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Ask HCLegal Your Own Question
HCLegal
HCLegal, Attorney
Category: Bankruptcy Law
Satisfied Customers: 423
Experience:  I have filed over a thousand bankruptcy cases.
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In a chapter 7, if I am representing myself and want to keep

Customer Question

In a chapter 7, if I am representing myself and want to keep my house that is in foreclosure, what are the parameters in working out an arrangement with the bank on the mortgage. Are they regulated to allow a payment arrangement that I can afford or are they not regulated at all regarding this?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  HCLegal replied 4 years ago.

HCLegal :

Hello and thank you for your question here on Just Answer.

HCLegal :

If you are already behind on your mortgage payments when you file a chapter 7 bankruptcy, the bankruptcy will only delay the foreclosure process. Once the bankruptcy is over or the mortgage company has been granted relief from the stay they can then continue with the foreclosure process.

HCLegal :

To answer your question about whether or not they are regulated to work out an affordable payment for you, the answer is NO they are not.

HCLegal :

You can apply for a loan modification and often times the fact that you filed bankruptcy will help you as you will no longer have any unsecured debts.

HCLegal :

Your best course of action is to communicate with your mortgage company your desire to do a loan modification and then work the modification process.

HCLegal :

DO NOT SIGN AN REAFFIRMATION AGREEMENTS ON YOUR MORTGAGE. Doing so will bind you to the mortgage after your bankruptcy is over and if they foreclose they will still be able to come after you for any deficiency balance.

HCLegal :

Please let me know if you have any questions regarding my answer or if you need any clarification.

HCLegal :

I hope you found my answer helpful, and if so please do not forget to click ACCEPT, this is the only way that I will get credit for assisting you– I receive no credit for helping you unless you actually press ACCEPT, even if you already have a subscription. By pressing the ACCEPT you will not be charged any more money. If you need more information, please use the REPLY button and I’d be more than happy to answer to your satisfaction. There is no fee for follow up questions before or after accepting, if we continue the conversation.

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JACUSTOMER-i9z6po9p- :

So if I signed my own created reaffirmation agreement that took $52000 off the $143000 debt owed and made a suggested arrangement to pay $543 a month on a new 30 year fixed $92000 like a short sale and signed it but do not have the banks signature on it, and filed it with other paperwork, will this be a potential option or likely not? The home has repairs needed and they are lucky to make a new arrangement for $92000 they won't be able to sell it for that.

HCLegal :

NO... the mortgage company has to agree to the reaffirmation agreement.

HCLegal :

You cannot just make up your own with a lower amount owed and file it.

HCLegal :

I hope you found my answer helpful, and if so please do not forget to click ACCEPT, this is the only way that I will get credit for assisting you– I receive no credit for helping you unless you actually press ACCEPT, even if you already have a subscription. By pressing the ACCEPT you will not be charged any more money. If you need more information, please use the REPLY button and I’d be more than happy to answer to your satisfaction. There is no fee for follow up questions before or after accepting, if we continue the conversation.

HCLegal :

Please remember to press the ACCEPT button as this is the only way that I will get credit for assisting you today. It will not cost you any more money it just tells Just Answer to pay me for my time.