Want To walk Away and Chapter 7

[greatscotts]

Hello Everyone

I am in default on my First and Second Mortgages. I want to walk away and let them foreclose and file Chapter 7 in a few months.

I did have a consultation with a BK Lawyer. We went over all my earnings for the last 6 months. I am below the means for SC. He than added all my expenses
if I walked away. and said I would not qualify because of the money left over was more than 180.00 (I think that was the Number). This is based on my gross average for the last 6 months.

I know that in a couple of months I will be able to qualify do to how much money I am making now.

Is it safe to walk away and stop paying all Bills, let's say 3 or 4 months till you can save the cash to file and have a qualifying gross income?

[keepmine]

Is it safe to walk away and stop paying all Bills, let's say 3 or 4 months till you can save the cash to file and have a qualifying gross income?

Absolutely. Stop paying all debt you wish to discharge and use the money for legal fees and basic living expenses.

[DeadManCrawling]

When you use the term "walk away", do you mean this literally or figuratively?

Foreclosures take time, and you will continue to be responsible for certain aspects of the home/condo until BK discharge or deed changes back to the bank. This varies by state, but you should be aware of it. Association fees, possibly maintenance, etc. and some others may fall in this category. Some are dischargeable, some not, and this also varies by state.

Many people, myself included, stay in the home and use the foreclosure time to save money to prepare for the future. There are increasingly longer times for foreclosures in some states. We are on month 8 of not paying a mortgage and have not had the bank make a move, other than the letter of intent to accellerate, which is a legal requirement imposed on them.

Some on ths board are going on 2 years or longer, or know someone who is. We also intend to fight our foreclosure to extend it as much as possible.

In fact, we considered a preemptive strike, suing the lender before they sued us. We ended up waiting to see how long they would take to get things rolling, and it has been worth it.

[greatscotts]

Thanks DMC

I mean to move from the house and let the foreclosure process begin. That way I can move everything from the house while they are doing whatever they do. This will hopefully relieve some stress, while I start all over.

Start over and save the money needed to file chapter 7. Since staying in the house will make me file for BK anyway.

[StartingOver08]

I think what DMC is saying is take advantage of the long time that the mortgage lenders are taking to foreclose. After all you will have no mtg payment to make and no rent payment to make so you can beef up your savings that much faster.

I know that the last payment I made was May 2008 and I am still in my 'surrendered' house. I probably have a couple of more months before the sale. The lenders are moving slowly because they do not want to show how much inventory they have that is 'non performing' and they do not want to pick up the maintenance expenses associated with each home (lawn, maint fees, etc). Consider staying until you are not comfortable. I know it goes against your gut to not pay for the place you live, but think of it as maintaining the place in better condition then the bank would if they had it. JMO.

[BillyRip]

I stopped paying my mtg in Jan and I finally got notice that the sale date is 9/16.

Just be sure to sock away dome of that paying for security deposits, pet deposits, and other moving expenses.

Good luck...