SOS = State of Shock! Retained Attorney Ramblings.

[HakunaMatata]

[backtoschool]

Hi HakunaMatata,

I think you should use your "feel good" forum nickname (I love your screen name.) as a meditation mantra to help you come to an answer.

I think you are emotionally attached to your house on some level. You lived there for ten years. It's a bad marriage at this point. You know you want to leave, but you still have some emotional attachment. At least that is how I would feel, so maybe I am just projecting.

Foreclosure and bankruptcy will both trash your credit. Bankruptcy will get you out of $20k more of debt and give you a fresh start sooner, that's all.

As with any huge change, there is anxiety involved. To me that seems natural. Giving up your "bad house marriage" is a huge change.

[HakunaMatata]

Hi HakunaMatata,

I think you should use your "feel good" forum nickname (I love your screen name.) as a meditation mantra to help you come to an answer.

I think you are emotionally attached to your house on some level. You lived there for ten years. It's a bad marriage at this point. You know you want to leave, but you still have some emotional attachment. At least that is how I would feel, so maybe I am just projecting.

Foreclosure and bankruptcy will both trash your credit. Bankruptcy will get you out of $20k more of debt and give you a fresh start sooner, that's all.

As with any huge change, there is anxiety involved. To me that seems natural. Giving up your "bad house marriage" is a huge change.

You're the bomb!

Yes, I need to stick with my "no worries" program! I really didn't expect to endure such intense emotional disruption. I'm typically very logical especially in the business domain.

I'm definitely not attached to my house. I've never really liked it. I just thought I was doing the right thing by "investing" when I finished college. I've put thousands of dollars into it to make it mine (not including repair costs) and this hasn't aided in solidifying a healthy bond. You're correct, this has been a "bad marriage" (classic!!). My 87 year old partner just can't keep up with me. It's time for this relationship to end.

Thanks for the laugh and insight! Hmm...perhaps an insolvency party is in order?!

[LSUTiger32]

While as mentioned they both will trash your credit in the short term (we will all deal with that), you should be able to qualify for an FHA loan much sooner with a BK as opposed to a foreclosure.

Nothing is worse than a foreclosure when it comes to home purchases.

[backtoschool]

You're the bomb!

Yes, I need to stick with my "no worries" program! I really didn't expect to endure such intense emotional disruption. I'm typically very logical especially in the business domain.

I'm definitely not attached to my house. I've never really liked it. I just thought I was doing the right thing by "investing" when I finished college. I've put thousands of dollars into it to make it mine (not including repair costs) and this hasn't aided in solidifying a healthy bond. You're correct, this has been a "bad marriage" (classic!!). My 87 year old partner just can't keep up with me. It's time for this relationship to end.

Thanks for the laugh and insight! Hmm...perhaps an insolvency party is in order?!

I am all for an insolvency party. I want to celebrate my freedom from bondage to "the man"

Frankly if I didn't have a sense of humor over this whole bankruptcy mess, I would never have filed and taken positive steps to change my life into one that I actually want to participate in.

Note to the overserious types that might read this: I am NOT making light of the serious process of bankruptcy. I am simply trying to keep my sanity while going through the process.

[SandyShores]

Your score is still better than Michael Jackson's reportedly was according to TMZ his was 563.

Everything is relative.

I'd think twice about moving. Your house may be a money pit but the upside is you don't have a neighbor on the other side of your walls driving you nuts that management can't/won't do anything about and you are your own boss.

Remember, there are federal, state, local programs out there that will help you pay for some home repairs. I just got a new hot water tank and a programmable thermostat for my heating/cooling system from LIHEAP. Soon to come (as I have already been approved) is a new refrigerator from SoCal EMA Program, and a new kitchen stove and microwave from LIHEAP. It takes forever but it's free. You have to do your homework but most info can be found on-line.

SandyShores

[music12]

when did your lender reduce your payments? have you sat down with a calculator yet to see what life would look like with the new payments?

it sounds like everything has been happening very fast for you. maybe do something you really love doing tomorrow, that will get you somewhat relaxed. then sit with a cup of your favorite coffee/tea/hot cocoa, take a deep breath, and do some numbers. if it will be cheaper to stay than to rent, maybe bk is not the right answer. but that depends on the numbers. again, take a deep breath.

also, if you have a friend you can really trust, get them to help you go through the numbers. you sound very emotional about the whole thing and need someone more level-headed to help you figure this out.

[mike258]

Even if you surrender your home in BK, your lender will still need to go through a foreclosure process to get the house out of your name. The foreclosure will not show up on your credit report but will show up when someone looks at your county land records.

Keep in mind that with a foreclosure, you will not be eligible for a FHA backed mortgage for 3 years, and the clock doesnt start ticking until the property gets transfered out of your name. So you could be looking at 4 years or more from now before you can be eligible for an FHA mortgage.

[HakunaMatata]

when did your lender reduce your payments? have you sat down with a calculator yet to see what life would look like with the new payments?

it sounds like everything has been happening very fast for you. maybe do something you really love doing tomorrow, that will get you somewhat relaxed. then sit with a cup of your favorite coffee/tea/hot cocoa, take a deep breath, and do some numbers. if it will be cheaper to stay than to rent, maybe bk is not the right answer. but that depends on the numbers. again, take a deep breath.

also, if you have a friend you can really trust, get them to help you go through the numbers. you sound very emotional about the whole thing and need someone more level-headed to help you figure this out.

