I am debating between ch13 and strategic default on a house with underwater 1st and a 2nd HELOC coming due soon (no other debts).
One issue is that is a possible tipping point is that for the future possibility of getting into a reasonable house, I would be taking various credit hits and new mortgage problems depending on the choice.
It is my understanding that ch13 is better that way: I might strip the lien on 2nd or pay it off in three years, take a BK on my credit report and then build up from there. no foreclosure on record should I seek a mortgage in the future, and by the time I'm done in three years, my first should be even or even I might be in the money slightly.
While, a default would be really bad for future mortgages: but the upside would be in three years I would have saved up some money, whereas with the 13 I would be even.
This is post ch7 so deficiency judgements are not in the picture, and I definitely afford my first and also willing to pay in 13 or otherwise something on my second, but I just can't deal with 70k underwater on the 2nd. My family needs a future.
Am I right that a ch13 is way better than a foreclosure, in the way I outlined above? Any other special considerations?
One issue is that is a possible tipping point is that for the future possibility of getting into a reasonable house, I would be taking various credit hits and new mortgage problems depending on the choice.
It is my understanding that ch13 is better that way: I might strip the lien on 2nd or pay it off in three years, take a BK on my credit report and then build up from there. no foreclosure on record should I seek a mortgage in the future, and by the time I'm done in three years, my first should be even or even I might be in the money slightly.
While, a default would be really bad for future mortgages: but the upside would be in three years I would have saved up some money, whereas with the 13 I would be even.
This is post ch7 so deficiency judgements are not in the picture, and I definitely afford my first and also willing to pay in 13 or otherwise something on my second, but I just can't deal with 70k underwater on the 2nd. My family needs a future.
Am I right that a ch13 is way better than a foreclosure, in the way I outlined above? Any other special considerations?
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