Bankruptcy our mortgages.

May 7th, 2009 by Questions

My husband & I are filing for bankruptcy but are very terrified that they will take our home. We have already consulted with a trustee, and they have determined we have no equity in our home (appraised at $182,500, 1st mortgage $148,000 and 2nd mortgage $28,000). Due to the economy, we have taken a 30% pay cut and are unable to pay the rest of our over-extended credit but are still considered high earners (5,000 plus a month). We are easily able to make both mortgage payments, taxes & utilities. Our first mortgage is held by a bank that we also hold a $20,000 line of credit plus $10,000 in visa. The line of credit and visa will be affected by the bankruptcy, so my question is: can the bank get pissy with us and break the mortgage contract forcing us to sell or refinance and will we lose our home??? If the bank doesn`t want to carry our mortgage anymore, will any other bank refinance the mortgage if you are in a state of bankruptcy???? My trustee tells us as long as we don`t default on mortgage payments and follow the bankruptcy requirements, they will let us keep the mortgage but I have read that they can give you the boot. Help!!!!

Posted from: Manitoba


One Response to “Bankruptcy our mortgages.”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If you have already consulted with a local trustee about the filing of a bankruptcy and are currently up to date with your mortgage then you don’t have to be concerned. I agree completely with the advice the trustee has given and don’t see any issue as long as you stay compliant with the mortgage payments.

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