QUESTION
Is there any way to save our home after it was included in a bankruptcy?
Asked on Apr 21st, 2013 on Foreclosures - California
More details to this question:
My husband and I filed for chapter 7 bankruptcy and included our mortgage. We moved out of the home August 2012, however, the bank has not even begun foreclosure proceedings. If we had known it would take this long, we would have stayed and not include our mortgage in the bankruptcy because I graduate from college May 2013 and will be quadrupling our income; so we will easily be able to afford the mortgage. We would have to do a modification of some kind for the late payments and fees, as we will not have a lump sum to catch up. Any advice would be appreciated.
4 ANSWERS
If the bank has not begun foreclosure proceedings, and you are still the record owners, you could move back in the home or rent it out. That is, of course, unless there is something to the contrary in the bankruptcy orders. You could also approach the bank about either a new loan on the home, or a short sale.
Answered on Apr 24th, 2013 at 1:19 AM
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You may be able to convert to a Chapter 13 and/or complete a loan modification. There a many factors to consider to determine if this would be in your best interest.
Answered on Apr 24th, 2013 at 1:03 AM
I assume the lender got relief from the automatic stay in the bankruptcy proceeding. So, even if you had left the mortgage out of your Chapter 7 plan, the result would have been essentially the same. If you still want the house, you could try to negotiate a deal with the lender for reinstatement of the loan. It would be up to the lender as to what sort of payment plan it would be willing to accept.
Answered on Apr 23rd, 2013 at 3:31 PM
Your mortgage was mostly likely not discharged in the bankruptcy. Unless your income has "quadrupled" presently, a bank will not modify the mortgage based upon future income. Your income quadrupling is speculative at best. If the bank is not presently foreclosing, maybe you should wait for your income to increase before you attempt to modify the loan. Otherwise you should consider short selling the property.
Answered on Apr 23rd, 2013 at 3:31 PM