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Ch 7..two houses..what to do

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    Ch 7..two houses..what to do

    Hi all,

    First time poster.

    I will probably give too much info. SORRY!!

    I bought a house in Orlando, Fl in 1998. Homestead and lived there until 2007. Bought a new house in a new development in 2007. Kept the first house and rented it out for $1300 a month (Mortgage was $700). Transferred homestead to new house which has a mortgage of $1650/month.

    Well, first renters moved out (they were bad renters, late payers, etc) and finally got new renters for $1050. Mortgage on rental around $825 now (insurance went up). No worries. Until..

    We are now expecting a 2nd child. Cannot afford daycare x 2 (1200/month), so my wife is going to stop working. We owe approx 40,000K in CC debt. As of now we are current on everything but her last paycheck will be in 2 months. I hope no one can force her to go back to work??

    My question is..we want to move back into our 'rental property' with a payment of $800 and mortgage of $70,000 in about 2 months(our current renters are on a month to month contract), transfer our homestead there, and then either short sell, DIL, or foreclose (honesly we dont care) on the new house with a mortgage of $200,000(thats worth abt $150,000) and $1650 payment. The way it looks we could then make it on our savings for abt 8-12 months before filling a chapter 7 bankrupcy. Those $800/month credit card payments sure do hurt and would exhaust our $10,000 in cash in a year. Anyone have any advice? Is there anything illegal about this? Thanks a ton!! staying up again until 1am worrying cant be good for me and could use any advice.

    #2
    Hi Cavedog, welcome to the forum.

    You sound like you are on the right track in going back to the rental and claiming that back as your homestead. Then let the new place go back to the bank.

    From this point, I really can't advise as I have very little experience with mortgages. There are other members out there with far more experience in this area, that will be glad to advise you.

    Good wishes to you and your family!
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

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