18 months still hasnt foreclosed!!!

[need_peace]

There's more to our story, but our previous home had both loans with Countrywide. There was a major decrease in income and increase in expenses during those times, so we had to stop paying for this home and include it in bankruptcy chapt 7. the 1st, 2nd, and a hidden 3rd lien.

It has been 18 months and the bank still hasn't foreclosed this house. We haven't lived there for a while. Things are getting better financially, but of course, not with the monthly payment that was enforced before we stopped making payments.

We called in Countrywide and they said we have to physically live in the house to get any kind of modification.

Is this correct, we can still modify our loan even after bankruptcy? Will the second and third lien be out of the picture if we can get back in the house?

The house is worth 180,000-210,000 and we owe 500,000.00.

The place we are staying at is going to be foreclosed on soon. Talk about bad luck. The only good thing that has happened is the birth of our baby!

Please, if you have any advice, or familiar with my situation, I hope you can share with me?

Thank you.

[Justme89]

Did you reaffirm the home in Bankruptcy and has that bankruptcy been dismissed/closed?

Something doesnt make sense here, if you did not reaffirm that house in bankruptcy then you would owe absolutely nothing on it. If you are still in bankruptcy then they can not proceed on a foreclosure without asking for permission/relief from the bankruptcy judge to take full ownership of it so that would explain why they havent done anything yet.

Yes, it is my understanding you have to live in the home. But if you are planning to reaffirm one home and let the other go, (assuming you are in active bankruptcy now) the bank can always decline to reaffirm and not allow you to keep it. And you can not negotiate any deals to modify with them while in bankruptcy it would actually be illegal from what I understand and would have to go through your attorney and be approved by the judge.

I guess you need to explain a bit more clearly because everything I said could or could not apply to you based upon clarification.

I am not an attorney and do not have credentials in the area of BK Law.

[Justme89]

It is my understanding that in order to work out a deal you would have to request the bankruptcy be dismissed, move back in, then proceed with a modification, and then declare chapter 7. But it will probably be difficult because with owning 2 homes NACA will not help you and that leaves you at the mercy of CW unless you can refinance or take advantage of another program. And that would also depend on who your investor is in the home you want to keep. I would think also that anyone hoping or intending to keep their home would hold off on bankruptcy a few months anyway to see how this legislation works out in Congress with a bankruptcy judge being able to modify the loan also. In the end that may only apply to Chapt. 13 but could involve 7 also, who knows? That is just my opinion.

[need_peace]

Bankruptcy was discharged in July 2008.

[Justme89]

So you did reaffirm the house? Imperative that you find out who the investor is on the home you want to keep! That makes all the difference right now because some are willing to work with people and have their own programs. Countrywide seems to be very forthcoming with that information lately if only about investors, I think you should call and ask. If they dont tell you, call back and ask a new customer service rep.

[Justme89]

Sometimes you can NOT reaffirm and keep making payments, technically you will own it if you pay it off, but if you walk away... you owe nothing because it was covered in the bankruptcy. Reaffirming a debt is a legal and written document you sign to agree to continue to pay for it. Did you do that on both homes?

[need_peace]

no i havent. I will call them in the morning to find out. Thank you so much for the replies and sharing this info to me.