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Is There a Way to Settle Mortgage Debt Quickly? – David

“Dear Steve,

I had just filed for bankruptcy and own my house and have lived here since 1988 and am looking for a way to get out of paying my mortgage as the economy is so bad no jobs are coming. Self employed contractor

Is there a way to settle my mortgage debt quickly?

David”

Dear David,

The best way to handle mortgage debt on a house you can’t pay is to hand the house back to the bank and then include the residual debt owed in bankruptcy. However you may not be able to do that since you just filed bankruptcy. But talk to your bankruptcy attorney to see if it may be possible to amend your filing.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

READ  I Discharge My Mortgages in Bankruptcy and Now Want to Settle Them. - Carla



About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  • Citi modified my loan in 12/2010 by simply lowering the rate to a fixed 4% and making it fully amortized vs. the ARM I had.  My home value is now $405k but I owe $670K on it to Citi and I have a HELOC with another bank for $96k.  Citi offered to do a short payoff but after I went through the process, they said my income was sufficient to afford the modified loan.  However, they never asked for expense information.  Is there a way to make them make good on their “offer” to do a short payoff.  The bank that has the HELOC approved a new loan to cover the short payoff.

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