Hate to do it, need to give up home
Hi,
My heart is breaking and I am walking around like a lost sheep, but I don't see any other way out of this. I am behind on payments ans I know that any day now, the bank will start proceedings to take my home. Here's the short version of what I shared a few months ago.
Here's the situation. I hope I get in all the details. I filed for bankruptcy in April, it was officially confirmed in June. I did so because the bank was close to selling my home, I was already a step past foreclosure. The bankruptcy officially stopped the sale. I have an approved budget and trustee payments that I make every month. That payment covers the three outstanding debts that the court said had to be paid and could not be dismissed. All my other debts, other than my deferred student loans, have been pardoned. I must pay the arrears on my mortgage, condo fees and the balance of my lawyer's fee. That payment is now $1000 a month. My mortgage is now $1850. What was not taken into account is that for four months, I do not teach. I immediately called my lawyer and he said there was nothing I could do about payments. There was no room for negotiation. So for four months I have been at -$500, then the original trustee payment went up by $300 and my mortgage by $250. That puts me at -$1050. Never mind that I now have college expenses for my older daughter as well as school expenses for my younger one.
At this point, I have two options. I can come up with money to bring my payments up to date and have some funds set aside for a few months. Many companies will refinance 6 to 9 months after you file for bankruptcy. I have two that are holding my file until January. My lawyer said that he could help as well, but I have to wait. Anyway, a loan right now would serve as a "back-up" for the deficit I run every month. Also, it would help me to build up my credit for when I refinance. I can get a loan with the bankruptcy, but I need a co-signer. I looked into rates yesterday and depending on the amount I could pay as little as 120 a month for a 36 month loan. If I can do this, I keep the home, can refinance in a few months and pay back the loan. I get a clean slate and my trustee payment lowers because the refinance will take care of the arrears as well. However, I have co-signer.
The other option is moving, which means I let the bank take the home. That breaks the bankruptcy agreement (not a good thing) and all the debts that were dismissed become active again and I will owe them all. Also, the sale of the home can occur very quickly. I mightl still need a co-signer to rent a place, though since most rentals out here are homes, an owner might not run my credit at all.
So that's my situation and here are my questions. Do I let my lawyer know that I need to give up the home? How much time will I have to move? How will this affect the bankruptcy? Any other advice would be helpful. THANKS!!!!
Freaking out in NJ
My heart is breaking and I am walking around like a lost sheep, but I don't see any other way out of this. I am behind on payments ans I know that any day now, the bank will start proceedings to take my home. Here's the short version of what I shared a few months ago.Here's the situation. I hope I get in all the details. I filed for bankruptcy in April, it was officially confirmed in June. I did so because the bank was close to selling my home, I was already a step past foreclosure. The bankruptcy officially stopped the sale. I have an approved budget and trustee payments that I make every month. That payment covers the three outstanding debts that the court said had to be paid and could not be dismissed. All my other debts, other than my deferred student loans, have been pardoned. I must pay the arrears on my mortgage, condo fees and the balance of my lawyer's fee. That payment is now $1000 a month. My mortgage is now $1850. What was not taken into account is that for four months, I do not teach. I immediately called my lawyer and he said there was nothing I could do about payments. There was no room for negotiation. So for four months I have been at -$500, then the original trustee payment went up by $300 and my mortgage by $250. That puts me at -$1050. Never mind that I now have college expenses for my older daughter as well as school expenses for my younger one.
At this point, I have two options. I can come up with money to bring my payments up to date and have some funds set aside for a few months. Many companies will refinance 6 to 9 months after you file for bankruptcy. I have two that are holding my file until January. My lawyer said that he could help as well, but I have to wait. Anyway, a loan right now would serve as a "back-up" for the deficit I run every month. Also, it would help me to build up my credit for when I refinance. I can get a loan with the bankruptcy, but I need a co-signer. I looked into rates yesterday and depending on the amount I could pay as little as 120 a month for a 36 month loan. If I can do this, I keep the home, can refinance in a few months and pay back the loan. I get a clean slate and my trustee payment lowers because the refinance will take care of the arrears as well. However, I have co-signer.
The other option is moving, which means I let the bank take the home. That breaks the bankruptcy agreement (not a good thing) and all the debts that were dismissed become active again and I will owe them all. Also, the sale of the home can occur very quickly. I mightl still need a co-signer to rent a place, though since most rentals out here are homes, an owner might not run my credit at all.
So that's my situation and here are my questions. Do I let my lawyer know that I need to give up the home? How much time will I have to move? How will this affect the bankruptcy? Any other advice would be helpful. THANKS!!!!
Freaking out in NJ
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