WaMu/Chase Mod Moving Forward - Page 3 - Loan Modification Forum

snapple candy · 06-06-2009, 08:19 PM

pb, even if they get a a judgment, you can discharge in BK. Then it is over. They have no recourse. I did it. And it was a slimy attorney too! It felt good. CW, yes they are differnt depts. Shouldnt make too mcuh difference.

pbharris4 · 06-07-2009, 07:56 AM

Quote:

Originally Posted by snapple candy

pb, even if they get a a judgment, you can discharge in BK. Then it is over. They have no recourse. I did it. And it was a slimy attorney too! It felt good. CW, yes they are differnt depts. Shouldnt make too mcuh difference.

Snapple, in reference to the judgement and the bk....is it only discharged in the bk before the court date or after they already garnish your pay?

pbharris4 · 06-10-2009, 08:09 PM

I wish Chase would just get their act together. I had DH call them to see if they got our updated paperwork (Loan's in his name) and ask our status. A montha go we got a letter saying we'd hear in 30 days (which is today), then last week the one lady said she didn't know how long, then a woman from the Executive team said we were in the beginning of Phase 1 and she'd follow it. So the guy in the Imminet Default dept. was very nice and told my DH that we are almost to Phase 2 and it may be a few weeks but when we faxed the updated paperwork we forgot to sign the taxes. So we're faxing that in the morning attn; Missing Documents and then it should go to the underwriters. He said we should know in a couple weeks.

He also said that it's taken so long because they just created this dept. a few weeks ago for people who were current or about 1-2 months late and that we got stuck in with everyone else. (Probably a load of BS) BUt he said we have a WAMU/Chase owned loan (not a Fannie Mae/Freddie Mac) and that they are making WAMU/Chase owned loans top priority over the others. (Probably another load of BS).

So we'll see what happens. Just wanted to throw that out there.

Marie T · 06-10-2009, 10:46 PM

That is good news to me too if they are actually making WAMU/Chase loans a priority as mine is owned by WAMU. I'm not sure I believe it either! Mine was just assigned to a negotiator today.

pbharris4 · 06-11-2009, 04:57 AM

I meant to say that the guy said we are almost through the second phase and it should be at the underwriters very soon..they are just waiting for the signed tax papers.

cliffdweller · 06-11-2009, 08:54 AM

Sounds like progress. At the risk of being hanged, I must say that I believe what you have been told.

I know that banks are out to make money, but I do not believe that they
are out to get us....it is an issue of "get what you can" and I think that
is exactly what we are doing as well. My own experience is to be cautious
persistent and logical, and things will work out.

pbharris4 · 06-11-2009, 10:07 AM

I pretty much believe what this last guy has told us, BUT I exercise caution. After reading everyone else's posts and everyone being told different things it's scary.

CHase/Wamu knows we'll be filing CH7 as it was in our hardship letter and they'll see our credit report that we haven't paid anything on our cards since November 08. I would assume they know the time crunch we are under and the mortgage and heloc will either be modified to where we can pay it or it will be thrown into the CH7.

snapple candy · 06-11-2009, 10:24 AM

pb, cant remember the how and why I posted that previously.

When you file for BK, you have to include all debts you want discharged on your schedules at the time of filing. I do not know if that can be amended along the way, this is something to talk to BK attorney about. Have you applied for your 2nd to be modified? It needs to be done separately from the first. Assuming your 2nd with Chase, it needs to be faxed to Loss Mitigation. If you are underwater, it maybe helpful to put HELOC in your BK. You have a lot of leverage if that is the case.

snapple candy · 06-11-2009, 10:28 AM

Cw,
I agree they arent out to get us...just get as much as they can. Everyone jockying for position. Its a game of money and screw the real reasons why we are all here.

pbharris4 · 06-11-2009, 12:06 PM

Quote:

Originally Posted by snapple candy

pb, cant remember the how and why I posted that previously.

When you file for BK, you have to include all debts you want discharged on your schedules at the time of filing. I do not know if that can be amended along the way, this is something to talk to BK attorney about. Have you applied for your 2nd to be modified? It needs to be done separately from the first. Assuming your 2nd with Chase, it needs to be faxed to Loss Mitigation. If you are underwater, it maybe helpful to put HELOC in your BK. You have a lot of leverage if that is the case.

