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Foreclosure and CH 7.

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by Argh!, Mar 30, 2009.

  1. Argh!

    Argh! LoanSafe Member


    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!

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