I am thinking of changing my mind

[B65]

discharged Ch 7 last month, 3 months behind on mortgage.. house has 30-40k negative equity, mortgage payment high $2500 rentals here go for 1500-1800. over 7k a years saving.
Looked at fannie/mae.freddie/ mac if you foreclose it is 5-7 years before a new mortgage. FHA is 3 year from end of foreclosure or 2 years from ch 7 discharge date.

5-7 years is a long time to rent and it is impossible here to find a rental that long term.. so it would mean moving maybe every year or 2... I have children and animals.

I am now thinking about paying back the 3 months and maybe me taking on an extra job to give us more money per month to wait it out the 2 years (14K loss over 2 yrs than if we had rented) and try to sell it in 2 years..maybe it will have made up that neg equity and then I can move and will be approved for a loan...

I am confused.....

[floridian]

moving sucks.... i just moved an entire house of furniture by myself and a month later, had to move again....not so bad, if you can afford movers, but i cant..

[StartingOver08]

B65 - how much is your negative equity as a percentage of the value of the property? Is it 10% or is it 1% or is it 40%? Is the difference in the mortgage payment because of the interest rate, the principal owed or the taxes and insurance. That might make a difference in your decision.

The reason I ask, is because if you are say 10% under water - that is really a recoverable event in a finite time period. But if you are 40% under - than that is an entirely different situation. $30k to $40k in and of itself has no real meaning without knowing its relationship to the actual asset.

Remember, don't lock yourself into something that is going to be impossible to recover in a reasonable time period. Reasonable to you. It is a tough decision.

[B65]

Hi

well I owe right now $292 plus the 3 months behind..... the value is $260... some house have gone for less (foreclosures re-sold) 2 across the road in the last 6 months went for 310...so that is the average value...... so i do not think the principal or loss is too bad... The interest is high 7.5% real estate taxes are high..but they all are in this area.. if the rate droped and maybe term extended a little it would bring it to a manageble payment..... and i think it would probably get to the point where i could sell it and break even in 2 years..I could just choose to stay here until my DD graduates in 8 years as the payment would be ok for us....

[B65]

I think

the percentage is around 10% negative right now right? based on those numbers....

[dingdong]

I was reading the mortgage after BK threads, and a member posted that they were able to obtain a USDA loan 9 months after discharge.

Of course you have to qualify income wise ( it is for low income borrowers) and the property has to be in a certain area, but you would be surprised what they consder "rural". You dont have to buy a house in podunkville, ( but ya could if ya wanted to )


Here is the link to the thread.

http://www.bkforum.com/showthread.php?t=37041

[jessegirl]

B - I PMed ya....

[StartingOver08]

Actually it sounds like you are in a good position to keep the house and maybe work out a loan mod. If your house is fannie mae or freddie mac you may be able to work out one of the very good interest rate programs, but it is my understanding you have to be current for the last 12 months. This is a long term solution - so if you are planning to keep your home, you are best served to get the funds to the lender before the NOD.

[NoMoreRed]

Just as StartingOver08 stated, you may be able to get your loan modified under the new government plan since you're with Fannie Mae or Freddie Mac.

http://makinghomeaffordable.gov/index.html

Was your house included in your BK? Did you sign a reaffirmation agreement? If it was included in the BK and no reaffirmation was signed then the foreclosure will not count the same as a normal foreclosure since you had no legal obligation to pay due to the discharge. In this case you would fall under the C7 rules and potentially qualify to purchase another house after 2 years.

[B65]

Hi question...

The house was included in the bankruptcy, and we did not reaffirm... the thing is do they not ask you when you apply if you have foreclosed on a house? I would have to say yes..... Are you certain that those rules apply when a house is included in a chapter 7?
It would make things much easier.....

[NoMoreRed]

If the house was included in the BK and shows IIB on your credit report then the foreclosure will not count like a foreclosure normally would. The mortgage co. still has to take it through that process, but it's not the same. The house (if included in the BK) wwould show as discharged debt.

To be absolutely sure in your mind then go back to your attorney and get clarification. If you didn't use an attorney then go consult with one.

The info that I'm passing along is what my attorney told me, but remember that I am only passing along info which would be secondhand info. I know how you feel...this gets pretty confusing.

[yeahdischarged]

We had our chapter 7 discharge over 2 years ago. Foreclosure on home included in BK did not foreclose/have sheriff's sale until last September (we stayed in the home making payments as long as we could.)

Since it's been over 2 years, we looked into getting a mortgage (to see if we could, no plans to buy at this time). Question on loan app said: Have you had any ownership interest in a property in the last 3 years? Is the answer to that question true or false? I think true since the bank couldn't take the home as long as honored the mortgage? Correct? Called the loan officer and when I explained the situation he said it would be 3 years from the foreclosure. So we have 2.5 years go.

In hindsight, I wish we had given up the house at the time of the discharge. It has set us back, IF we wanted to get a mortgage. Only options we might have would be to get an in house loan at a bank if we had a relationship with any (we don't, recently changed states).

If someone finds out otherwise, please post and let me know.

[momof3b1g]

I wanted to say seeing i don't think anyone mentioed. Why would you have to rent for a year and move? We lived in a rental for 3 years. We signed a yearly contract. But eavh year just signed another one. You don't want to sign anything longer then a year anyway. You never know what life will bring. But most places you can just resign when your lease is up.

[BK2008]

I wanted to say seeing i don't think anyone mentioed. Why would you have to rent for a year and move? We lived in a rental for 3 years. We signed a yearly contract. But eavh year just signed another one. You don't want to sign anything longer then a year anyway. You never know what life will bring. But most places you can just resign when your lease is up.

Ahh...the beauty of renting after 25 yrs of ownership

I also have 2 kids and don't want to move around, so I plan to just renew my lease. And if I end up unemployed (again) I know I am not absolutely stuck.

[spearmint]

Ahh...the beauty of renting after 25 yrs of ownership

I also have 2 kids and don't want to move around, so I plan to just renew my lease. And if I end up unemployed (again) I know I am not absolutely stuck.

I am still trying to decide what to do about my condo - keep it or not.

Anyway, the only thing with renting is "it's not yours", you can't decorate it the way you want to (I don't think anyway) and landlord could come in at any time.