1st and HELOC are both Chase/Wamu owned. We did apply for both to be modified.

We are waiting to file because we want to see what CHase will do, but at some point probably in the next 3-4 months the credit cards may get a judgement for garnishment. We ARE underwater on the house by around $100K on the first.

I thought you could only include the HELOC in a CH11? We're doing CH7. If they don't give us a decent offer then the House & HELOC will go into the CH7 BK. I am just afraid that they'll give us a good modification, we'll reaffirm, file CH 7 and then they'll reneg on the modification and then we'd be screwed as you can only file CH7 once every 8 yrs.

snapple candy · 06-11-2009, 12:31 PM

Pb,
I am not so sure Chapter 7 is every 8 years. I think it is more like 4. Yes, I think you are right, 2nd can be stripped in 13. So you want to try and wait until you get final mod if possible before filing? You may want to go to cash only basis for awhile and stall the cc's some how from getting judgment. I dont know if I would be concerned about Chase changing mid-stream if you file BK. Is your attorney very helpful in guiding you on this?
I am 100K underwater as well. Did Chpt 7, 2 years ago. I am hearing alot of HELOCs willing to settle on very small amount. I just put my heloc in at Chase/WAMU. When did you put your in? I called yesterday and they said I would hear back in a couple days. Already starting trial payments for 1st. Dont know if that gives HELOC a priority for a workout. Ill let you know how it goes.

pbharris4 · 06-11-2009, 12:44 PM

Been cash only since Oct/Nov 2008. Can't pay any of them anything even if we wanted to as it would show preference to one or the other. Both modifications have been in since Dec. 2008 or Jan. 2009.

Were current until June 1st. Yes definitely want to wait for a mod. before filing. What did you do with your home when filed Ch7? I would think if you filed BK and didn't include the house in it that Chase doesn't HAVE to do anything for you? If you defaulted and foreclosed then you'd be responsible for the taxes and any money not collected. AND you already filed BK so then you'd have to come up with the money, right?

Please keep me informed.

If you don't me asking..what state do you live in?

snapple candy · 06-11-2009, 12:58 PM

I did list them (1st & 2nd) in my BK but was current and because there was little equity (under 50K) at the time, it was protected since it was my homestead.
My payments already include taxes and insurance and WAMu has still been paying them even though I have not made a payment now in 1 year. I stopped paying the 2nd 3 mths ago. I am in oregon and non-recourse state. If I walk they cannot come after me for 1st and they can try on the 2nd but I have no money so cant get blood out of a turnup. I can always discharge in 2 years if I have to if it all falls apart. I dont have any money to settle with them on the second even if they offered it. Since so underwater, they really have no leverage on the 2nd.
Did you re-file paperwork in April after Obama plan came out? I have ben working on this with WAMU since last July...and it hasnt been fun.

pbharris4 · 06-11-2009, 02:58 PM

We had a sub prime then they modified us in late 2007 or early 2008 into a 5 yr ARM. (Payments went up $800/mo!) Nothing like refinancing from one bad loan to another. (DH had lost his job and took a paycut) When we sent paperwork in late 2008 they said we didn't qualify because they already modified. Then March rolled around and they called us saying we now qualified and next day FedEx delivered the packet. Been waiting since.

Personally, I think they were waiting until we missed a payment to do anything.

That's interesting about you including it in the BK and haven't paid and they haven't foreclosed on you. It's so confusing to me. So I wonder if I include it in the BK if we have to surrender the house? Couldn't we live in it until they modify the loan? If they do not modify the loan then we could walk away from it and not be liable for any monies? We haven't personally met the lawyer..we've talked to him and his paralegal several times and they are super busy. All our paperwork is ready to go in case of an emergency filing..as of now we are waiting. He'll meet with us right before we actually file.

pbharris4 · 06-11-2009, 03:24 PM

Snapple (and anyone else who wants to jump in):

These are VA's state exemptions (as I live in VA)

If I am wrong please correct me. I think I get it now. Since my house is underwater by $100k, I can include the mortgage & HELOC in the CH 7 using the Homestead Exemption. So I can keep the home..IF I make the payments. Should I stop making the payments and they do not modify the loan we can walk away, let them foreclose and not have to pay any $$ or taxes?

