I filed Chapter 7 in October of 08, and I was laid off in December. I planned on keeping my house, but it seems unlikely now. I did find a new job but it pays less then my last one.
I never signed a reaffirmation agreement on either of my mortgages which is with the same lender. (Same lender, but someone else services the 2nd)
Could it work if I write a letter stating what my
A) House was worth XXXX when I bought it
B) was worth XXXX when I took out a 2nd
C) It is now worth XXXXX
D) There are XXXX houses in foreclosure in my neighborhood alone
E) There has been XXXX short/foreclosure sales in the past 18 months
Then I ask for a new mortgage covering the old 1st and 2nd, for YYY amount (essentially forgiving the upside down portion)
Otherwise I live rent-free 4-6 months, and wait out the course of the foreclosure.
If they say no, and I have to walk away I have a few questions.
#1. Do I pay my property taxes by myself
#2. Do I pay my HOA dues?
#3. Do I pay me sewer bill?
#4. Since I never re-affirmed my mortgages I assume I am not on the hook if the trustees sale does not bring in enough money. Is this correct?
#5. My 2nd is automatically taken out of my checking account (terms of the note) If I choose to walk away how do I prevent this? Do I simply leave no money in there, and pay the once a month overdraft/nsf charge?
#6. When I am contacted by my lender do I stall saying I don't have the money, or do I tell them the truth and that I am walking away? Can they contact me anyway since I did not re-affirm?
#7. Do I need to amend my Ch 7 paperwork as it said I intended to keep the house.
Thanks in advance for any help!