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doc20002001

wells fargo home loan mod & Chp 13 switching to chp7

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Disclaimer: I did not read all the responses to your original post.  But here's my take:

 

1) Once through a Chapter 7 (assuming no reaffirmation), the mortgage note is discharged.  There will be no coming after you for deficiency should you walk away.  (As a side note, in my district it is IMPOSSIBLE to reaffirm a mortgage- judges deny them automatically because they serve no purpose and w/out a reaff you are eligible to modify under HAMP under the HAMP guidelines anyway, case law overwhelmingly supports this).   Your mortgage is ALWAYS included in a Chapter 7 discharge by law- that is a different question as to whether or not you keep the home.

 

2) A modification IS NOT a reaffirmation.  You can go through a 7, discharge the personal obligation on the mortgage, sign a modified note, then walk away later without worry of a deficiency.  Again, case law supports this.

 

3) Assuming your rebuild your credit, you will qualify for a good mortgage rate 36 months after the later of the Chapter 7 discharge or the foreclosure sale of your home.  Smaller banks may work with you earlier than that, but mid to large banks sell their loans into the secondary GSE market (Fannie Mae and Freddie Mac guidelines require 36 month seasoning).

 

Good luck.  Hope your mod works out for you.  

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Thanks for all of the responses and i talked to my attorney and " I am not responsible for taxes" so for the commenters that said i was at least in illinois if the bank was paying the taxes on the property before the BK, the bank is responsible for them. I finally got a letter yesterday from wells stating that they have turned over my case to a attorney so my lawyer expects for me to get served in the next month or so, the clock starts ticking. Hopefully i can buy two years in here as there is a lot foreclosures in my neighborhood that are going for $40,000 to $90,000 and between our savings and my 401K in two years i can go buy a house cash and be done with it. I wonder if i could even buy this house in a auction. Ill have to ask my attorney. 

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QUick question since the house/mortgage with wells fargo was thrown into my chp 7 and my credit report shows zero debt as everything has been wiped out when i finally move out of my home will a foreclosure show up on my credit report and if it does how could it if i formally didnt go through a foreclosure before my chp 7 was discharged?

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