I purchased my house during the bubble. The morgage is severely upside down. I was able to secure a loan modification and it has made monthly payments manageable. I have some major debt problems and am looking at filing for bankruptcy.
I know that I would be allowed to keep my home if I reaffirm the loan. Because of the dimished value of the house (as well as a second mortgage), I do not wish to do this.
SO, the question is: If I file for bankruptcy and am up to date on the mortgage payments, will the bank let me stay in the house if I continue to pay? (I assume this would absolve me of any continued long-term financial responsibility for the house.)
Thanks for all you do, Steve:)
Let me see if I have this straight, what you want to do is include the mortgage in a Chapter 7 bankruptcy and discharge it but continue to live in the house by making the mortgage payments. Is that right?
I have talked to a local bankruptcy attorney about doing a Chapter 13 bankruptcy to stay in your house but put your other debts on a reduced payment plan?
Please post your responses and follow-up messages to me on this in the comments section below.