We filed chapter 7 about a year ago. We didn't reaffirm anything, but continued to pay the first and second mortgages. We stopped paying on the 2nd mortgage about 8 months ago and have now negotiated a settlement on the 2nd for about 15% of the balance.
We just received their agreement letter, but I wanted to see if you all thought the wording looked acceptable.
Here is the text (with personal details excluded)
i know zip about settlements but from what i'm reading you have 8 negative months for a mortgage? i wonder if you can add a PFD clause in there or if that even matters?
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There are 0 neg months, the mtg and note were disch in Ch 7 Bk. No further reporting following disch. One could attempt to PFD but I don't think it is too big a deal since the Bk is now a yr old. What is of much more importance here is the SUPERB discount that the op was able to negotiate for settlement; Congrats on that one!!!!
BTW, I think the letter and terms are fine since you have no personal liability remaining there is no recourse once the lien is disch'd, so you be home free then.
BTW, who was the lender if you don't mind mentioning?
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ah i understand now, i forgot that in order to sell the house the lien needs paid/removed and that BK has no effect on the saleability of the house. i couldnt think of why someone paid a lien that was IIB.
brain is working now
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Thanks.
The lender was a local credit union.
We continued making payments after the Ch. 7 because we wanted to keep the home.
Financially, that didn't make much sense because we were upside down by about 60k (the amount of the 2nd).
Who knows how many years it would be before the home value goes up 60k.
Settling for 9k is a big relief. It puts us close enough that the house value could easily go above what we owe in a year or two.
We're happy with it and the credit union gets substantially more than the zero they would have gotten if we walked away.