Married couples may double the amount of the federal exemptions.
If you choose the second exemption scheme, under Virginia bankruptcy laws, you can generally keep:

Your home, if you do not have more than $5,000 plus $500 per dependent in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages)
One motor vehicle, if you do not have more than $2,000 in equity (today's value less costs of sale less payoff balances on all liens and mortgages)
Wedding and engagement rings
Family portraits and heirlooms, up to $5,000 in total value
The family Bible
A burial plot and any pre-need funeral contract, up to $5,000 in total value
Clothes, up to $1,000 in value
Household furnishings, including beds, dressers, rugs, appliances, sewing machines, pots and pans for cooking, plates and eating utensils, up to $5,000 in total value
Pets
Professionally prescribed health aids
Tools, books and instruments of your trade, including motor vehicles, up to $10,000 in total value
Farmers' equipment, including a pair of plow animals with gear; a wagon or cart; a tractor, up to $3,000 in value; two plows, one drag, one harvest cradle, one pitchfork, one rake and two iron wedges; fertilizer and fertilizer material, up to $1,000 in value
Military uniforms, arms and equipment required by law or regulations
Personal injury and wrongful death causes of action and proceeds
ERISA-qualified pension benefits, up to $17,500 per year
Public employee pensions
Industrial sick benefit insurance
Group life insurance benefits
Cooperative life insurance benefits
Burial society benefits
Fraternal benefit societies benefits
AFDC and aid to the blind, aged and disabled
Crime victims', unemployment and workers' compensation
Disabled veterans are entitled to a special exemption, up to $2,000
At least 75% of your earned but unpaid wages

A bankruptcy does not wipe out voluntary liens, like mortgages and deeds of trust, or tax liens. So the lender still has the right to foreclose if you do not pay. If you pay, everyone is happy. Remember, the lender does not want the property; it wants you to pay regularly on the loan. Foreclosure is a last resort for the lender if it concludes it can't get the owed money any other way.

So if the bank forecloses because we stop paying after the CH7 filing we don't have to pay taxes on the house when it sells ay auction or the difference in what we owe and how much it is worth?

BTW, thanks for your help!!!

pbharris4 · 06-11-2009, 03:30 PM

Sorry it took me too long to edit.

snapple candy · 06-12-2009, 08:14 AM

Pb,
I think you have to pay taxes on the difference between what it was sold for at auction and what is owed. I am not sure that applies to the HELOC. I think only the first. This may vary from state to state.

I HIGHLY recommend you have a personal consult with your BK attorney to make sure that there are no mis-steps on your part. You need to know exactly what you liabilities are of you choose certain scenarios or take certain steps. Just guessing or interpreting these statutes on your own is a mistake. It is worth the piece of mind to pay the consult fee. This could really cost you in the end if you make a wrong move.

pbharris4 · 06-12-2009, 08:24 AM

Yep..we have an atty. I put an email in to him. I go on the bkforums as well and someone explained it to me over there. They say it's illegal to do a modification after a BK discharge. After you include the mortgage in your BK you basically do not have a contract with the bank because you included it so they can't modify then. UNLESS you reaffirm it first. The person came up with a good point...why would we keep a house that has negative equity of $100k? But if Chase/Wamu gives up a nice mod. with lowered payments...to make it more affordable and a fixed rate..we'd do it..probably.

snapple candy · 06-12-2009, 08:58 AM

Pb,
I have never reaffirmed after BK and doing a modification so I am not so sure about how accurate that info. I would be careful as to what is legal and illegal per those bk blogs. This is why I strongly suggest one on one with BK attorney to go over all these details. I ask myself the same thing. Why keep a house with 100K negative equity? I understand lowered payments for 5 years only (in general). Outside chance of principal forbearance. I see 7-10 years before break even. In the end is it worth it when you pencil it all out? Tough decision. trying to separate emotional from logical.

Marie T · 06-12-2009, 09:20 AM

As far as whether or not to "trust what the banks are telling us", when I spoke to the local CHASE guy this week, I told him that if WAMU/Chase really looked at what they would get out of house if it went to foreclosure since there is so much repair work that needs to be done, that WAMU should want to do a mod with me and not get the house back.

