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Charles, Home Owner in Bakersfield, CA

Can i get my mortgage reduced, being that i have went bankrupt and would like to re-sign but the property value is to low for origanal amount?

Asked by Charles, Bakersfield, CA Sun Apr 22, 2012

Iam not recieving realestate credit until i resign, the home does not appraise for what is owed, iam already clear of the debt,

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Sounds like you need to discuss this with your bankruptcy attorney. The verbage I believe you need to be clear in your questions is to "re-affirm" the debt (not resign). You may be looking for a loan mod & Ch 13 banruptcy is a form of loan mod. I belive you'll have to qualify under HARP2 to make the new payments and your debts must not excee 31% of your income as just one of the factors. You can keep your home in banruptcy here in Fla provided you continue to make & keep the ALL the mortgage payments current I do not know if the same law applies in CA. Your lender would need to agree, the other creditors too and the BK trustee would need to approve the deal. Please consult your bankruptcy attorney, this is not a question that a Realtor is licensed to answer.
0 votes Thank Flag Link Mon Apr 23, 2012
It is very unlikely that any lender will reduce the amount owed on your original mortgage loan because of variations in market value of the property, especially if you still have the financial ability to pay.

Remember that your original promise to pay the amount borrowed (your note) was not contingent upon what the home would be worth in the future. If this were the case, very few people would ever be approved for a mortgage loan because the downpayment requirements would be astronomical.
0 votes Thank Flag Link Sun Apr 22, 2012
understood, however in the question the key is, "already bankrupt on property therefore not legally liable for original mortgage"
Flag Fri Apr 27, 2012
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