Post-BK options for upside down mortgages

[Sweetpea3829]

Gopher...the previous poster means they will saying they are renting out the first home.

Lots of homeowners began "buying and bailing" in recent years and so to cut down on that, lenders have refused to provide mortgages to people that own a first home, unless you were in the process of selling that first home. You *could* get around that by claiming you were renting out your first home.

The problem is that lenders are catching on to this trick too and are requiring quite a bit of evidence that you are actually going to rent out the first home. They're also requiring that your income be able to support the mortgages for both properties. I don't know much more about it than that...we briefly encountered that scenario when we were researching our post bk home-buying options.

[locolady]

They way it was explain to me is we have to show 6 month's cash reserves to cover the original home mortgage. Plus we must have a signed lease form the new renter for the old house. Now I will have the money issue (d/p escrow reserves closing cost)covered as we are now at 21% DTI after the BK and saving every penny we can. The straw renter would be my step daughter who has a different last name. We would rather she purchase our home now through a SS and we stay here as her legitimate renters. We would pay the new loan and she be taking the tax write off. But she can't see the forest for the trees she is a single women in the mid 60k income and taxes are eating her up. I told her after three year we'd purchase the house back and cover all the closing cost for her but young people can be so dense. But now B of A want us to go through HAMP again we did 3 month trail payments but our income ia to high we will not qualify for a payment reduction. I think we will play the Hamster game and save my money until they take the home. Even if they foreclose in 6 month that 10.5k in our bank account. We looked at a nice 55+ apartment (950 month) last weekend and we both agree we like the idea more and more.