Thinking of moving

[daveinIL]

Our ch7 is all over and done with. Discharged Aug '11 and closed in Sept '12. We rode through our BoA home mortgage and did not reaffirm.

We are now thinking of moving. Our thoughts are that all the damage has been done regarding the mortgage since it was IIB and in order to save money we should simply stop paying the mortgage and start the waiting game for them to foreclose and make us leave. Currently in IL that process is approaching two years on average!

Is this really a viable plan? We are currently current on the mortgage payment (at least on the primary...the HELOC is in negative equity territory and hasn't been paid in almost two years).

Is there anything additional that would count against us if we have a foreclosure or as I said, has the damage already been done?

[tobee43]

since illinois is a judicial state, it does take longer than those states that are not. to foreclose the lender must go via the court system and the courts make certain everything in the documents are in order. that process, even prior to all this mess, usually took and takes quite some time to complete in most cases. also look at your counties sheriff's site and you can see how quickly they are moving

many people chose to stop paying and save their money for their move. sometimes it may be in your best interest since you are no longer paying your mortgage to secure a rental (depending on the area of the country you live in) prior to you moving out, because as time goes, your credit, will begin to reflect what's going on, and again depending on where you are, it may be a bit harder to secure your rental.

i know in our area money is what counts. if you offer someone i.e. 6 months in advance plus security you're in. while other cities i have heard they have applications and credit checks etc.

i would check out the area you are wanting to move to and just find out what the process entails. we found, although, again, in the area we were moving to, we were best off going via a private owner as opposed to a management company. others will chime in and hopefully give you some other experiences that will be helpful.

best of luck to you! i'm certain it will all work out and i would save save save!!!! right up until the last moment if you can.

[btbeme]

While you are correct in assuming that you can end payments and eventually walk away, there is a penalty, of sorts, included in doing so. Once you BK a home mortgage, it would take about 2 years before you become eligible for a new home loan. For some folks that is important.

However, when you allow a foreclosure (or short sale, or deed in lieu, etc) and the bank(s) are not "made whole" on their loan, you reset the clock on being able to get another mortgage. That clock reset starts a three year period in which you will not qualify. Most lending institutions take a very dim view of a foreclosure, and it will be tough - even three year afterwards - to get considered for a new loan.

If eventual home ownership is of any importance to you, take that into consideration.

[tobee43]

you know bt we hear that story over and over don't we...about when the time is marked and what it says on the FHA site etc.

truth be told i have seen such few get mortgages nowadays after a bk. remember last month we had someone who got a VA less than two years out i think....i don't know anymore, the stories of getting current mortgages after filing within the past few years are stretchy at best, wouldn't you agree?

i don't know anymore, i do know for us they might never foreclose so i wouldn't have to worry about the foreclosure part. we figured or thought if we want another house after this one, it will be with the VA, or conventional with half down or something. but that's down the road, i still have to pay off this mortgage first! before i start worrying about another.