Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification
This is a common question,
the mortgage you have with the bank is still valid, and you would have to pay the debt, the bankruptcy court would receive the funds in most cases,
Typically the lender will provide you a new address to send the payments,
if they sold or assigned the mortgage to another lender, or it is now with the court.
Does it have anyway to help to reduce the o/s loan in this case?
It is possible they may try to work out a modification, however their bankruptcy filling,
in most cases has no real affect on you,
It looks like they gave me a new company to send the money to. I still don';t know if it is legitimate company to send the money to
How to apply to modidfy the loan now as the o/s loan is higher than the value of the propery?
you should contact the new company, and see if they will work out a deal with you,
the new lenders may do this,
In terms of a modification the best program is the HAMP program, through the government
It sent the money to the previous company but the payment was sent back to me. How does it affect my credit?
It should not in any way hurt your credit, if it does you can sue them.
They have to provide you the proper address to send the funds.
If I don't pay the mortgage to the new company, what would happen?
eventually the will try to foreclose, however in the meantime they may try to modify the loan for you,
if you miss a few payments, they may think you need financial assistance, and work out a deal,
What should be the best approach in this case as the mortgage company goes bankruptcy?
I would pay the mortgage, and try to get a modification from the new lender,
if that fails, and you cannot pay the existing mortgage,
stop making payments and work out a modification,
if that fails, you can file a chapter 13 in a year,
will it cost more in that case based on your previous experience?
and force the lender to accept a payment plan for the arrears or missed mortgage payments,
what do you mean a modification? reducing o/s loan?
yes, you would try to modify or reduce the loan
As I still have some other properties, will they go after other property if i fail pay the mortage on this property?
that would take time,
they would have to sue you and obtain a judgment against you,
you should consider changing the deed on the other properties to protect the,
In other to negotiate with the lender, Can I do it by myself or need help by professional?
you should try yourself,
if that does not work you can hire an attorney, but most can do this by themselves
As I am not living in US, will the makinghome affordable program works for non citizen & non resident mortgagor/borrower?
It would only apply to a primary resiidence,
not an investment property
What would be the best soluction to deal with an property with a high o/s mortgage and line of credit ?
overvalued while I still own other properties with good credit profile.
I meant overvalued property due to the market down turn.
If you cannot do a modification or refinance, you may want to sell the property.
through a short sale,
Short sale? applicable to non-resident?
a short sale can be given to any party,
will it affect other properties?
It could hurt your credit, it will not affect your other properties
does it mean that I am able to get rid of the overvalued properties through short sales and does not affect other properties? will the lender go after the balance due to short sales?
no, as partof a short sale the lender agrees not to sue you for the balance.
How to apply for a short sale?
or the strategy to get a short sale?
you just contact the lender
and advise them you want to do a short sale,
a broker can do this as well,
Could I stop paying the monthly mortgage pymt?
What is your usual advise to deal with valued properties to your clients?
yes, you can stop,
i would suggest a short sale
Thank you very much for your time and patience.
Good luck, and if satisfied with our service please provide us with positive feedback.
very much. Thanks
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).