OMG, What Did I Do??

[Thomas_Crown]

First, I must say this website is great, I have gotten a great wealth of knowledge from it, so I decided I had to post, and see.

Okay, well, My name is Bob, and I have declared chapter 7. 341 Meeting was held on August 18th. Trustee made a motion to extend till May 19th 2009, till my taxes are completed. Obviously I filed an extension and usually get about 6,000 back in taxes. This seemed to be all he really was interested in. He did question my vehicles, and singled out a 1986 corvette that I have. Told him thought it ran, but i had not driven it in over 4 years.

Long story short, I owned a business, a franchise, and it failed. own two properties, one rental that I use to live in, a two unit. I ended up building in 2006 (ya, prime market) and kept the rental. Rental turned to be a headache, listed on market in 2006, no reasonable offers. Bank has lien on this as part of the SBA loan. One renter, never paid rent, has lived there for over 6 months rent free, because I just gave up. Letting it go, why worry, right? he still is living there.

Moving on. The house I built, nothing crazy, just a place to live and have a family. Paid 360k, with 40k of that being a 2nd to pay off my credit cards that I had used for the business. House is worth maybe 299k.

Citimortgage bought the second mortgage, whom owns the first. They contacted my attorney looking for me to work something out, so I had my Attorney sentd a letter for loan modification, and they have not responded. I called them at the phone number that they gave my attorney, and nobody knew anything about anything. They stated, they never contacted my attorney, and had no records of such. (loss mitigation dept.)

I am current on the first mortgage of the new house, WAMU can have the apartments, and they got a stay of relief, so it's theirs. MY second mortgage, I cannot afford, on my primary house has not paid in 4 months.

I started a new job, which is salary plus commision. 1st mortgage is current, but barely, paying about 31 days. Commision I thought I would have made has not been made because, Sales are down. (industrial Sales). Should I stop paying the first mortgage, at this point, till Citimortgage acknowledges some sort of loan mod.

My attorney is thinking about switching to 13 to strip 2nd mortgage, but this costs more. Has anyone done this? What about a forensic review of loan docs? I also have a lot of business debt, I cannot pay for in Chap 13.

So, what other options are on the table to save my house. I want to keep it, but am in over my head.

Loan Modifcation? Forensic Review, Debt invalidation?

Please post your thoughts, I will watch, and post any additional info needed.

Thanks, and what a great site.

[Thomas_Crown]

oh, I forgot to add. Attorney secretary called me and advised that bank who owns my auto loan called, She gave me the phone # to call to surrender it. Advised her I was out of town till next thursday. She put me on hold, to talk to attorney, then advised me to call on monday and let them know I would surrender later. On pacer there is no motion for relief, So do I have to call them, or wait till they file a motion??

[keepmine]

I want to keep it, but am in over my head.

You just summed up your problem with one sentence. Post bk, you still can't support your lifestyle. Let the house go and rent for awhile. That's your only option unless, you can grow your income in a hurry.

[Debster222]

That's the hardest part of BK. You are often required to give up things that are near and dear, but it only hurts for a little while and you may find that you are actually relieved and feeling pretty good about things once you just suck it up and make the transition. BK forces major changes in your lifestyle and pushes you out of your comfort zone, but the relief of having the monkey off your back is well worth what you might have to give up. I sleep much better at night.