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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am a NJ resident for past several years. I am considering

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I am a NJ resident for past several years. I am considering bankruptcy. I am working full time and can support my mortgage. There is no significant equity in the house which is my primary residence. Bought it 1 year ago.

If I am current on my primary residence mortgage payments, can I still loose the house? If I file for bankruptcy what will happen to my residence?

cfortunato :

Hi - my name is XXXXX XXXXX I am a Bankruptcy and Consumer Protection attorney here to assist you.

cfortunato :

If your home has no significant equity, filing a Bankruptcy will not cause you to lose your house.

Customer:

I am sorry, I just saw this message.

Customer:

So what will happen to the house? Will the bank / lender honor he BC as long as I am paying my mortgage?

cfortunato :

You would be risking the loss of your home only if your home had at least $22,000 or more in equity.

cfortunato :

And this amount is doubled if you are married.

cfortunato :

Nothing will happen to your house as long as you continue to pay your mortgage.

Customer:

I am married, so for example, if if the loan is 260000 the house is now worth 300 K, I am still OK.

cfortunato :

Your mortgage will not be affected by your Bankruptcy filing.

cfortunato :

Yes - if married, your available homestead exemption is $45,950.

Customer:

I recently applied for loan modification, no result yet but expect the answer this month, will that make any difference?. I will not be filing BC for at least 6 months.

cfortunato :

The bank will not process your loan modification request after your file a Bankruptcy, so it is better to complete that process before you file a Bankruptcy. mortgage - whether or not Once you file a Bankruptcy, the Bankruptcy will not affect your mortgage, whether or not your receive a modification.

cfortunato :

Typo: the last sentence should not have the first 4 words.

Customer:

My understanding is that if I am approved for loan modification, there will be trial period and once that is successfully completed, then they will make it permanent. Not sure how long this Trial period last. Any idea? Chase is the bank.

cfortunato :

Is your current mortgage less than one year old?

Customer:

It is one year.

cfortunato :

It is unlikely that you will be able to get a loan modification with a mortgage so recent.

Customer:

First statement dated 11/15/2012 payment due date was 12/01/2012.

Customer:

I should have waited? for a year? Once rejected, can I reapply for the modification?

cfortunato :

In general, loan modifications are for mortgages from before 2008.

cfortunato :

They are for properties that are under water - where the house is worth less than the balance of the mortgage.

Customer:

But that is Govt supported programs. I was told that Chase has its on programs. I am hoping to be benefited by one of those. But right now, all I needed to know that approved or not approved for my request to modification, this will not changing the fact that BC will not cause me to loose my house, correct?

cfortunato :

If your house is worth more than the balance of your mortgage, you may be able to re-finance your mortgage at a lower interest rate - but you will unlikely be able to get a loan modification.

Customer:

The interest rate is already a low rate 3.75.

cfortunato :

That is correct - filing a Bankruptcy will not cause you to lose your home.

Customer:

As always, thank you very much.

cfortunato :

The only concern for a Bankruptcy filing is the home's equity.

cfortunato :

You're welcome!

Customer:

None exist may be less then 10,000 As I just bought the house 1 year ago

cfortunato and other Bankruptcy Law Specialists are ready to help you