Housing advice

[billjacobs]

HI,
I am hoping to get some thoughts on a couple options we are contemplating.
Currently in a 5 months into a chpater 13 that isn't confirmed as of yet becuase our 2nd mortgage hasn't filed a claim. Pretty much just paying the car, mortgages, attorney, trustee and arrears on the house since we haven't paid since Dec 11. Owe 70K more on the house than the CMA suggested selling it for. House needs more work than I can afford, mostly cosmetic, but some electrical and plumbing issues.
I talked with our attorney and I guess these are our options:

Surrender the house and stay in the 13

File a Ch 7 and surrender the house

Keep the house and stay in the 13.

One one hand I would really love a complete fresh start and just file a 7 and walk away from everything, but my biggest concern is finding a place to rent.

I would love to hear some thoughts.

Thanks!

Bill

[panda]

Hi Bill, not sure where in Washington you are, but we filed a chapter 7 in Hawaii, and were discharged Feb of 2011. We then moved to Washington to the kitsap county area, rented in a large apartment complex for the last year, then just rented a home this month. We did not have any problems with renting either of these, and the apartment complex has a company they go through who will guarantee the deposit for $85.oo so you do not have to put any deposit down, if you qualify, which somehow miraculously we did, so we moved in with just the first months rent. I also though it might be difficult, but so far have not had any problems. No issues with the house, just needed first and last, I did explain our situation to our landlord, who was very understanding as she has had money problems before.

[ValleYum]

Waves at Panda!

I miss Kitsap so much.

[billjacobs]

I love Kitsap too! Would love to live out there again, but not really commuatable for me.

Panda, Thanks for sharing. We are in western washington..just a county over from you!

[greenthinker]

Hi Bill,
We are in Mukilteo, near the Boeing Everett plant, and planning to surrender our home, as well. I've been browsing the rentals on craigslist from time to time, and see plenty of listings that indicate that they care more about stable employment/income than credit history. So, I don't think there's too much to worry about.

Good luck!

[billjacobs]

Thanks greenthinker, best of luck to you too!
I think we are going to do it and I am almost excited about a new life!

[spidge]

If there expensive repairs consider the 7 and move, but that is only my opinion. If you stay with the 13 to save the house you may not be able to do the repairs and more repairs may come your way. There are many things to consider like tax benefit and does your mortgage compare to the cost to rent.
I say this because we chose to stay in the house and do the 13. The house needs many expensive repairs and it stresses me out a bit. Roof leaks, plumbing is scary, termites, etc...what was I thinking. The mortgage with tax benefits was less than rents in my area so it was a heavy decision. The way we look at it is after the 13 is complete how many trustee payments will take to get us a new roof, replace/repair transportation, etc... We just need to get through the 13. What's five years? A lot! How long is your plan?

[billjacobs]

Thanks for the reply Spidge,

Our plan is 36 months, but not confirmed yet.
The two biggest repairs needed in my house are electrical and plumbing, neither of which I am any good at.
Its a tough call either way, so I just stress about it.