Getting Ready to file CH7, Poss give up House

[Jtech]

Hello Folks.
I have been reading here for a while. My wife and I racked up 50K in CC debt across 5 cards. We recently retained an atty and are working on coming up with the $1500 he wants to file CH7. Originally we were going to just file on the CC debt and keep the house and car. However, My wife and I were discussing it and we considering giving up the house that we are underwater on and moving to a area were we are confident we could gain good jobs and incomes.

Currently we are actually one month ahead on our house payments.
The question we have, Is if we decided to do that, Could we stop making payments on the house now and move out after the discharge? At $800 a month in payments being saved, We could pay off the atty, Pay off the property taxes coming due and save some money for the down payment and first couple month of rent due really quick. Or does it work differently if we know ahead of time we are giving up the house?

Also, Typically, How long after filing a CH7 that a bank will typically give one a loan to purchase another house. I feel that we could do so much better this time in chosing a house to buy and hope we can give it another try.

[Flamingo]

There is no guarantee that if you give up this house and attempt to obtain one in the future after filing bankruptcy, that you will be able to get a mortgage again. Your bankruptcy on your records for 10 years (if chapter 7) will hurt you, new mortgagors will contact your present mortgagee as to your history, and you can't pick and choose what you can or can't do during a bankruptcy. It all depends on your financial situation now.

It appears most people look to 2 to 3 years down the road to try to obtain another mortgage. There have been some people that have qualfied, there have been some who have not. Again, it's all situational as to that time and also dealing with a bankruptcy on your records. A good broker will be able to clue you in more as to the market at that time and your chances but expect to pay more in fees, PMI, etc. if you are approved. The FHA requires five years of PMI to be added to one's monthly mortgage payment for risk-based loans.

[Jtech]

From what I have been reading, It would be best in our case to stop paying, Not re-affirm the house. Save the money, and wait for the bank to kick us out and then move to a better location with the small fortune we saved. Seems minimum, We come out with $5,000 put aside and we don't even bother with the houses property taxes.

We hope, As far as buying, Im thinking minimum 5 to 6 years after CH7 before we even think of trying to buy. I hope to have a lot larger income, and My wife will hopefully have an income and credit will be clean short of aged CH7. I realize CH7 hurts alot, But, Maybe we will be lucky and there will be banks that still realize that crap happens, Especially if we have the funds to put down a Nice large Downpayment.

But if not, Worst case scenario, Hopefully living in section 8 house with reasonable amount of gov't income coming in.

My biggest worry is how hard is it to rent a house after one has filed CH7.
Im also worried about my kids and wife uproot, Its a really hard decsion to give up house you have known for 5+ years and swore you would stay in till end of your life. My poor wife broke down into tears yesterday when I passed the thought to her. However, I beleive it may be a necessary evil and in so many ways better for my family and I. I just never realized until now, What some of you folks have had to go thru.

[lunasgal]

I want to keep my house if the bank would lower my payments, but I am 50k upside down and the house is older and will need lots of repairs. My lawyer told me I should walk away as if I ever miss a payment CITI will start foreclosure based on my Chapter 7 that is in process.. Not to reaffirm unless they make my new loan based on existing value and my interest rate, in which I am sure Citi won't do but I am waiting to hear back.. My last payment was last month..

[drowning123]

From what I have been reading, It would be best in our case to stop paying, Not re-affirm the house. Save the money, and wait for the bank to kick us out and then move to a better location with the small fortune we saved. Seems minimum, We come out with $5,000 put aside and we don't even bother with the houses property taxes.

We hope, As far as buying, Im thinking minimum 5 to 6 years after CH7 before we even think of trying to buy. I hope to have a lot larger income, and My wife will hopefully have an income and credit will be clean short of aged CH7. I realize CH7 hurts alot, But, Maybe we will be lucky and there will be banks that still realize that crap happens, Especially if we have the funds to put down a Nice large Downpayment.

But if not, Worst case scenario, Hopefully living in section 8 house with reasonable amount of gov't income coming in.

My biggest worry is how hard is it to rent a house after one has filed CH7.
Im also worried about my kids and wife uproot, Its a really hard decsion to give up house you have known for 5+ years and swore you would stay in till end of your life. My poor wife broke down into tears yesterday when I passed the thought to her. However, I beleive it may be a necessary evil and in so many ways better for my family and I. I just never realized until now, What some of you folks have had to go thru.

What I've read is that it's easier to buy a house after CH7 than it is to rent. Stay as long as you can in the house and save up some good money, then see what you can do housewise. All the best.

[Jtech]

One thing I was thinking of doing.
Was that we would hold off on the CH7. Stop paying on the current house and try to build up as much as I absolutely can for as long as I can to a point of about $6,000 to $7,000 if possible, Although Im not sure being in a non-judicial state. Move and get settled before my record has the CH7, Foreclosure or judgements on it. Then file after we are secure in a new place for a few years, Thus building a good rental history and aging out the negative records.

Do you think this would work?

I think Im gonna have to get a new lawyer anyways, This one is starting to bug me in not returning calls, giving vague answers and such.