He told me that, unfortunately, they sometimes only look at the house "on paper" or do an exterior appraisal (it looks great outside!) so what I thought would be a huge bargaining chip for my mod may not be at all. He also told me that CHASE doesn't want my house, that they look at it black and white, strictly as an asset (not a house or home) and there is no emotion in whatever they do.

pbharris4 · 06-12-2009, 12:21 PM

Quote:

Originally Posted by Marie T

He also told me that CHASE doesn't want my house, that they look at it black and white, strictly as an asset (not a house or home) and there is no emotion in whatever they do.

And that's how it should be for them. However, that's what is THE hardest part for owners.

When I originally plopped down all the $$ for this house it was the house I wanted to stay in forever, the area..forever, the schools..until the kids are all graduated and maybe just maybe when the kids are out of college (hopefully we'll qualify for aid for that) we will move to a smaller one level with a finished basement. Some people know they won't stay long or don't care if they move. I'm not one of those people.

Marie T · 06-12-2009, 03:02 PM

I agree that it should be that way - my concern is that if they do not do an interior appraisal they will think the house is worth a lot more than it is and since we paid a huge downpayment they will use their calculator and figure they will come out ahead if they just foreclose. (we have a lot of structural damage that is not evident from the outside)

We have lived here ten years and when we bought it my husband said this is our last house. If I was not emotionally attached to the house, we would have left a long time ago with losing my job and the structural damages (unfortunately could not sell it with the damages either) Most people today only stay in their homes 4 or 5 years and I have been thinking that the banks are probably counting on that with some of these 4% loans they are doing on the loan mods.

pbharris4 · 06-12-2009, 03:47 PM

Marie, I know it's tough. I would be surprised if they did an interior appraisal which would probably cost them more. I totally forgot about the appraisal until some woman was parked outside my driveway taking pictures of my home as I pulled up into the garage. I have 5-7 foreclosures in my neighborhood. One right next to me and one across the street and one directly behind me as well. The one house was $799,990 and just sold at $299,999. We have 1.4 ac. and they had 2.5 ac. and same sq.ft. (4100 sqft) It would sure be nice if they brought our down to that! I am seeing the other side though and maybe you should think about too. If we have to we have to. SOme people say to look at it as a business decision, BUT you don't look at it that way when you buy it..you look at it as a home.

cliffdweller · 06-13-2009, 10:37 AM

Hi Guys,
Marie - does your home have "uniqueness" that will make
it desirable in the future? Ours does, and that is why we're
hanging on. It really doesn't matter what anyone says it is
worth, it matters what you can sell it for. When we bought our
home, there was a bidding war that went $60K over the selling
price. Things like prime location, great schools, view, privacy,
unique home structure, landscaping.... matter to some people who have the
money to pay for it. Every change we make to our home, we
do with that in mind....fireplace in the master bedroom, waterfalls, decking,
custom window sills, etc....but that is us...just wanted to share
that perspective. If I lived in a track home with little uniqueness or
desirability, I would probably let go.

cliffdweller · 06-14-2009, 03:26 PM

On second thought, maybe I wouldn't. With a BK on the record, and no
money for down payment, we probably won't be buying another place...I don't know...your home is your home as PB says..it is tough.

06-06-2009, 08:19 PM	#51 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward pb, even if they get a a judgment, you can discharge in BK. Then it is over. They have no recourse. I did it. And it was a slimy attorney too! It felt good. CW, yes they are differnt depts. Shouldnt make too mcuh difference.

06-10-2009, 08:09 PM	#53 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward I wish Chase would just get their act together. I had DH call them to see if they got our updated paperwork (Loan's in his name) and ask our status. A montha go we got a letter saying we'd hear in 30 days (which is today), then last week the one lady said she didn't know how long, then a woman from the Executive team said we were in the beginning of Phase 1 and she'd follow it. So the guy in the Imminet Default dept. was very nice and told my DH that we are almost to Phase 2 and it may be a few weeks but when we faxed the updated paperwork we forgot to sign the taxes. So we're faxing that in the morning attn; Missing Documents and then it should go to the underwriters. He said we should know in a couple weeks. He also said that it's taken so long because they just created this dept. a few weeks ago for people who were current or about 1-2 months late and that we got stuck in with everyone else. (Probably a load of BS) BUt he said we have a WAMU/Chase owned loan (not a Fannie Mae/Freddie Mac) and that they are making WAMU/Chase owned loans top priority over the others. (Probably another load of BS). So we'll see what happens. Just wanted to throw that out there.

