Legal Question in Bankruptcy in Michigan

Home Mortgage

My wife and I have a ARM that is due next month to change to a much higher rate. our house payment with escrow will increase to $2,264.00 a month payment. We can not afford this kind of payment. Unfortuantly we have over many years refinance our home to the limit, also with a second note to boot. We have credit cards, and a not so colorful credit history. I will be like to be able to retire from my place of employment in under 4 years. I have 33 years of employment in with the same employer. My wife is a at home grandmother, for our five year old granddaughter. We are both 51 years of age & seem to have exhausted all means of getting a lower house payment.

This coming January 1, 2008, we will have seven years from our past bankruptcy.

If all else has fallen, can we legally walk away from our house and the first and second mortgage obligations.

Thank you, I hope I have given you enough information to give an answer to.

Asked on 4/27/07, 12:04 pm

3 Answers from Attorneys

Max Rosenberg Rosenberg, Miller, Hite & Morilla, LLC

Re: Home Mortgage

Can you enter into a forebearence agreement with your mortgage company?

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Answered on 4/27/07, 4:07 pm

Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: Home Mortgage

You cannot file a Chapter 7 until 8 years have passed since your last Chapter 7 discharge under the new Bankruptcy laws. However, you probably can file under Chapter 13. You need a consultation with a bankruptcy attorney. Under certain circumstances, you can walk away from the second mortgage in a Chapter 13 by turning that debt into unsecured debt. You can contact me at 248.679.1552 for a consultation.

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Answered on 4/27/07, 6:00 pm
Regina Mullen Legal Data Services, PLC

Re: Home Mortgage

Sorry, but this really isn't something you're going to get an answer to online.

Your home and retirement hinge on it,--go see a local bankruptcy lawyer, as well as someone who is knowledgeable about elder care and retirement.

Your situation is, unfortunately, not unusual and someone should have a workable solution for you.

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Answered on 4/27/07, 12:42 pm

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