Need some help...

[sickandtired]

I posted this in another forum yesterday and didnt get any response, so I thought I would post it here too.

So we are completely new to this whole thing and have retained an attorney. I fully plan on calling her tomorrow as she is great about getting back to me, but I wanted to ask here too.

We are all ready to file, the only thing we were waiting on was to 1. Finish paying attorney, and 2. Get the mortgage caught up. We were planning on keeping our house. So tonight after talking we decided that we really don't have a problem letting the house go and moving elsewhere because we will probably never get it caught up and the payment is killing us anyway. So my question is, how hard is it to get another mortgage after BK or be able to rent? I dont really want to rent but dont have a problem with it for a while.

The other thing was this, we would rather not let the house go to foreclosure but would rather sell it. Would we be able to sell it and still go through BK at the same time? We probably would not make very much off of it, might be able to break even with the bank and pay the realtor, anything after that I assume would be exempt because there really isnt any equity in it. But if we are filing BK would the bank allow us to have it on the market? How does it work? Sorry if I sound stupid but like I said we didnt ask the attorney before because our goal before was to keep the house.

[AngelinaCatHub]

As far as the house. It belongs to you 100%. You don't need permission on anything. The Mortgage company only has a lien on it. You may sell it in your bk, advising the Trustee of this fact. After expenses, however, any profit at all belongs to the bk estate. In fact once you file then the house belongs to the bk estate as well. Trying to even up the mortgage is not self serving or preferential. It is a business transaction that you would not profit by. 'Hub

P.S. it is not preferential as it is a secured note.

[MSbklawyer]

So my question is, how hard is it to get another mortgage after BK or be able to rent? I dont really want to rent but dont have a problem with it for a while.

It depends. I hate giving that as an answer because it means almost nothing, but sometimes it is the answer. It won't make renting or getting a mortgage any easier, but the answer really would depend on a lot of other things such as your pre-bankruptcy credit history, what the real estate market is where you live, how much down payment / deposit you can put up and a number of other things.

The other thing was this, we would rather not let the house go to foreclosure but would rather sell it. Would we be able to sell it and still go through BK at the same time? We probably would not make very much off of it, might be able to break even with the bank and pay the realtor, anything after that I assume would be exempt because there really isnt any equity in it. But if we are filing BK would the bank allow us to have it on the market? How does it work? Sorry if I sound stupid but like I said we didnt ask the attorney before because our goal before was to keep the house.

Why do you want to go to the added trouble and expense of selling the house yourself? It won't diminish the impact that bk will have on your credit. Unless there is some real possibility that you'll have exemptable equity left over from the sale, why not just surrender it back to the bank?

[sickandtired]

Thanks for replying:

It depends. I hate giving that as an answer because it means almost nothing, but sometimes it is the answer. It won't make renting or getting a mortgage any easier, but the answer really would depend on a lot of other things such as your pre-bankruptcy credit history, what the real estate market is where you live, how much down payment / deposit you can put up and a number of other things.




Why do you want to go to the added trouble and expense of selling the house yourself? It won't diminish the impact that bk will have on your credit. Unless there is some real possibility that you'll have exemptable equity left over from the sale, why not just surrender it back to the bank?

Credit history is bad, hence, needing to do the BK. Not really sure how the market is doing around here, I have a call in to the realtor that had my house on the market a few years ago to find out. Won't be able to put anything down right now. Was hoping to have a little left over after sale of home to do it, but as I said I dont know how things work so I dont know if that can be done.

Well, I guess to save the humiliation of having a foreclosure and the fact that we want to buy again and I thought the foreclosure would be worse if we were trying to buy another house. If we can get what the realtor thinks then we should end up with maybe a little less than 10 grand after paying the realtor. I thought that would be exempt (still clueless on this) and we could use that for a downpayment on another house.

Thanks for all the input and help. I really need to call my BK lawyer today and talk this over with her.

[momisery]

It usually takes about 2 years of established good credit to go FHA if you fit the criteria to go FHA. Normally they want some down, but not a lot.

[momisery]

One note here after a BK it is 2 years after a foreclosure it is 3.. interesting huh? And, the down is less than 4% and in some cases you can get a 100% loan...