@KaosKitten wrote:
My chapter 7 bankruptcy will be discharged in approximately 2 months. I am behind on my mortgage payments and the mortgage was included in the bankruptcy (as it was a debt) - but my intention has always been to continue to make up the payments and become current as soon as possible. Unfortunately, it will most likely not be before the discharge as I am behind at least three months. I was just told by my mortgage company today that unless I can either...
1 - get caught up on the payments before discharge, or
2 - get a loan modification
That I will lose my house when my bankruptcy is discharged. Is this correct? My loan had not gone into foreclosure prior to filing for bankruptcy protection. I live in California and my attorney ( a reputable one in the area), never mentioned that this would happen or I may have made a different choice. One of the reasons for filing bk was to save my house - did I make a mistake?
Thanks
The note you signed when you obtained your mortgage probably contained several acceleration clauses and at least a few of them can involve default even though you may have never missed a payment. That a bank cannot foreclose if you continue to pay is a myth.
Unless you meet your mortgage holder's demands or negotiate terms that are more favorable for you, they can foreclose.
The good news is that depending on how much equity you have in your home and your state's homestead exemptions, you may be able to keep your home. You need to talk to your BK attorney about lien stripping.
