It seems that if I post anything regarding our real estate post-discharge, the conventional response is "leave it to the bank".
We may find out later that we might have done better to "leave it to the bank". Right now that does not appear to be the best choice for us.
First, our attorney has repeatedly stated that a foreclosure in Ohio takes 18 months. On internet sites, I see 270 days. That's a long time after one's BK to wait to even be starting to "heal up" if one is hoping someday again to obtain a mortgage. Also, what I read is that a foreclosure keeps one from getting a mortgage for three years, in contrast to two years for a bankruptcy.
We know exactly where we want to live and are very hopeful that we may be able to get ourselves into a piece of real estate in that area when we are two years post BK. We also think prices will start to go back up just about then, or maybe just a little later after. Any and all of our "credit repair" efforts are directed precisely at this goal: a mortgage for an extremely modest retirement home in a very specific area.
The other factor here is honor. The short sale offer on Property 2 existed prior to our filing BK. Yes, we could have refused to sign one of the several contract extensions needed because BofA was not responsive, but, in our minds, the buyer hadn't done anything to justify dumping him. He did wait and wait and wait and even, finally, hired an attorney to deal with BofA. He wanted that property!
Would it have been easier for us to dump him? Yes, probably so. Would it have been right? Not in our minds.
Property 2, it appears, would have foreclosed fairly promptly. In the filing, we showed intent to surrender it. Once becoming educated enough to realize that BofA might not choose to foreclose promptly, we were even more motivated to complete the short sale. We do not want our names on it one minute more than is absolutely necessary.
Then property 1 is a century farmstead with a barn, pole barn, collapsed corn crib, metal outbuilding, and the primary farmhouse, a large Victorian in need of nearly every repair one could name (though everything in it works, which always surprises me). It had been on the market over a year when we bought it. We originally put it on the market after discharge in the fond hope of being able to expedite getting our name off the title by way of negotiating a deed-in-lieu with BofA. BofA requires a house to be on the market 90 days before they'll discuss a deed-in-lieu. We surely never thought anyone would make a serious offer on it.
Well, a young couple, perfect for the property, have made an offer. Several, matter of fact, and really, really want this property. A young couple who can put sweat equity into the place is exactly what it needs. So we're hoping to complete this sale so that the property will both be out of our names and also be into appropriate stewardship. Fixer though it may be, there are desirable attributes to this property, and it gives us both a good feeling to consider that it may be going into the hands of people who can do best by it.
As an aside, the likelihood of even acquiring a buyer for this property is so very slim that to have done so causes us to believe that this is certainly God working personally in our lives. We really try not to argue with God. (I defend your right to hold whatever level of belief or non-belief in any belief system, declared or not, that you choose. This is ours. Not entering into a discussion of religion or superstition or belief systems in general.)
Would it be easier to wait until BofA gets around to foreclosing on Property 1? Easier, yes. Would that help us in our quest to attain a future goal of modest real estate? Not hardly, as Property 1 is a ride through and the foreclosure would happen 270 days to 18 months after the last payment made in October 2009, setting us back at least that far from a day when we may reasonably hope to again acquire a mortgage.
It's all "what ifs", I realize. Maybe we won't ever find ourselves in a good position to acquire new real estate. Maybe the "rules" for getting a mortgage post BK/foreclosure will change (not entirely unlikely, IMO, given recent statistics on both). Still, we're attempting to divest ourselves of the debt and of the assets tied to that debt, both, and as expeditiously as possible. We really want a fresh start!
Mind that these are merely our choices based on what we've gleaned from all we've read and been told by our counsel. We are not attorneys, we are not real estate professionals. Everyone must make their own decisions based on what they believe to be the best course of action for them.