median income and gift question

[sidhesadie]

I am probably going to file eventually (haven't decided for sure yet) a lot depends on my house, it's listed for sale, 3 months delinquent on 1st and 2nd. Live in a no recourse state for the 1st, but bc the second was taken out years after the 1st, the 2nd could come after me for the money, which would force the BK hand if the house doesn't sell.

Anyway, I'm so far below the median it's not even funny, so I shouldn't worry about the $1000 my family just gave me to keep me afloat, right? because even including it as income, I'm still way below the median.

[ironman60]

It's fine. Many of us have accepted money from family and friends to stay afloat. Just don't pay it back. That would be a preferential payment and they will come after you for it.

[ccsjoe]

It's fine. Many of us have accepted money from family and friends to stay afloat. Just don't pay it back. That would be a preferential payment and they will come after you for it.

Just one correction with due respect. Technically they will go after whomever you paid that was deemed preferential, not you.

Other than that, ironman is spot on.

[tcreegan]

house sale

Hi Sidhesadie,

Is the market value of your house enough to pay off the 1st, 3 months arrears, and the 2nd? Even though the 1st is no-recourse, doesn't it have to be satisfied in full before you can pay the 2nd?

Just curious.....maybe the housing market is recovering !!

Tom in Colo

[sidhesadie]

ah, no worries, I wasn't going to pay it back. lol

Tom - It's borderline. If it sells in the neighborhood of what the CMA's show list as, it will just squeak out. I'm rounding numbers, but the house is listed at 190K (at one point was valued at nearly 400K)
But fortunately the first is about 130K and the second 30K. So the payments weren't THAT high, and so the arrearage isn't atrocious. Both were fixed rate standard loans, none of the subprime madness involved.
I got a divorce and lost my job, hence the financial problems, not due to bad investment in the home.
So if we get an ok offer, even with fees, it'll pencil.

If not, it'd be short and it's a moot point bc the second won't get paid.

I think in general the market still sucks. I'm not holding my breath on it selling at ALL before they foreclose on it.

[tcreegan]

Hi again sidhesadie,

Going from 400K to 190K does sound like the market is still in the can.

But you might have some equity to get out of a sale or exempt in the BK.

The appraisal might be worth the cost....

Good luck,

Tom in Colo