Need Advice and Opinions

[puddypie007]

Hi, I'm new here. I need people's opinions. Yes, I understand that it's not "real" legal advice, but while I wait for the lawyer to call back I need to fill my head with some advice.

We are in foreclosure in our primary res. with the 1st foreclosing and the HELOC is sure to transfer to personal liability when the thing is all done. So the breakdown is shown below.

Income is high at $190K
Debts are:
16K IRS
10K 401k loan (that we might be able to have removed due to the situation)
15K student loans
26K personal bofa loan
8K credit cards
25K car loan, car is worth about the same
120K HELOC that will be coming after us

In this case we don't want to keep our house, we want the bank to take it. We have problems with mold (very long story) and we are bursting at the seams here in a 2 bed condo with 2 kids. We are upside down 100K. We can't wait 5 years to get out of here, if the market even recovers by then.

We have tried to do a restructure of the 1st loan, but they won't give us any solid numbers. They told us they want $11K this week, and if they get it then they will "try" to reduce our payment $150 a month (which is sort of BS considering we're already paying $3300 and they can only reduce it $150). We've asked what might change if we brought more $ to the table, or whether it would change our principal or how much, and they refuse to tell us. They want the $ before they will tell us anything concrete.

We could try to stay. But if we stay there will be 2 more years of mold reconstruction (which is LOUD with the babes), and when we finally move we will have to rent our house at $1600 a month loss after the tax considerations. My husband gets raises each year, so it's possible we could make that work. Not a happy thing, but plausible.

We are halfway through our default period and have found a place that we want to live and rent. We realized last night that the HELOC would come after us for sure and that our only real option is chapter 13 if we want to move.

SO...

WHAT WOULD YOU DO? I want anyone reading this who has or hasn't gone through the process to please give me your opinion. Thank you so much!

[AngelinaCatHub]

My opinion for what it is worth: You make damn good money, yes. You have lived beyond your means, (I have too). Are you a candidate for a 13? Yes I believe but probably not a 7. If you can bail, would it not be nice to purchase a little place, and stockpile retirement monies. Trust me, it comes VERY FAST in your life that you find, your children are adults then your grandchildren are adults, and most of your schoolmates are dead. If I had youth, and know what I know now, ……………..just let your mind wander, and learn by reading all these peoples stories. Don’t miss the “stickies” on top of the forums. ‘Hub

[justbroke]

WHAT WOULD YOU DO? I want anyone reading this who has or hasn't gone through the process to please give me your opinion. Thank you so much!

Looking at you compared to me, I say that you've managed your credit much better than I did (and we are in comparative income brackets). I say this because you have very little unsecured credit (I have very well over $100K in unsecured credit.)

I'm guessing that your first mortgage balance is about $600K or so? (based on the payment.) With you being $100K+ upside down on the home, I agree that you should let it go.

What really is interesting, is that you'll probably end up in a 100% plan anyhow, based on my quick read. My quick look shows a DMI of $6K+.

Also, timing is everything. If you want to move, do it soon, as your credit will get worse with the foreclosure. (I moved prior to foreclosure happening and prior to filing bankruptcy. I did, however, move back into my primary residence because the appraisal came back in my favor and only under by $30K.)

So, in the end, my thing is... why file for Bankruptcy when you'll be paying everyone back (100%) anyhow? It's just a question. If you feel that you won't be able to deal with the 2nd and potential deficiency on the first mortgage (if your State allows it, and the lender pursues it), then Chapter 13 could be good.

However, you will be on a tight budget, and let me tell you as a person with income in your range... it's a different life.