Chapter 7 and foreclosure

[dmc-2008]

I am facing foreclosure (2 months since last payment) and planning chap 7 file in October. I am so nervous about finding a place to rent! Will it be really hard? What have you done to secure a roof over your head? I am sick to death worried! Any advice, thank you!

[keepmine]

Stop worrying . Only in default by 2 months you likely have a year or more before you have to move.
Best bet may be small landlords as opposed to national apt. rental companies.

[dmc-2008]

Thank you for the reply. Even in this market there is still the possibility of me staying here for another year? Oh my I hope you are right!

I have been on the fence about doing this for so long, there is a part of me relieved and another part of me freaked out.

But it is a buyers market here in so. cal and a renters market too. There is not a lot of inventory and also not a lot of rentals. As soon as something comes up on craigs list, its taken.

I hope I have at least a year!

Is Craigs list a good way to go?

[Drazil65]

Hi, yes you are probably looking to be there at least a year before all is said and done. If you do file in October the bankruptcy will stop the default/foreclosure process until it is discharged and closed. So add the 3 or 4 months of the bky process to your timeline. Being that you are only 2 months behind at this point you are not even in the notice of default stage letter yet (usually 90 days or more) so relax. Do not get nervous when you do start receiving those letters from the bank as they are kicked out of a machine when certain things trigger the event (like you are 90 or 120 days behind whatever is their trigger point).

In the mean time research bankruptcy chapters (7 and 13) and be as prepared and knowledgable as possible. Start to make your attorney consult appointments (first appointments are free), make 2 or 3 to start and keep going and asking questions until you find the right one. Read all the stickies posted at the top of these threads they are a wealth of information. Read, read, read everything you can on this site, you will not regret it. Also research and setup (its free) a Google Voice account on your computer and turn it on. It will be your life saver once the collectors start in, you will be very happy you did!

Last but not least, plan out a bankruptcy plan/timeline on paper. If you have not already done so and you are sure you are filing in the fall (at this point it sounds like you have some time on your side) stop paying all your unsecured debt as it will be discharged in the bankruptcy (if you do chp 7) and you would be wasting money you could be saving. Start saving the money you would spend on mortgage and credit cards towards the day you will have to move and your attorney fees. Relax and take a breath you will get through this as long as you have a plan. You will see you have options and you have control, you will be ok!

[memama]

My husband and I didn't miss a mortgage payment until a month before we filed and we have not had an issue finding a place to rent. However, where we are located the landlords are not big companies, but an individual entity, so they often do not require a credit report or want you to print your own one off. I imagine it might be much more difficult or next to impossible if you have to go through a property management company, and some individual landlords may be a touch more discriminating. We have a very good friend that is going to be putting her house up for rent and told us that she will be requiring a credit check...we asked her (she knows our situation) if she wouldn't rent to a family like us and she said "Absolutely not. I want tenants with perfect credit". So, it's just hit-or-miss sometimes.

I think you should save up as much money as you can and go from there. Oh, and we were in Idaho...we haven't made a mortgage payment since March and just got our sale date...December 18th. So a good 9 months from missing the first payment to sale date.

[btbeme]

It will take a while for the foreclosure, and you will get plenty of notice before - like a 60 day notice of the auction date. In CA, a year before foreclosure is not uncommon, but that time is shortening.

As far as renting, if you save what you would normally pay for your mortgage, that makes a very nice deposit for a landlord to consider. Be up front with them about your BK, and see what they say. Offering a 2 or 3 month deposit as security will often turn a no into a yes.

One big heads-up - check out the property before renting. Public records will often tell you or give you a hint about the property and the owner...is the owner about to be foreclosed on the property? Etc.

[dmc-2008]

Thanks! I have heard of people trying to rent out homes that are in foreclosure, so I will keep my eye open for that. Yes, maybe paying like 6 months rent in advance will look appealing! I also have a friend with good credit that said they would co-sign, so that might help.

I have been delaying this for some time and finally facing the reality of it.

Sucks, but it is what it is.

Thanks for the support and advice.

[drowning123]

If you believe that renting will end up costing more than your mortgage, then you should consider a home loan modification, and staying and paying until better comes along. The only problem is you'd still be responsible for home repairs, etc. It's good that you're delinquent. Banks are more willing to work out a modification when you're in default. Good luck.