06-10-2009, 10:46 PM	#54 (permalink)
Marie T Senior Member Join Date: Apr 2009 Posts: 431	Re: WaMu/Chase Mod Moving Forward That is good news to me too if they are actually making WAMU/Chase loans a priority as mine is owned by WAMU. I'm not sure I believe it either! Mine was just assigned to a negotiator today.

06-11-2009, 04:57 AM	#55 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward I meant to say that the guy said we are almost through the second phase and it should be at the underwriters very soon..they are just waiting for the signed tax papers.

06-11-2009, 08:54 AM	#56 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Sounds like progress. At the risk of being hanged, I must say that I believe what you have been told. I know that banks are out to make money, but I do not believe that they are out to get us....it is an issue of "get what you can" and I think that is exactly what we are doing as well. My own experience is to be cautious persistent and logical, and things will work out.

06-11-2009, 10:07 AM	#57 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward I pretty much believe what this last guy has told us, BUT I exercise caution. After reading everyone else's posts and everyone being told different things it's scary. CHase/Wamu knows we'll be filing CH7 as it was in our hardship letter and they'll see our credit report that we haven't paid anything on our cards since November 08. I would assume they know the time crunch we are under and the mortgage and heloc will either be modified to where we can pay it or it will be thrown into the CH7.

06-11-2009, 10:24 AM	#58 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward pb, cant remember the how and why I posted that previously. When you file for BK, you have to include all debts you want discharged on your schedules at the time of filing. I do not know if that can be amended along the way, this is something to talk to BK attorney about. Have you applied for your 2nd to be modified? It needs to be done separately from the first. Assuming your 2nd with Chase, it needs to be faxed to Loss Mitigation. If you are underwater, it maybe helpful to put HELOC in your BK. You have a lot of leverage if that is the case.

06-11-2009, 10:28 AM	#59 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward Cw, I agree they arent out to get us...just get as much as they can. Everyone jockying for position. Its a game of money and screw the real reasons why we are all here.

06-11-2009, 12:31 PM	#61 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward Pb, I am not so sure Chapter 7 is every 8 years. I think it is more like 4. Yes, I think you are right, 2nd can be stripped in 13. So you want to try and wait until you get final mod if possible before filing? You may want to go to cash only basis for awhile and stall the cc's some how from getting judgment. I dont know if I would be concerned about Chase changing mid-stream if you file BK. Is your attorney very helpful in guiding you on this? I am 100K underwater as well. Did Chpt 7, 2 years ago. I am hearing alot of HELOCs willing to settle on very small amount. I just put my heloc in at Chase/WAMU. When did you put your in? I called yesterday and they said I would hear back in a couple days. Already starting trial payments for 1st. Dont know if that gives HELOC a priority for a workout. Ill let you know how it goes.

06-11-2009, 12:44 PM	#62 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward Been cash only since Oct/Nov 2008. Can't pay any of them anything even if we wanted to as it would show preference to one or the other. Both modifications have been in since Dec. 2008 or Jan. 2009. Were current until June 1st. Yes definitely want to wait for a mod. before filing. What did you do with your home when filed Ch7? I would think if you filed BK and didn't include the house in it that Chase doesn't HAVE to do anything for you? If you defaulted and foreclosed then you'd be responsible for the taxes and any money not collected. AND you already filed BK so then you'd have to come up with the money, right? Please keep me informed. If you don't me asking..what state do you live in?

06-11-2009, 12:58 PM	#63 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward I did list them (1st & 2nd) in my BK but was current and because there was little equity (under 50K) at the time, it was protected since it was my homestead. My payments already include taxes and insurance and WAMu has still been paying them even though I have not made a payment now in 1 year. I stopped paying the 2nd 3 mths ago. I am in oregon and non-recourse state. If I walk they cannot come after me for 1st and they can try on the 2nd but I have no money so cant get blood out of a turnup. I can always discharge in 2 years if I have to if it all falls apart. I dont have any money to settle with them on the second even if they offered it. Since so underwater, they really have no leverage on the 2nd. Did you re-file paperwork in April after Obama plan came out? I have ben working on this with WAMU since last July...and it hasnt been fun.

