How can I save my home in a bankruptcy? 16 Answers as of June 19, 2013

I have been behind on my mortgage for over 1 year with my banks and as investor. I had a discharge of Chapter 7 bankruptcy in May 2011. There is no summons yet but I expect it any day. I cannot really afford house but want to stay as long as possible. What should I do?

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Law Offices of James Wingfield
Law Offices of James Wingfield | James Wingfield
You could, potentially, file a Chapter 13 bankruptcy. While no new discharge is available, you are able to create a plan to repay your mortgage arrears. With that said, you will not be successful with the plan (and the case will be dismissed) if you are unable to propose a confirmable Chapter 13 plan, which will include payment of all of your mortgage arrears over a period of between 3 and 5 years. In order to propose such a plan you must show (at a minimum) adequate income to support not only your plan payments but your normal monthly mortgage payments.
Answer Applies to: Massachusetts
Replied: 10/5/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Well..... if you could afford it a Chapter 13 would let you get caught up but you would have to make the payments as they come due. If you can't get a loan modification.... you will be moving eventually. You will not get a summons. You will get a "Notice of Default" and 90 days after that you will get a "Notice of Sale". On the date in the notice sale, (which will be in an additional 20 days), the house will be sold.
Answer Applies to: California
Replied: 10/5/2011
Grace Law Offices of John F Geraghty Jr.
Grace Law Offices of John F Geraghty Jr. | John F. Geraghty, Jr.
You had elected Chapter 7 which is a liquidation and does not protect the home. I would Deed it back to Lender in lieu of foreclosure and would help your credit score.
Answer Applies to: Georgia
Replied: 10/4/2011
Ashman Law Office
Ashman Law Office | Glen Edward Ashman
Unless you work out a deal with the bank, you should call a mover.
Answer Applies to: Georgia
Replied: 10/4/2011
Attorney at Law
Attorney at Law | Douglas W. Harold, Jr.
If you are not making your payments and can't afford to catch up the arrearage, the house will ultimately be foreclosed and you will have to move. The bankruptcy discharge will not help you keep your house, although it will keep you from being sued for any shortfall on the mortgage after a foreclosure happens. If you want to stay in the house for as long as possible, some mortgage companies (but not all) will work with you to allow you to rent the house back for a fair market rental for a period of time after the foreclosure. If you can't afford that, or if that option is not available, than you can drag out the process by refusing to leave even after the foreclosure has happened. Under those circumstances, the mortgage company may offer you money to move out by a pre-determined date, provided that you take care of the house in the meantime. This keeps the mortgage company from going to the expense and delay of an eviction proceeding, which can take a long time and cost them money. This is called "keys for cash" and is is quite common following a foreclosure.
Answer Applies to: Virginia
Replied: 10/4/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    After you receive your bankruptcy discharge there is no automatic stay as to foreclosure of your house.
    Answer Applies to: California
    Replied: 10/4/2011
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    Saving your home in bankruptcy requires that you file a chapter 13 bankruptcy to cure the default. You have filed the wrong type of bankruptcy to permanently stop a foreclosure. A chapter 7 bankruptcy only temporarily stops a foreclosure and although it discharges the mortgage obligations, it does not prevent a mortgage company from eventually foreclosing on the real estate and eventually evicting you from the premises if you are in default on your mortgage obligation. You might want to hire an attorney to fight the foreclosure. Some attorneys specializing in foreclosure defense have had success in litigating issues, such as standing and proof of ownership of the note and mortgage.
    Answer Applies to: Colorado
    Replied: 10/3/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You could file a chapter 13 case.
    Answer Applies to: California
    Replied: 6/19/2013
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Bankruptcy to save your home is no longer an option.
    Answer Applies to: California
    Replied: 10/3/2011
    Heupel Law
    Heupel Law | Kevin Heupel
    Unfortunately, you are at the point that the options have run out. You might list the property to short sale, which might provide some additional time in the house, but it is best at this point to plan your move.
    Answer Applies to: Colorado
    Replied: 10/3/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    You options are limited because you just recently finished a chapter 7. You should have filed a chapter 13 to make up the payments. You should try speaking to your lender to see if a loan modification is available.
    Answer Applies to: Washington
    Replied: 10/3/2011
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    When you get served, you should see an attorney who specializes in foreclosure defense who can keep you in the house while the foreclosure is being litigated in state court and possibly get you an affordable loan modification as well. If you do not "answer" the summons when you receive it, then you will lose legal rights and the foreclosure will happen faster.
    Answer Applies to: New York
    Replied: 10/3/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Have you applied for a loan modification? That is really the only way that you can keep your home and at the very least will delay foreclosure. There are ways to delay foreclosure, including filing under Chapter 13 to halt a foreclosure sale which will cost you to hire a lawyer and make trustee payments and probably mortgage payments and trying to do a short sale if the bank agrees to delay foreclosure why you market the property, but the only long term solution is a loan modification with payments you can afford. If that is not possible then you will sooner or later lose the home and trying to delay the inevitable may become more expensive and psychologically disturbing than just letting the house go and moving on.
    Answer Applies to: California
    Replied: 10/3/2011
    AyerHoffman, LLP
    AyerHoffman, LLP | David C. Ayer
    You should consult an attorney to determine if you qualify for a loan modification. You may be able to restructure your mortgage in a manner which will make it more affordable.
    Answer Applies to: Massachusetts
    Replied: 10/3/2011
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Yes you can.
    Answer Applies to: Florida
    Replied: 6/3/2013
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