My payments reduced by $100/month beginning in August (they will readjust in a year). My situation differs from many because I can afford my payments...I can't afford repairs. The $100 less monthly is a nice break provided the sewer, roof, or main beam don't break. I feel like I have a calculator attached to my palm these days. The greatest difficulty I experience when running numbers is I don't know when major repairs will surface. I've been down the major sewer repair road and it stinks (you can take that literally if you'd like ). Upon moving into this home a decade ago, I was forced to invest $5k into a new sewer line. One 3 1/2 foot piece was sleeved instead of replaced (since it was positioned under the front porch). Guess where my current problem is located?! I'd have to remove the porch, dig up a significant portion of the front yard, and ruin landscaping AGAIN to fix this. I just don't have the energy. Even if I had the energy, I simply don't have the money.

Considering a straight monthly payment, rent will be more expensive (I will have to rent a house as I have two large dogs). If I remain in this house, repair costs are a significant factor. I have at least $10k in work that will need to be done. My thinking: I've already initiated the foreclosure process. I want out of this house. I'm aware of the necessary repairs ahead. I'm underwater without a life jacket. I need to push forward. Why have I been making this so difficult?!

You touched on a significant factor in my current frustration...timing. While I often dreamed of no longer being tied to this house and prayed that Mother Nature would have a giant tree fall on it, this is all coming together very quickly. I made the conscious decision to stop paying my mortgage shortly following the sewer discovery. I, initially, felt comforted because so many people are experiencing/chosing foreclosure. I didn't anticipate nor was I prepared for bankruptcy. Obviously, my foreclosure knowledge was waning. Likewise, I was clueless about BK. I'm so lucky to have gained so much from all of you!

I've been rather candid about my course of action with friends, family members, and co-workers. I've contacted real estate investor friends and my CPA. All have suggested I need to get out of this house in order to move forward. This shockingly includes my Great Depression grandmother (who has saved every penny since )

The emotions are ebbing and I'm regaining business sense (I will heed your advice and do something for myself!). I still can't believe that BK can be more favorable than foreclosure. It baffles me that I will be in a better position by negatively affecting all my creditors instead of one.

[HakunaMatata]

I am all for an insolvency party. I want to celebrate my freedom from bondage to "the man"

Frankly if I didn't have a sense of humor over this whole bankruptcy mess, I would never have filed and taken positive steps to change my life into one that I actually want to participate in.

Note to the overserious types that might read this: I am NOT making light of the serious process of bankruptcy. I am simply trying to keep my sanity while going through the process.

Sarcasm is the key to my sanity. Since my sanity has been challenged of late, I really appreciate your comments! (BTW, your original viagra comment was freaking hilarious!! Yes, I'll be sharing your amusing analogy with friends!). Prepare for the MIP (Midwest Insolvent Party)!!

[HakunaMatata]

Your score is still better than Michael Jackson's reportedly was according to TMZ his was 563.

Everything is relative.

I'd think twice about moving. Your house may be a money pit but the upside is you don't have a neighbor on the other side of your walls driving you nuts that management can't/won't do anything about and you are your own boss.

Remember, there are federal, state, local programs out there that will help you pay for some home repairs. I just got a new hot water tank and a programmable thermostat for my heating/cooling system from LIHEAP. Soon to come (as I have already been approved) is a new refrigerator from SoCal EMA Program, and a new kitchen stove and microwave from LIHEAP. It takes forever but it's free. You have to do your homework but most info can be found on-line.

SandyShores

Heeheeheee...my score is actually 689. My brain has been bouncing around too many numbers today! Wow, I've got MJ beat. I may have to brush up on my Moonwalk!

That's fabulous you were able to benefit from those programs! Cheers to you! I've looked into a few and I'm not a candidate. My income is too high (slightly below the median). If only I could count my dogs as dependents!

I think I'm going to stick with my house "Beat It" program and get it "Out of My Life".

[backtoschool]

Sarcasm is the key to my sanity. Since my sanity has been challenged of late, I really appreciate your comments! (BTW, your original viagra comment was freaking hilarious!! Yes, I'll be sharing your amusing analogy with friends!). Prepare for the MIP (Midwest Insolvent Party)!!

I erased it because I didn't want to offend anyone. My sense of humor is as bankrupt as the rest of me.

Party near the broken sewer pipe under HakunaMatata's porch! Woot!

[OhioFiler]

I erased it because I didn't want to offend anyone. My sense of humor is as bankrupt as the rest of me.

Party near the broken sewer pipe under HakunaMatata's porch! Woot!

There are plenty of readers here who are not offended by excellent humor. Next time, don't erase!

[HakunaMatata]

I erased it because I didn't want to offend anyone. My sense of humor is as bankrupt as the rest of me.

Party near the broken sewer pipe under HakunaMatata's porch! Woot!

YIPPEE!! Let's get this insolvent party started!! I'll call the plumber to dig the hole. Wow, such a perfect setting...since we all know what it's like to be in the hole! I'll bring the hazmat suits, BTS...you bring the nose plugs!

[HakunaMatata]

Foreclosure and bankruptcy will both trash your credit. Bankruptcy will get you out of $20k more of debt and give you a fresh start sooner, that's all.

While as mentioned they both will trash your credit in the short term (we will all deal with that), you should be able to qualify for an FHA loan much sooner with a BK as opposed to a foreclosure.

Keep in mind that with a foreclosure, you will not be eligible for a FHA backed mortgage for 3 years, and the clock doesnt start ticking until the property gets transfered out of your name. So you could be looking at 4 years or more from now before you can be eligible for an FHA mortgage.