Pulling BK 7 trigger this week....anxious...thoughts?

[OhioFiler]

I'd sell the primary residence, hide the net proceeds from bill collectors, live off those proceeds until you are forced to file a BK because of lawsuits before I'd let that $30K go to your creditors.

If you don't have the income to do a loan mod, you don't have the income for a Chapter 13 to save your home. What are the exemptions for your home in your state? Can you exempt the entire $30K?

[jmc]

Not bad at all. Just remember to take your time and do your research. They're not going to come and whip you or eat you, so do what's in your best interest.

As to nipping? Sounds like your rentals are costing you money. The big question is "so what" if you can't cure them. Let the bank relieve you of the burden and manage them instead. Take the money from the rentals and cure your home if you intend to try and keep it. As to the other $1100 on minimum payments, consider not paying them.

Keep a roof over your head and food on the table. Everything else is a luxury.

I've got a banker breathing down my neck on some rentals now. Love those letters with the veiled "threats". They don't want them any more than I do, so whatever they want to do is fine with me. I'm not going to let them rush me into bk. I'll do it at the time that works best for me, not them.

frogger - sorry i haven't figured out how the multi-quote works just yet!
RENTALS - The rentals are a PITA some times for sure, but they both have decent tenants in them and the rents cover the mortgage payments.... Unfortunately I used those funds in the last 60 days for necessities and that's why I'm behind -

If I could sell primary and move into one of my rentals (that WAS my primary res 5 years ago) I would immediately knock about $600 out of monthly nut.... The next goal would be to get THAT house ready for sale because - on paper - there's about $40k equity in it. The other house I now realize I didn't "buy well" - it is worth what I owe and not a dime more.

(I'm currently working on a "contract for deed" situation on both houses with an investor friend of mine to take over the houses and responsibilities and gets permanent financing put on them within 18-24 months....I would be getting a $15k non-refundable down payment to lock in his commitment)

STOP PAY - It's so hard to do (you all know that though). But if I've already got 60 day lates now reporting on 3 different mtg notes the credit is officially shot already....and I have no money at this point and Peter/Paul have closed shop. I guess it turns into an easy decision at some point....like RIGHT NOW.

LETTERS FROM MTG COS - Maybe you could confirm or shed more light for me on something re: investment prop foreclosures. If I am insolvent (i.e. BK) then they cannot come after me for any deficiency judgment or 1099 me for "forgiveness of debt" (hopefully, you understand what I'm trying to ask)? Pulling the trigger on all of this is stressful enough without the thought of getting 1099'd or sued 6-18 mos down the road. The way I read it was if you just let investment props "go" - but can't prove insolvency - then you ARE subject to the forgiveness of debt 1099's and potential legal action

ONE THING I KNOW I DID RIGHT - Always a silver lining I suppose. I don't know why I did this, but through my 12 years of marriage I've made sure to put all the debt on me - the only tradeline my wife and I share is the 1st mortgage on the primary res....and I've managed to make sure that is paid before a 30 day late can report. I'm hoping to get through all this with 1 member of the household with good credit. Just thought I better throw that caveat in there in case in changes any of the great feedback I've been getting.

I am impressed and humbled that so many folks have taken a few minutes to share their experience and help a complete stranger. Thanks

[jmc]

What are the exemptions for your home in your state? Can you exempt the entire $30K?

This is what I found for my state exemptions:
"Real property or manufactured home to unlimited value"

I can exempt it all.

[frogger]

STOP PAY - It's so hard to do (you all know that though). But if I've already got 60 day lates now reporting on 3 different mtg notes the credit is officially shot already....and I have no money at this point and Peter/Paul have closed shop. I guess it turns into an easy decision at some point....like RIGHT NOW.

It gets easy once you decide what your decision is. I made mine several months ago and since then, it's like a 1000 pound weight has been lifted off my chest.

I KNOW what I'm going to do, so I can plan my actions and deeds accordingly. This forum and the people here have been so helpful. Make your decision and you'll find that life gets much easier.

When I get mine over and done with, I'll have a lot more info that I'll be willing to share. But for now.... mum's the word!