidavit that it would not cause you undue financial hardship; and, the judge must also agree it is in your best interests. It is unlikely all three of these hurdles would be passed.But the new law, as poorly crafted as it was, says the stay remains in effect as long as you choose to reaffirm and do your part to follow through on that regardless if it ultimately fails to be confirmed by the court.In a chapter 7 you are not liable for any deficiency balances and all your unsecured debt is wiped out anyways. The method I described in the last post is how to deal with it. The Chapter 7 wipes out your unsecured liabilities. Then the follow-up chapter 13 forces your secured creditors into a repayment program and strips undersecured claims on the house so you don't have to pay it. The only thing in your chapter 13 plan would be your house and maybe a car (if you have a loan on one)...the credit cards would already be gone from the Chapter 7. Link to comment Share on other sites More sharing options...
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