I Had a very bad year last year. My customer went out of business owing my small cont. company 100K. Needless to say I had to close my company and lose over 1 year income. I could not pay my mortgage for 4 MO now they served me forclose papers. I have a sub prime mortgage and they call offing me a deal cald a mortgage Mod. I dont owe any outher bills But the mortgage on my Home. They seem to be playing Games. Should I just go for a 13?
2007-03-10 07:40:42 · 4 answers · asked by skillwithtools 1 in Business & Finance ➔ Credit
Chapter 13 isn't going to do you much good if your only outstanding debt is the house. The debt of a house doesn't get discharged. You still have to pay it if you want to keep the house.
Boy. If bankruptcy worked for getting rid of mortgages, damn near everyone I know would be filing.
What are the terms of the loan modification? You didn't give that info so it's a bit hard to figure out if they're playing games or not.
2007-03-10 07:47:58 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
If you go bankrupt, file your bankruptcy under Chapter 13. Chapter 13 permits an US resident to reorganize and restructure their finances. It allows you start afresh and get your finances back on the track. The bankruptcy court will supervise and authorize the entire process of overhauling your financial situation.
While filing for bankruptcy under Chapter 13, you have to draw up a plan of action meant to pay your dues within the next 3 to 5 years and submit to the bankruptcy court. You should clear your dues as much as possible at frequent intervals. Filing under Chapter 13 will protect you against the undue pressure exerted on you by your lenders to pay your debts.
The only drawback is that your bankruptcy will affect your credit score. It is retained for the next 10 years. So you might find it difficult to get any credit during that time.
2007-03-11 11:15:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Your last options should be a bankruptcy of any kind.
You lender is trying to work with you, check out what type of modification they are speaking of. It might be beneficial to you and save your home without spending additional money.
They are not playing games with you, they are attempting to allow you to keep your home. Work with them and at least see what they are offering.
It might be something you can live with.
You might also see if they can give you a forbearance agreement,if the modification does not work out for you.
Are you in a better position now where you can now assume the mortgage payments? That is a good sign.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-10 15:52:31 · answer #3 · answered by Skip 6 · 0⤊ 0⤋
yes go ahead go for it . It will help you get back on your feet I wish you Good Luck
2007-03-14 13:47:40 · answer #4 · answered by pattibcacl 6 · 0⤊ 0⤋