Don't make the same mistake I did.....advice after your BK

[LSUTiger32]

Since you have good income and a low DTI how about doubling down on your payments?

Logan.....I do have a good income and low DTI but DTI does not count gas (80 mile commute per day to work), food, utilities....the list goes on. I am paying extra to the debt we do still have (school loans) using the DR snowball method. Just no way I could double on house payments right now. I love the idea though....just get rid of the loan.

[LSUTiger32]

I don't understand what your ethical issue is. The bank could foreclose, but has elected not to. Until they do, you own the house. What is unethical about living in or renting out property that you own?

I decided to quote you in this response because I actually laughed after a phone call and remembering this conversation.

I called the entity that holds the lien on the home in question. Remember, I am years out of my BK7 discharge so I owe them nothing....ever. When I called, I explained the situation and asked why they never took possession of the property. She said, and I quote...."we don't want it, do whatever you want with it." I think you could hear a pin drop. Here I am worried about morality and ethics and they seriously could not care less. Later in the discussion with her she actually told me to rent the property out and I could send the money to them if I wanted to pay down the balance or I could keep it. She said since I filed BK on it I don't owe it to them and she said that until they ever decide to do something I am the owner of the property.

Like you said, why feel bad about renting out what I own?

Question though for everyone: She sent me an e-mail about doing what in effect looks like a short sale. I find a buyer, get an appraisal done and sell the house for what it is worth. Then she said they would release the lien on the property and I believe it is worded to mean that they would do that for whatever I got for it regardless if it covered the balance (it won't). So what happens then? Is that a way out without affecting me or are they going to slap a fresh foreclosure type thing on me anyway? Remember, all I am trying to do is re-fi my existing home.....I just can't do anything that starts the three year clock over again.