File today...stressed over new home

[ethrjock]

After many months and perhaps years of knowing I needed to file we filed for Chap 7 last week Nov 18, 2006 . Nothing I am very proud of. Going in I had a credit score of 725 and had NEVER been late on anything. We have not gotten the case number yet but my atty says it will be soon.

I am including my home in my Chap 7 so I have to find a new place for us to call home. According to the atty our 341 will be late December and we will need to be out by Feb 1. Our BK wont be final until many months after that.

Here lies my worries . By the time I am ready to move into a new home my credit will be a wreck. Renting appears to be my only option (correct me if I am wrong). Who will rent to folks like us that is in the middle of a messy financial bankruptcy?

What has others on this board that has "been there done that" experienced in regards to finding their family a new home?

Thanks

[CindyLou]

Many places, especially private individuals will rent to you but will require an extra month or so of rent as a deposit. My advice is be upfront about your situation and ask them what is needed to get you in the apt.

[ethrjock]

Thanks Cindy. I am going to be looking for something more affordable too since my home and heloc is costing me 50% of my monthly take home. The homes that we can fit into and that are for rent in my area are kinda slim. I need 4 br and a basement to keep all my stuff in.

I have been looking but coming up short. Maybe a call to a a real estate agent can help?

[pambysue]

Hello Ethrjock
I, too have been in the financial wreck that you are experiencing. I have not filed BK yet. I am waiting until January. But, my home is in foreclosure. I found a nice duplex, 3 bedrooms, 1 & 1/2 baths, full basement..and they let me keep my dog!! I couldnt bring myself to go from having a full house to an apartment, so the duplex was perfect for me & my daughter! The real estate people who own the duplexes were extremely nice and I had NO difficulty renting from them. I have been employed for 20 years with the same employer and I think they looked more at THAT then my credit history. After all..if I dont pay the rent..they can evict me. The fact that I told them that I desperately wanted to 'start fresh' and get my life on track also helped. People are willing to give you a chance if you are honest with them.

[CindyLou]

Maybe you can get a storage building for some of your stuff and be able to rent a more reasonable apartment. Or now maybe is a good time to downsize.

[ethrjock]

Downsizing is definetly in order for us. Never again do I want to be shakled in chains by a house payment above my means.

The dilema with storage space is that it's not cheap either. I have been seeing 3br 2ba homes for rent for $1000 but then I have 4 kids. 2 live with me and 2 visit every other weekend. One of which is my son and he cannot sleep in the room with the girls. I hate to make him sleep on the couch but that might be my only option for a year or so.

Does anyone know what the chances of doing a Lease purchase? Do they pre-qualify you assuming you are going to buy the home at the end of the lease? There are several 4 bedroom lease purchase homes around.

[lrprn]

Does anyone know what the chances of doing a Lease purchase? Do they pre-qualify you assuming you are going to buy the home at the end of the lease? There are several 4 bedroom lease purchase homes around.

Until your Ch 7 is discharged and closed, no lender will touch you because whatever you owe them could be added to your bankruptcy and wiped out. And for some time after discharge, the only agreements you will get will be sub-prime, which puts you at much higher risk for becoming house-poor again with no possibility of using Ch 7 to get out of it.

It is very hard to think about not owning your new living space in some way after owning a house, but for now do you best to focus on recovery from your very difficult financial situation. Renting isn't the end of the world, and will allow you the one thing that really rebuilds your credit effectively....time....so you can eventually return to the house market in a few years qualifying for a mortgage that fits easily within what you earn.

And kids are almost always far more resilent and understanding than we give them credit for. Sit each one down and share what's going on, then enlist their help in your financial recovery. Your son sleeping on the couch won't be the end of the world either, but if it's really bothering you, get your son one of those portable, inflatable beds to use when he's staying with you. They are relatively inexpensive and actually very comfortable to sleep on.

If you truly want to recover and not ever live as a financial hostage to a house again, then that requires changing the way you think about money and how you spend it. It's a very humbling experience, but necessary. Let the desire to keep up appearances go and focus on what truly matters - holding your family together.

[CindyLou]

My friend is in the same situation as yours....he only has 2 bedrooms now due to downsizing. On the weekends that his kids visit, HE sleeps on the couch so his son can have one room and his daughter the other. Just a thought.....

[BK'd-Betty]

Hey - ever slept on one of those AERO beds? They're actually pretty awesome and very handy to have around.

When we moved, since we moved cross country, we were without our furniture for a week. We bought two Aero Beds (cheaper than a hotel room for us) and they were just as comfortable as my bed!!

I loved it! I just had to keep my cat off it!

Now, when the kids come from NY - we all trade off between the king size bed and the aero beds!!!

We downsized from a $500,000 home to a 1 bedroom apartment. Our expenses went from $6k a month to $1800. We're living like college students again (we have kids older than college age), but you know what? It's fun, we saved a ton of money and I've lost 30 pounds by not eating out!

It was hard to give up our home, but you know, about 3 weeks ago a light fixture in our apartment fell from the ceiling - and guess who fixed it - not us

There are advantages to renting - renting is EASY living!

[pambysue]

Amen Betty! I had a similar occurence Last week, my bathtub in my duplex wouldnt drain and the downstairs toilet wouldnt flush (I moved from my house that is in foreclosure on Nov 10th). I called the landlord and they were here within 15 minutes! While they were fixing it, a pipe burst and water went from the upstairs tub down into the 1/2 bathroom downstairs. They replaced the pipe and will be in this week to fix the drywall. It was a WONDERFUL feeling NOT to have to foot the bill! That was a BIG problem with my house. I was always paranoid something would break and I would have to come up with the money to fix it..which I havent had..so, things remained broken
Renting and downsizing is not so bad!!! I am much more relaxed now. And I will be even MORE so once my BK gets filed!!

[ethrjock]

Thanks for the advice everyone. I am comfortable trading down to much less of a house and will welcome the reduced stress while making half the house payment I am used to paying.

So a rental is the way to go and I am cool with that.

I have a long road ahead of me (341 right before christmas, hoping I dont get transferred to a chap 13, hoping my Boss does not find out what a financial mess I am in, finding a new home, packing up 3500 square feet of stuff and finding a way to put it all in a 2000 square foot house, and whatever else is around the corner...

I have been lurking on this board for a year or so so I really appreciate the advice and having a place to come and discuss my situation with folks willing to listen.

Thanks