Mortgage Question

[monkatom]

My chp 7 closed in March 2008. Our house was listed but we have continued to pay our mortgage w/o a reaffirmatikon agreemnet. We live in San Diego. A new job opportunity came about in Northern Virginia which I am thinking of taking. What are the chances I could get a loan? Also would my chances be better if I sold my house as opposed to walking away and trying to get a new mortgage?
Thanks

[Flamingo]

My chp 7 closed in March 2008. Our house was listed but we have continued to pay our mortgage w/o a reaffirmatikon agreemnet. We live in San Diego. A new job opportunity came about in Northern Virginia which I am thinking of taking. What are the chances I could get a loan? Also would my chances be better if I sold my house as opposed to walking away and trying to get a new mortgage?
Thanks

Well, there is no way you are going to get a "loan" if you recently filed Chapter 7 and then stop making your mortgage payments and let that house go into foreclosure. You will then have two huge big black marks on your credit reports - a Chapter 7 and then a Foreclosure...nothing could be worse and that will be on your credit for 10 years. Your best bet, as hard as it might be, would be to try to sell the house and find a place to rent in Northern VA. Does this new job opportunity pay relocation expenses? They should have a service that would help you find a place to rent also. Buying a house right now in your situation does not appear possible due to the Chapter 7 and this economy.

[CindyLou]

If you walk away from the house it should not show as a foreclosure. Once it shows included in BK, then it shouldn't change.

As far as getting a loan, you can forget that for now. Could you just rent? Usually you just have to pay an extra deposit.

[monkatom]

Since the mortgage was included in the BK then that would not change correct? Also if it appears we would take a loss on the sale of the house would it be best to walk away since it was IIBK? Will this have an effect on future mortgages since we "screwed" the industry as opposed to selling paying of mortgage even with a loss but showing the "industry" we made an effort?

I agree it looks like renting may be our best bet at this time.

[Flamingo]

Since the mortgage was included in the BK then that would not change correct? Also if it appears we would take a loss on the sale of the house would it be best to walk away since it was IIBK? Will this have an effect on future mortgages since we "screwed" the industry as opposed to selling paying of mortgage even with a loss but showing the "industry" we made an effort?

I agree it looks like renting may be our best bet at this time.

Your Chapter 7 was discharged earlier this year (March). It appears you have been paying your mortgage payments since that time and are not late. If you stop paying on your house they will eventually foreclose and all that information will be listed on your credit report. If you do go that route and also with your Chapter 7, as CindyLou states just forget about a loan. No matter how you try to sugar coat it, it is not a good situation and your credit is a mess no matter how you want to try to get around it. It may even be difficult for you to find a place that will rent to you as many in this economy after filing BK and/or going through a foreclosure are finding out. Anytime there is a BK and/or a foreclosure, repossession, etc. on your credit reports, it can have a bad effect on any future credit and/or mortgages. That is just reality. What works the best is the passage of time and paying all your bills on time and slowly building credit after your BK discharge. Now you have the house issue and what to do there. The best thing for you to do is try to sell it if you can; if you can't and you still want to take that job, you may have no other choice but to walk away and just deal with the whole situation and the future as it presents itself to you. You have to make the personal choices that will work the best for you financially as you will have moving and other relocation costs associated with that new position and settling you and your family in a new location unless your new employer pays for most or all of those expenses.

Best of luck to you and I hope things work out for the best.

[chloe0724]

I live in Northern VA. The rental market is booming here because of all the forclousures. Were you planning on moving inside or outside the beltway?

[monkatom]

Flamingo,
Question since the mortgage is listed as included in BK on my credit report if I walk away will that show as a foreclosure still? I thought once it was included in my Chapter 7 they could not list as foreclosed? I do not think I can sell my house for what I owe so I had planned on maybe walking away from the house. If this will cause another ding on my credit and effect my ability to get future loans then i will most likeley short sell and pay off the difference.
Thanks
Chloe
Not sure as I am not that familiar with the area. Most likekly arlington, alexandria, or Fairfax? Wife is looking for a teaching job with Fairfax county

[StartingOver08]

monkatom, you did not reaffirm your mortgage according to your post. Your credit report is suppose to show all outstanding items at IIB and a ZERO balance that were in your Ch 7.

You should contact your attorney, but according to your information the mortgage is already IIB. The bank can not simultaneously show it IIB and in foreclosure. You would have a problem if you had reaffirmed the mortgage, but you did not. Contact your attorney to verify that you did not reaffirm and can now walk away without any repercussion.

Flamingo is in a different situation. She filed for a 13 many years ago- not a 7. There is a difference on the reporting between a 13 and a 7.

BTW, a foreclosure and a short sale have the same impact on your credit report. You all ready used the 'big gun' - the BK. Fortunately you did not reaffirm the mortgage on the house. Really, I think if you talk to your attorney you will find that you can walk away now because you did not reaffirm.

[chloe0724]

Mon,

It's going to be tough finding a teaching job right now. My mom's a teacher in Prince William County, and all the local counties are having to reduce their teaching staff and enlarge class sizes because of the loss in tax revenue with the forclosures.

I hope she has the best of luck..

[monkatom]

My mortage shows as IIB and has a zero balance. I did not reaffirm. I contacted my attorney and he said I could walk away from the house and it would be sold at a foreclosure sale. He said this will be another black mark against my credit but since I already filled BK it is not a big deal.

I understood that since it was IIB it would not show? Is he wrong or did I misunderstand the rules?

Chloe yeah she has been looking in Virginia and they have a few openings now. The good thing is her district here will hold her job for two years so if she has trouble getting a job she can come back.

[Logan]

I think that it would not show up as a foreclosure just as my car did not show as a repossession after I turned it in 6 months after BK.

The chances of you getting a loan at this point is slim. A down payment and a low DTI would be your only chance. Call a bunch of brokers in your area and see if there are any that think they could get it done.

Logan