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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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My ex foreclosed the house in May, 2013. His name was on the

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My ex foreclosed the house in May, 2013. His name was on the first mortgage. My name and his name were on the second mortgage.He is the primary borrower and I was the co signer. When the house was on shortsale negotiating, we didnt' pay the mortgage. Foreclosure was happened when the bank and I were negotiating to pay off the payment in half at that time. As soon as home equity line of credit(second mortgage company) found out that the house was foreclosed, they told me that the could not negotiate with me anymore and the loan would be charged off. The second morgage company advised me to call their recovery dept and negotiate with them. I called the recovery dept. They didn't have the file yet until Aug.2013. In Aug, when I called them, they told me that the account me and my ex had were filed bankrupt by my ex. So they said they would not do anything with me because the account is filed for bankruptcy.
I looked for the internet..and all internet site showed if the house was foreclosed or if the one part of the account holder filed the bankrupt, the bank will come after the second account holder. Also, I was not able to buy the house for 7 years or 3 years because the homeloan was filed for bankrupt and also the house was foreclosed. The bankruptcy lawyer (I met one time) told me the second loan is like credit card, I should pay.
I called the bank, they said...bankrupt is still processing and it will be over by Nov. 2013, then they will let me know. They can't gurantee to do anything.
I checked the Credit Karma and it showed the second home loan was closed unpaid.
I read an internet site, they said I needed to negotiate (if there was charged off account, if I am lucky) and ask the bank not to show the history of forclosure or bankrupt in my credit history. I asked the bank if they would hand over this account to the third party after bankrupt is finished. They didnt say any.
My questions are
1. Is there possibility that I can negotiate with the bank to pay off and request the remove the history of not paying or foreclose of the house. In the Credit Karma, there was no history of foreclosure in my credit but the loan was closed unpaid.
2. Is there anyway that I can borrow loan next year?

cortrightlaw : Unfortunately you are not going to be able to remove the negatives from your credit report as the missed payments, foreclosure and unpaid second are events that actually occurred and are accurately reported on your credit report. Even if the second decides to negotiate a payoff on the debt the foreclosure on the first and the missed payments will still show. At this point you would be better served by re-establishing your credit with positive credit and on time payments.
Customer:

That means the bank will not try to negotiate?

Customer:

Or they will not ask me to pay?

Customer:

Does that mean I have to wait for 7 years to get homeloan?

cortrightlaw : No you could be eligible for an FHA loan after 2 years but you would have to actively work to rebuild your credit score.
Customer:

My credit showed closed unpaid-bkt.

Customer:

some said 7 years..

Customer:

Thanks.

cortrightlaw : Good luck, please take the time to rare my response
Customer:

What if bank ask me to pay the balance and I started to pay..then..would that be helpful to get a loan before 2 years?

cortrightlaw : That will not likely help, you could pay te hole balance and that would not even help unless they agreed to take everything off your credit, but you would still have the foreclosure.
Customer:

After my ex's chapter 7 bankrupt, will the bank ask me to pay the remaining balance of the account(home equity line of credit account)?

Customer:

Or after the bankrupt was completely finished, the home equity line of credit account will be totally closed and I have no obligation and bank will not ask me the payment?

Customer:

I heard banks sue debtor if they don't pay their unpaid debt.

Customer:

I am worried if that happened after my ex's chapter 7 bankrupt is done .

cortrightlaw : It could go either way sometimes a non filing spouse or xspouse gets a benefit from the filing spouses bankruptcy am the creditors do not pursue the non filing spouse. But since you did not file you are still liable for the debt and they can come after you. You really should go meet with a bankruptcy lawyer to review your complete financial situation in detail as it might be in your best interest to file bankruptcy yourself now. Depending on your current credit report and score it could also help improve your credit situation sooner.
Customer:

I don't think I need to go bankrupt.

Customer:

I have car loan which is 2.6% interest. My credit score used to be 781 before my ex foreclosed a house and filed for bankrupt.

Customer:

Now my score is 680. I have not had any missing payment at all..and I had paid credit card debt 11,000(which my ex spent under my name).

Customer:

I used to have 20,000 student loan but this year I received federal government loan forgiveness. Government paid 17,900. I used to have 2 student loans but now one was totally paid off by the government and I paid the remainning balance so no outstanding debt. I currently have only car loan. I don't think bankcrupt is my option.

Customer:

My only one unpaid payment is this loan which my ex filed for bankrupt.

Customer:

Oh well..

Customer:

Thank you so much for your help

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