06-11-2009, 02:58 PM	#64 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward We had a sub prime then they modified us in late 2007 or early 2008 into a 5 yr ARM. (Payments went up $800/mo!) Nothing like refinancing from one bad loan to another. (DH had lost his job and took a paycut) When we sent paperwork in late 2008 they said we didn't qualify because they already modified. Then March rolled around and they called us saying we now qualified and next day FedEx delivered the packet. Been waiting since. Personally, I think they were waiting until we missed a payment to do anything. That's interesting about you including it in the BK and haven't paid and they haven't foreclosed on you. It's so confusing to me. So I wonder if I include it in the BK if we have to surrender the house? Couldn't we live in it until they modify the loan? If they do not modify the loan then we could walk away from it and not be liable for any monies? We haven't personally met the lawyer..we've talked to him and his paralegal several times and they are super busy. All our paperwork is ready to go in case of an emergency filing..as of now we are waiting. He'll meet with us right before we actually file.

06-11-2009, 03:24 PM	#65 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward Snapple (and anyone else who wants to jump in): These are VA's state exemptions (as I live in VA) If I am wrong please correct me. I think I get it now. Since my house is underwater by $100k, I can include the mortgage & HELOC in the CH 7 using the Homestead Exemption. So I can keep the home..IF I make the payments. Should I stop making the payments and they do not modify the loan we can walk away, let them foreclose and not have to pay any $$ or taxes? Married couples may double the amount of the federal exemptions. If you choose the second exemption scheme, under Virginia bankruptcy laws, you can generally keep: Your home, if you do not have more than $5,000 plus $500 per dependent in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages) One motor vehicle, if you do not have more than $2,000 in equity (today's value less costs of sale less payoff balances on all liens and mortgages) Wedding and engagement rings Family portraits and heirlooms, up to $5,000 in total value The family Bible A burial plot and any pre-need funeral contract, up to $5,000 in total value Clothes, up to $1,000 in value Household furnishings, including beds, dressers, rugs, appliances, sewing machines, pots and pans for cooking, plates and eating utensils, up to $5,000 in total value Pets Professionally prescribed health aids Tools, books and instruments of your trade, including motor vehicles, up to $10,000 in total value Farmers' equipment, including a pair of plow animals with gear; a wagon or cart; a tractor, up to $3,000 in value; two plows, one drag, one harvest cradle, one pitchfork, one rake and two iron wedges; fertilizer and fertilizer material, up to $1,000 in value Military uniforms, arms and equipment required by law or regulations Personal injury and wrongful death causes of action and proceeds ERISA-qualified pension benefits, up to $17,500 per year Public employee pensions Industrial sick benefit insurance Group life insurance benefits Cooperative life insurance benefits Burial society benefits Fraternal benefit societies benefits AFDC and aid to the blind, aged and disabled Crime victims', unemployment and workers' compensation Disabled veterans are entitled to a special exemption, up to $2,000 At least 75% of your earned but unpaid wages A bankruptcy does not wipe out voluntary liens, like mortgages and deeds of trust, or tax liens. So the lender still has the right to foreclose if you do not pay. If you pay, everyone is happy. Remember, the lender does not want the property; it wants you to pay regularly on the loan. Foreclosure is a last resort for the lender if it concludes it can't get the owed money any other way. So if the bank forecloses because we stop paying after the CH7 filing we don't have to pay taxes on the house when it sells ay auction or the difference in what we owe and how much it is worth? BTW, thanks for your help!!!

06-11-2009, 03:30 PM	#66 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward Sorry it took me too long to edit.

06-12-2009, 08:14 AM	#67 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward Pb, I think you have to pay taxes on the difference between what it was sold for at auction and what is owed. I am not sure that applies to the HELOC. I think only the first. This may vary from state to state. I HIGHLY recommend you have a personal consult with your BK attorney to make sure that there are no mis-steps on your part. You need to know exactly what you liabilities are of you choose certain scenarios or take certain steps. Just guessing or interpreting these statutes on your own is a mistake. It is worth the piece of mind to pay the consult fee. This could really cost you in the end if you make a wrong move.

