Need some advice -

[Freddy03]

Ok I think I just had a "what the heck am I doing" moment!

I'm sitting here thinking once again how and when I'm going to file chapter 7 b/c DH's wages are now (finally) being garnished and that garnishment will hurt us if it goes on for more than a month. I also noticed that the judgment creditors have put in to garnish my wages but I have requested a court hearing for claiming head of household.

I just paid my mortgage payment ($1650) that's 2 months behind and I'm going to fill out modification paperwork tomorrow.

So what the heck moment was WHY??? am I still paying $1650 (not including taxes and insurance) on a crappy 1300 sq foot house in a not so nice neighborhood???

I just checked some rental homes (A LOT nicer houses) in my zip code and found a few that I really liked. A lot more space, newer, nicer neighborhoods about $1350-$1400 range. I won't have to pay taxes, HOA dues, ins (I would get renters ins).

I would have to come clean to the family about the BK but I'm almost to the point of who gives a rat's a$$ anymore.

So I guess what I need is some idea of when WF would start the FC process.

If I placed a stop payment on the payment I just made I could file BK next week. Or should I just wait till next month - not pay mortgage get technically 90 days late, file BK and wait out the FC as long as possible and hope there are good rentals out there in a year or so.

Should I wait until I have a mod started?
Will that give me more time?

How difficult would it be to get approved for a rental after BK?

Sorry this is long. I'm having a mini break down today.

[IamOld]

Oh wow Freddy - I guess I'm the last one to give you advice re not having a nervous brakedown...

Well, you already made this payment to WF right?

Let's look at it this way - IF you do NOT put a stop on the payment, can you still do the BK when you'd want to?

If you DO put the stop payment on the payment, you pretty much know you'll have to move. - have you spoken to rental places to see if they would work with you?

It seems to me here are your questions:

1) do you WANT/can afford the house - don't forget you get a tax break for the mortgage

2) if the answer to #1 is no, then can you get the rentals that you want and if yes, how much $$ do you need? [QUESTION - DID YOU SEND WF A CHECK? IF YES, YOU HAVE A FEW DAYS...TRY AND SEE IF SOMEONE WOULD RENT TO YOU AND UNDER WHAT CONDITIONS]

3) and of course how long can you stay in the house to save up some cash...I think the FL folks will reply on this.

I don't know how much this helps... :-)

If it makes you feel better, I've got to come up with $1400 to pay R/e by end of Aug :-)

[Freddy03]

Thanks for the reply

If I don't place a stop payment on this month mortgage payment I will be able to file BK on July 15th but I won't be able to make another mortgage payment for 2 weeks after that - if I still want to try and stay in this house.

I guess what I'm getting at is I don't want to file BK and still be broke afterwards. Right now paying morgage/taxes/ins/HELOC/car/bills we have very little left over to pay for car maintance, doctor appointments, school functions, clothes and necessities. My mortgage is HIGH for a tiny house. Granted I loved this house when we moved into it but refinancing twice and now my mortgage balance is $110k then the purchasing price it doesn't really make sense for us to stay when we coudl rent somewhere nicer and save about $500 a month.

I'm not too worried about the tax break b/c my refund checks always go straight to property taxes and homeowners ins. So even if I get a lesser refund I can keep all of it.

I'm just worried about how long we can stay "rent free" to have some type of savings before becoming renters. And I'm also worried about not being approved to rent. Of course I will work as hard as I can post BK to clean up our credit reports but that's not going to happen over night.

Currently my house is $110K underwater and we do have a $12K HELCO with the same company. So I would be saving an additional $250 on that payment also.

[IamOld]

Hello Freddie - look I always say that people should not make long-term decisions on a moment's notice, that you shouldn't let the universe force your hand...of course reality is quite something else.

So...it sounds like you answered your own question!!

Or let me put it to you this way - even with the (**&^ HOA and R/E taxes, renting where I live wuold still be more or equal to the mort. In that instance, it's reasonable to stay/try to stay. BUT you're case is NOT that!

Since the day is young...why don't you try and talk to one or two of the places you found that you like and/or a good R/E? As my present spouse (long story for the joke) would say, you're not the only one by any means! Kind of see what they tell you on the phone...you can still phone in the stop payment say an hour from now, right?

[sunshinepa]

Hi Freddy. IAMOLD gave you some good advice. The big question is this-do you want to keep the house. If the answer is no, then stop that payment and get filed. If your unsure, let the payment go.

I think if you are honest with future landlords, they will rent to you. Many people on the forum have gotten nice rentals after being upfront. I think there are some folks here who filed BK that are landlords from posts I have read. I'm sure there are many more who may have filed BK at one time.

Don't have that breakdownl, hang in there, make a decision and stick to it. Seems to me you have already decided the best option is to give up the house. Foreclosure won't happen overnight, it will take a bit of time. I'm sure you have seen some posts here where it was taking forever, the market is flooded with them and the banks can barely keep up. It will give you some time to save and look for a place. Remember, they have to ask for relief of stay (I think that's what it's called) once you file so that right there delays any immediate foreclosure action until approved.

Keep us posted and good luck.

[Freddy03]

I'm going to talk it over with my husband today and see what he says.

I'm just nervous that say we file in July - being behind on my mortgage they will file to FC asap and we only have a quick time to get out and find a nice place (hopefully one that will rent to us).

[IamOld]

Freddie, I think when you file, that will slow things down for at least a month maybe two before WF can do anything to start with. Now - I've no idea about the FC process in FL, but you know others here do.

if you've retained a new atty, they would know how long you'd have (more or less).

[Freddy03]

Another question is - what if I stop payment on this mortgage payment and file bk on July 1st - can I still use my mortgage payment as an allowable for the means test and schedules?? I won't check surrender.

[IamOld]

Good question! I know the pros will answer that!

[sunshinepa]

I don't know if you can use the payment however, you would still get a housing allowance for sure.

[LadyInTheRed]

I'm just worried about how long we can stay "rent free" to have some type of savings before becoming renters.

I heard on the radio this morning that it is taking an average 900 days in New York, 600 days in Florida and 400 days in California and Nevada to complete the foreclosure process. I assume they were talking about the number of days from default, but they didn't say. There's no guaranty of how long it will take for your house, but it gives you an idea. It seems like you will have plenty of time to save for a large enough deposit to convince a landlord to rent to you, plus have a good sized savings.

[Freddy03]

Ok I just spoke with the DH and he said let's stop the payment now and see how long the FC process takes b/c he honestly hates this house and hates that we pay so much each month for it.

I'm starting to freak out!!

I'm nervous that this will put me 90 late on the mortgage and they will start FC ASAP. Now if I stop payment I could file BK on July 1st.

I just left a message for my attorney to go over this with him and to get his opinion on it.

I am still wondering if I will be able to use the $1650 for the means b/c with out that we would be in a 13.

[IamOld]

Freddy I think someone here said that as long as you have the intention of paying you can use it on the means test.

THOUGHT - what if you put a stop on this check, right, and replace it with one for ONE!! payment only. Then you're still paying the mort.....

[sunshinepa]

Don't freak out. When you speak with your attorney, ask him about the mortgage payment issue, that's what you pay them for.

Look at it this way, if you file in July, with a bit of luck you will be debt free by the end of Sept. That alone should give you some incentive to remain sane!!!!!

HANG IN THERE!!!!!

[Freddy03]

And what about the mod - should I even bother filling that out? Will that stall any FC process?

I wasn't going to actually stop the payment just withdrawl the money out tomorrow and let them have it hit my acct and my bank would reject it.