My sitter had huge medical bills the past few years and was forced to file bankruptcy last fall. It was recently discharged. The bankruptcy did not include his mortgage or a balloon mortgage that he and his husband took out when they purchased his home. he states that he was making payments for both loans every month without fail during the bankruptcy.
Just yesterday he received a letter from the Bankruptcy Court that indicated that a creditor was requesting his to abandon his property.
Does this mean that 1 or both of the loans are being called in spite of his making regular payments every
month?
I’m so worried for his, don’t want to see his lose his home. Is there anything that can be done? he is the best and honest person that is doing everything right, just having a long spell of terrible luck.
Mark M 1:00 am on February 10, 2010 Permalink |
This is strange. When you file for bankruptcy you include all your debts. Both the ones you are getting rid of, and the ones you keep, like a mortgage. The key is a balloon mortgage. During Bankruptcy, no one is allowed to do anything. After the bankruptcy is discharged, banks can act. For how many years was the balloon mortgage for? If a balloon mortgage is for 6 years, then it is for 6 years. At the end, you have to refinance or they will foreclose. Bankruptcy or no bankruptcy. If the 6 years are not up, you need to talk to your lawyer because the bank is trying to do an end run.
However if the term is up, you have to do something.
1. Stop making payments and make them kick you out.
2, More reasonable, talk to the bank, a real person. Explain to them you want to keep the house, and you want to refinance at a good rate. If they refinance at a good rate, you will reaffirm the debt and they will not have to deal with another foreclosed property.
3 If the bank will not refinance at a reasonable price sell the house.
4. If you can not sell the house because it is underwater, stop paying and make them kick you out.
Sadly, the bank is going to be stupid, and you will be kicked out. But it is not your fault.
Jared Bachman 1:00 am on February 10, 2010 Permalink |
Your sister doesn’t need advice on Yahoo, she needs a lawyer. I would reach out to the attorney who handled her bankruptcy case and ask for advise. If she didn’t file with a lawyer, I would advise she contact one who specializes in bankruptcy law to determine her rights.
The bank has lots of high paid lawyers on their side, and it she doesn’t have someone representing her, than regardless of what is right or wrong, it looks like the bank plans to have her removed from the property.