What happens if you tell your mortgage company that you are planning on filing bankruptcy?
My husband told our mortgage company that he will be filing bankruptcy. The lady asked whether or not he has filed yet. I am concerned that was the wrong thing to do. Does anyone out there know? Is there something they can do to us now? =/
Probably nothing.
The reason the lady asked whether or not he has filed already is because lenders are required to follow different rules when dealing with mortgages where the borrower is currently in bankruptcy. For this reason, most mortgage lenders have a separate bankruptcy department that services mortgages of borrowers who are in bankruptcy. The person with whom your husband spoke probably was just trying to determine whether your mortgage needed to be moved into the bankruptcy division or not.
Many debtors "say" they are "going to" file bankruptcy … and then maybe they do and maybe they don’t. Or maybe they don’t file for many more weeks or months (or years).
For the most part, lenders don’t really care what borrowers "say" about their intentions to file bankruptcy. Once the lender gets the bankruptcy paperwork from the court, then it follows its own internal procedures for handling debtors who are in bankruptcy.
I wouldn’t worry about it.
Start foreclosure proceedings and kick you out before your bankruptcy takes effects. Start looking for a place to live