I'm pretty much set on our plans with everything else but still undecided on our rental. As it is right now, no I'll surrender it. It's worth about $135K -- we owe $80K on the 1st mortgage and $88K on the 2nd mortgage. We thought about surrendering our home and moving back into the rental, but honestly, for what we'd be paying on the two mortgages, we can rent a MUCH nicer place for the same amount of money. I'd rather do that since we're upside down on the loan. BUT, my only thought still is somethiing someone touched on the other day that peaked my curiousity. I know we can't strip the 2nd lien with the current amounts -- but is there any way to somehow convert the 1st mortgage to what the house is worth, leaving the remaining $35K or so on the 2nd lien and then attempt to negotiate with them on the 2nd lien after the bankruptcy discharges and keep paying on what would then be a higher 1st mortgage but at least would be a smaller payment overall and at least not upside down on the house. Both loans are at the same bank which I guess isn't the greatest position for us.
The house honestly is not a huge deal to me. It's an okay house - but not something that works well for us, not in the kids' school districts, etc. But it would be a roof over our heads if we couldn't find a rental. AND it STAYS rented constantly, so even if we rent instead of living there, our tenants would still basically pay that mortgage, and we might actually make a little bit of a profit since we wouldn't have both mortgages then. I DO NOT want to reaffirm the loan. I want the option to walk in the future if we need too, so I don't want to lock myself into it again.
Any thoughts?
The house honestly is not a huge deal to me. It's an okay house - but not something that works well for us, not in the kids' school districts, etc. But it would be a roof over our heads if we couldn't find a rental. AND it STAYS rented constantly, so even if we rent instead of living there, our tenants would still basically pay that mortgage, and we might actually make a little bit of a profit since we wouldn't have both mortgages then. I DO NOT want to reaffirm the loan. I want the option to walk in the future if we need too, so I don't want to lock myself into it again.
Any thoughts?
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