House help!

[boomerkae]

Some of you may have seen my previous posts. My husband and I are way underwater on our house, about $25K on the first and we have $110 on a second.

We had made a decision to let our house go as part of our BK, which is going to be filed tomorrow.

Our housing option was my father - he was going to buy a place and we would all move in together. We were going to pay him rent.

Just found out that he can't get preapproval - he has his own new business, and doesn't show an adjusted income - most was deducted as expenses. So while he has great credit, he lacks the proof of income. I have poor credit, great income.

We are going to try to see if we can work out something somehow together. I'm not holding my breath.

Our mortgage payment is insane. As part of BK, can the court get the mort company to lower payments somehow if we have to stay?

Anyone have experience getting a house to rent after BK or in the early stages?

DH and I are a little worried that we could be homeless.

Note - our mort is still current if we roll it into BK and stop paying does anyone have any idea how long it would take for the mort company to kick us out?

I was seeing a glimmer of hope - and it's crashing down again.

[DebtEnder]

Can you afford the 1st mortgage payment as is for now? If the 2nd is wholly unsecured then they will most likely NOT move to foreclose as they would pay all expenses to simply pay off the 1st mortgage. So long as the 1st stays current (and partially unsecured) then you should be ok.

[boomerkae]

Can you afford the 1st mortgage payment as is for now? If the 2nd is wholly unsecured then they will most likely NOT move to foreclose as they would pay all expenses to simply pay off the 1st mortgage. So long as the 1st stays current (and partially unsecured) then you should be ok.

We are currently negative DMI. We are making the payments, but they are killing us. There probably are a few places we can cut expenses some; but we really are paying too much for it. I'm always juggling payments; even after not paying CCs and the second mort. Christmas has nothing to do with it - I've spent $100 on presents and that was over two months.

Funny - when we did our prefiling credit counseling, it reported that we spent too much in misc - which included our daycare. It advised us to cut almost exactly the amount of daycare.

[bladerunner]

just a thought...we are living in our foreclosed home 14 months and counting. But, our state also has the highest foreclosure rate, Another narrative on renting. Five years ago my sis-in-law purchased a $500,000 home with $100,000 cash down payment. Well, long story short , her business tanked(in construction) and she short sold her home for, terrible, $120,000. She is now a renter in her previous home. Of course, she could have stayed in the home if the bank had short sold it to her or even reduced the principal, but banks would rather you foreclosed. The bailed out banks, relish selling the home to an investor. Investors are gobbling up the homes here in Vegas paying cash. But because so many residents are unemployed, the cash investors are finding it difficult to find renters.

[momofthree]

If you were going to live with your dad anyway, why not do it the other way around? Keep the home, strip the second mortgage so that you're only $25k underwater, and then have him pay you rent rather than the other way around?

[boomerkae]

If you were going to live with your dad anyway, why not do it the other way around? Keep the home, strip the second mortgage so that you're only $25k underwater, and then have him pay you rent rather than the other way around?

Interesting thought that I don't think any of us have considered. Probably because we all sort of want to leave the area we are in.

Also, if he rents from us, wouldn't I have to report that as income? Couldn't that effect my payback?

[momofthree]

Interesting thought that I don't think any of us have considered. Probably because we all sort of want to leave the area we are in.

Also, if he rents from us, wouldn't I have to report that as income? Couldn't that effect my payback?

Since you're at a negative DMI, it probably won't affect it by much if at all....

[tobee43]

what we did once we found out we couldn't get a loan mod and we knew we both lost our jobs and could no longer afford our house of 33 years...we stopped paying our mortgage and we were instructed to do what awaiting the answer on the loan mod....however, right in the middle of the bank reviewing our application, the bank, chase, served us with foreclosure papers....so...we had already put money aside and had 30 days to answer the summons...

we immediately, prior to anything hitting our credit report (90) days etc. ran and got a place ....in another state tho..we just packed up the car drove down and rented it on the spot...it took us still a few months to make the move, but we had secured a place so we were not worried...it was a hard journey...go back and fro...and going from over 4000 sq fit to just about 2000...but we just did it....and moved to florida where there are many rentals available and since the economical climate is so bad renting is fairly easy....

best of luck where ever you go! we are NOT sorry...even losing our house after all those years...this was the BEST thing we did other than file bk....

it will get better...

[chicagoannie]

Cash talks when renting. I speak from experience. I had to find a place FAST for myself and my children due to job less and a pending eviction. I offered 2 months (first and last) plus the security deposit to my landlord and immediately secured a home. And this without being employed.

[tobee43]

Cash talks when renting. I speak from experience. I had to find a place FAST for myself and my children due to job less and a pending eviction. I offered 2 months (first and last) plus the security deposit to my landlord and immediately secured a home. And this without being employed.

good point and right on!!! cash speaks louder than credit many times...especially today!

[boomerkae]

good point and right on!!! cash speaks louder than credit many times...especially today!

That's good to know. We have been worried the idea of renting - if that's what it comes down to - how we would do it with crappy credit. Good to know it's possible and that cash does speak!

[tobee43]

That's good to know. We have been worried the idea of renting - if that's what it comes down to - how we would do it with crappy credit. Good to know it's possible and that cash does speak!

and now for the BETTER news...we have been here for about a year and the owner is going to HOLD THE MORTGAGE!!!!!!!! so we can buy this house!!!!! it worked out well for us and it will for you also...i know it's really scary...but you'll be fine!

[boomerkae]

and now for the BETTER news...we have been here for about a year and the owner is going to HOLD THE MORTGAGE!!!!!!!! so we can buy this house!!!!! it worked out well for us and it will for you also...i know it's really scary...but you'll be fine!

Thanks! We are thinking that a new place will just help out the new start that comes with the bankruptcy. Fingers crossed.

We just dont know how much more rock bottom we can get.

[tobee43]

Thanks! We are thinking that a new place will just help out the new start that comes with the bankruptcy. Fingers crossed.

We just dont know how much more rock bottom we can get.

well....it only goes UP from where you are now...so as hard as this is, you will be fine...really...we lost our home after 33 years....brought our kids home from the hospital through that front door and watched them leave for college from the same door....

home is where the heart is...your memories will always be with you...not within any walls that shelter you! things will get better!!!!