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LADALE

I have a concern about my house. I included my house in my bankruptcy. Bankruptcy has been discharged. I told my lawyers that I wanted to keep it. However, I didn't reaffirm yet. My concern is lets say I loose my job or an unexpected life crisis happens and I'm not able to make payments anymore. Can the mortgage company start the proceedings of a foreclosure if i get too far behind? I was told that the Chapter 7 would protect me from a foreclosure and i was advised not to reaffirm just in case something happens and I have to give the house back to the mortgage company. HELP

Posted: Mon Aug 18, 2008 3:24 pm Subject:

Can you give us a little more background, please? It will help us answer your questions.

-Who told you the Chapter 7 would protect your house from foreclosure? Your attorney, or just someone you talked to?

Normally, only a Chapter 13 can stop a foreclosure from happening. In a Chapter 7, you either have to re-affirm the mortgage or surrender the property, unless your mortgage falls into the exemptions provided for by your state.

-Do you plan to reaffirm or are you just going to let the mortgage company foreclose?

I'm a little confused about your statement "I included my house in my bankruptcy" - yet later you talk about reaffirming the mortgage. Unfortunately, you can't do both - you either included the house in the bankruptcy, or you reaffirmed the mortgage. Can you shed a little more light on this?

The fact that you're saying you were told NOT to reaffirm in case you have to give the house back to the mortgage company makes me think that you may have surrendered the property in the bankruptcy - do you know if this is the case?

I hope your attorney has not misinformed you.

Please give us a little more info, and we'll be able to help you.

Posted: Mon Aug 18, 2008 3:50 pm Subject:

I am not even suggesting that I know anything about this subject but this is what happened in our bk 7 situation. I think because we owed more on our home at the time we filed that the mortgage co., didn't even bother having us sign a reaffirmation agreement, we are still living in our home and that was 5 years ago, however we were able to refinance it two years after bk.

I am with sue...I hope that your attorney didn't mislead you in anyway.

Posted: Wed Aug 20, 2008 4:24 am Subject: SUEBEEHONEY70

Would you mind giving me your email address so I can go further into detail

Posted: Wed Aug 20, 2008 6:54 am Subject:

You can Private Message through the site - Just click on the PM button under the person's post you want to talk to.

Posted: Wed Aug 20, 2008 9:54 am Subject:

Sorry about that, I didn't see your message here on the site until just now. Please feel free to PM me if you have further questions.

mom2_3kiddos · Posted: Thu Sep 04, 2008 5:31 pm Subject: chapter 7/forclosure protection

Here's what happened with us. Our lawyer included our HELOC in the bankruptcy stating that, yes it is discharged, BUT the loan co more than likely will NOT forclose on the property as long as we are still making the payments. This is because (1) the property is worth less than the first mortgage and if they forclose it would only pay off the 1st & they would loose a boat-load of $$. (2) the bank on the HELOC still accepts the payment. Our lawyer said that doing this is a protection for us if we lose our jobs & cannot pay. We wouldn't be liable for the HELOC.
BTW, we are in CA.

Hope this helps and I made myself clear!

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Chapter 7 Debtor Did Not Reaffirm Mortgage

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