Keep house or not?

[bkstuff]

OK- If we decide it is not in the best interest to keep the house....and let's say we let the house go into foreclosure (first mortgage). If we would need to file a CH13, how is the 2nd mortgage classified? I mean, is it considered unsecured? In WA state 2nd mortgages CAN go after deficiency balanced and we know this CU does.

SO, is it better to file a CH13 only if they sue us....or is it best to file prior to the foreclosure happening so that we could let home go in the CH13? I am not sure how this would affect whether or not 2nd is secured or unsecured??? I'm tired...hope this makes sense to someone

[espo1357]

OK- If we decide it is not in the best interest to keep the house....and let's say we let the house go into foreclosure (first mortgage). If we would need to file a CH13, how is the 2nd mortgage classified? I mean, is it considered unsecured? In WA state 2nd mortgages CAN go after deficiency balanced and we know this CU does.

SO, is it better to file a CH13 only if they sue us....or is it best to file prior to the foreclosure happening so that we could let home go in the CH13? I am not sure how this would affect whether or not 2nd is secured or unsecured??? I'm tired...hope this makes sense to someone

2nd is unsecured I am sure (not sure that if you have equity, that it would be considered secured) if you are underwater.

If you want to let the home go, then just file and get it over with before they sue you. You might qualify for a 7 and then it is done.

The advantage of waiting is that you can file at the last minute, and perhaps buy yourself a few more months of rent free housing.

Regardless, the chapter 13 will protect you, and when you file, you will good. It seems getting it over with makes the most sense, as you can get on the road to recovery much faster.

good luck.
don't quit.
things will work out.

[ShooFly]

I'm pretty certain the 2nd is secured against your house. That's why it's called a 2nd mortgage.

In any event, avoiding the foreclosure papers can help your credit in the long run, but that depends on the rest of your file and bills.

If your credit is already trashed, you can wait it out and get a lawyer to help you stall. I have lived in my house for almost 33 months with no debt payments. I know that's unreal, but believe me, I've been very grateful for it due to unemployment.

If you're going to give up your house in the long run... you can still stretch it out, live there, and file a chapter 7 in the end (for unsecured debt only).