06-12-2009, 08:24 AM	#68 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward Yep..we have an atty. I put an email in to him. I go on the bkforums as well and someone explained it to me over there. They say it's illegal to do a modification after a BK discharge. After you include the mortgage in your BK you basically do not have a contract with the bank because you included it so they can't modify then. UNLESS you reaffirm it first. The person came up with a good point...why would we keep a house that has negative equity of $100k? But if Chase/Wamu gives up a nice mod. with lowered payments...to make it more affordable and a fixed rate..we'd do it..probably.

06-12-2009, 08:58 AM	#69 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward Pb, I have never reaffirmed after BK and doing a modification so I am not so sure about how accurate that info. I would be careful as to what is legal and illegal per those bk blogs. This is why I strongly suggest one on one with BK attorney to go over all these details. I ask myself the same thing. Why keep a house with 100K negative equity? I understand lowered payments for 5 years only (in general). Outside chance of principal forbearance. I see 7-10 years before break even. In the end is it worth it when you pencil it all out? Tough decision. trying to separate emotional from logical.

06-12-2009, 09:20 AM	#70 (permalink)
Marie T Senior Member Join Date: Apr 2009 Posts: 431	Re: WaMu/Chase Mod Moving Forward As far as whether or not to "trust what the banks are telling us", when I spoke to the local CHASE guy this week, I told him that if WAMU/Chase really looked at what they would get out of house if it went to foreclosure since there is so much repair work that needs to be done, that WAMU should want to do a mod with me and not get the house back. He told me that, unfortunately, they sometimes only look at the house "on paper" or do an exterior appraisal (it looks great outside!) so what I thought would be a huge bargaining chip for my mod may not be at all. He also told me that CHASE doesn't want my house, that they look at it black and white, strictly as an asset (not a house or home) and there is no emotion in whatever they do.

06-12-2009, 03:02 PM	#72 (permalink)
Marie T Senior Member Join Date: Apr 2009 Posts: 431	Re: WaMu/Chase Mod Moving Forward I agree that it should be that way - my concern is that if they do not do an interior appraisal they will think the house is worth a lot more than it is and since we paid a huge downpayment they will use their calculator and figure they will come out ahead if they just foreclose. (we have a lot of structural damage that is not evident from the outside) We have lived here ten years and when we bought it my husband said this is our last house. If I was not emotionally attached to the house, we would have left a long time ago with losing my job and the structural damages (unfortunately could not sell it with the damages either) Most people today only stay in their homes 4 or 5 years and I have been thinking that the banks are probably counting on that with some of these 4% loans they are doing on the loan mods.

06-12-2009, 03:47 PM	#73 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward Marie, I know it's tough. I would be surprised if they did an interior appraisal which would probably cost them more. I totally forgot about the appraisal until some woman was parked outside my driveway taking pictures of my home as I pulled up into the garage. I have 5-7 foreclosures in my neighborhood. One right next to me and one across the street and one directly behind me as well. The one house was $799,990 and just sold at $299,999. We have 1.4 ac. and they had 2.5 ac. and same sq.ft. (4100 sqft) It would sure be nice if they brought our down to that! I am seeing the other side though and maybe you should think about too. If we have to we have to. SOme people say to look at it as a business decision, BUT you don't look at it that way when you buy it..you look at it as a home.

06-13-2009, 10:37 AM	#74 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Hi Guys, Marie - does your home have "uniqueness" that will make it desirable in the future? Ours does, and that is why we're hanging on. It really doesn't matter what anyone says it is worth, it matters what you can sell it for. When we bought our home, there was a bidding war that went $60K over the selling price. Things like prime location, great schools, view, privacy, unique home structure, landscaping.... matter to some people who have the money to pay for it. Every change we make to our home, we do with that in mind....fireplace in the master bedroom, waterfalls, decking, custom window sills, etc....but that is us...just wanted to share that perspective. If I lived in a track home with little uniqueness or desirability, I would probably let go.

06-14-2009, 03:26 PM	#75 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward On second thought, maybe I wouldn't. With a BK on the record, and no money for down payment, we probably won't be buying another place...I don't know...your home is your home as PB says..it is tough.

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