Walking away Post ch. 7

[troubled]

Hi,

Our two mortgages were included in our Ch. 7 BK last August. We haven't paid our 2nd mortgage since then. We were trying to negotiate and got nowhere with Bank of America (who has since sold it to a company, that must like not getting paid the $93,000) . About 3 months ago we stopped paying the first (about $242k left on that one) after figuring we had no hope of working the 2nd out and no desire to keep paying close to $3000 a month on a house was appraised during the BK at $241,000 (and needs about $30k in work).

We have found an apartment and are planning on moving out the end of the month as we want to get situated during the summer and before school starts in the fall.

Is it worth trying to get a Deed in Lieu so we can start the clock on rebuilding our credit on our timeframe or just wait until they go through with the foreclosure? Can we even do a deed in lieu with 2 mortgage companies?

Thanks so much!!

John

[newbie2]

Hi,

Our two mortgages were included in our Ch. 7 BK last August. We haven't paid our 2nd mortgage since then. We were trying to negotiate and got nowhere with Bank of America (who has since sold it to a company, that must like not getting paid the $93,000) . About 3 months ago we stopped paying the first (about $242k left on that one) after figuring we had no hope of working the 2nd out and no desire to keep paying close to $3000 a month on a house was appraised during the BK at $241,000 (and needs about $30k in work).

We have found an apartment and are planning on moving out the end of the month as we want to get situated during the summer and before school starts in the fall.

Is it worth trying to get a Deed in Lieu so we can start the clock on rebuilding our credit on our timeframe or just wait until they go through with the foreclosure? Can we even do a deed in lieu with 2 mortgage companies?

Thanks so much!!

John

The first won't do a deed in lieu, because it has to be free of other encumberances (the 2nd would be the "other encumberance).

[Coldplay]

Hi,

Our two mortgages were included in our Ch. 7 BK last August. We haven't paid our 2nd mortgage since then. We were trying to negotiate and got nowhere with Bank of America (who has since sold it to a company, that must like not getting paid the $93,000) . About 3 months ago we stopped paying the first (about $242k left on that one) after figuring we had no hope of working the 2nd out and no desire to keep paying close to $3000 a month on a house was appraised during the BK at $241,000 (and needs about $30k in work).

We have found an apartment and are planning on moving out the end of the month as we want to get situated during the summer and before school starts in the fall.

Is it worth trying to get a Deed in Lieu so we can start the clock on rebuilding our credit on our timeframe or just wait until they go through with the foreclosure? Can we even do a deed in lieu with 2 mortgage companies?

Thanks so much!!

John

Hi there,

Why wouldn't you stay as long as you could and save your money ? You wouldn't be making a house payment and you'll be better off when you finally have to make your move. Are you moving within the same town ? Not sure what State you are in but you could realistically save anywhere from 6-9 months worth of payments.

Best of Luck to you !

Also, did you reaffirm your mortgages when you filed Chapter 7 ?

[brad10281]

We're in the same situation. We haven't made a payment on our 1st or 2nd in about 7 or 8 months and have yet to hear from either bank. I want to find a place to rent just to get all of this behind me but I also like saving the cash while I live in my house for free.