My situation is that we filed for bankruptcy in 2004. With a bit of hind sight and experience I realize that education of the process is the key, but at the time I was 24 and broke with a new baby to care for, so I just wanted it over and behind me.
In 2006, we needed a vehicle and had the idea of taking out a 2nd mortgag interest only to finance it. So we got a 2nd mortgage very (very) easily. But I thought it was because we no longer had credit card or any debt other than our 1st mortgage.
However, 2 or 3 years ago when we tried to get our first vehicle loan since we filed bankruptcy we were very surprised when the lender came back and asked for our home payment history and said that our mortgage was not on our credit report.
So, when we filed in 2004, our mortgage was not reaffirmed. To make it worse, when I called my mortgage company (several times in the last few years) they did not give me a straight answer but told me they didn't know what I was asking to call my lawyer. Then my lawyer told me to call the mortgage company and tell them that it had been reaffirmed. But I have checked my bankruptcy papers, it was not reaffirmed.
With the market drop in home prices, I have now been paying a mortgage on a home that is not mine AND that I still owe OVER market value (I owe 120K and it is worth 108K, I paid 140K for it 10 years ago). In additon, how was I given a 25K interest only second mortgage on a loan for a home I am not even personally liable for?
So can I walk away from my home? Is it mine if I ever actually pay for it? And what happens to the 2nd- I got it after the bankruptcy so what would happen if I just stopped paying it? Am i personally liable for the 2nd? What will that do to my credit, should I just forget about the 2nd, or maybe stop paying it and then try to talk them down to a settlement balance? It has an interest rate of 10.25%, it's with HSBC and I called twice to ask for a lower rate so I can start paying principal on it and the people that answer say they are only servicing payments now for HSBC loans but they are not lowering rates or anything.
And I know this forum is to help and not judge, but I just want to add that I support a family of 5 on one income and have learned that I will be losing my job. So it's not so much that I'm planning on walking just because, but I want to educate myself this time and make good choices. Any information, even if it is in the form of where I can find reliable reading material, would be appreciated.
