Trying to obtain new home rental lease

[kajeno2001]

Hello everyone! This is my first post here but have been reading for a couple of weeks now.

My husband and I filed Chapter 7 back in early June and had our 341 meeting Wednesday, June 17. Everything seemed to go well and it was very quick and easy.

Here is my delimna and I am not sure what is the right way to go about this. I am hoping someone can provide me some words of widsom.

My husband and I have decided that we are going to separate and divorce which was decided on a month ago. We have three children, 12 and two just turned 6.

We are not going to reaffirm our mortgage because our house is under water and because of the divorce. I can not afford to keep the house and my husband surely won't be able to either so it will eventually go to forclosure. We are still current on our home because once the bankruptcy is over I am not sure how long the forclosure process will take and I am not sure how long it will take me find a place to rent.

I have been looking and found a really great home that would be great for me and the kids and one the I could actually afford and be able to save money in the process. My dad has said that he would consign for me because of the bankruptcy and that is where I am not sure if my problem lays.

I am hesitant at the moment to sign a lease because I am very anal that something will happen with the bankruptcy and cause it to be dismissed and then I won't be able to afford the rental and my dad will be stuck which I do not want. I really don't think it will be dismissed but one never knows what the outcome will be just like I didn't think I would be getting a divorce. Our attorneys says he doesn't think this is possible and is 99% sure that it won't happen but I am always in the mindset that you never know what will happen in the end.

Would you all advise on waiting to sign a lease with my dad as a cosigner until the bankruptcy is discharged, which will be September 16, in case by some chance it is dismissed or would you go ahead and sign the lease?

Thanks again.

[justbroke]

Why are you not considering a strategic default on the current mortgage/home and stay there for a while as you save? That would give you temporary housing for some time and allow you to save some more money. That would also insure that, in the highly unlikely event the bankruptcy does not discharge, you have not changed anything. Is your husband intending to stay in the family home? You should really think about that.

(To me, it looks like Maryland foreclosures are at least 180 days from the date that you miss a payment -- for judicial foreclosures. You may even be able to stay past 213 or more days after default, if you go through mediation. Perhaps, at that point, some of the HAMP/HARP programs could get your payment low enough. I can't speculate on whether those programs would help, but you could take advantage of the process. I would stay as long as possible and save every dime.)

[Drazil65]

I second staying in the house until the foreclosure is almost complete. You will probably have at least 6 to 8 months of "saving" money as you will not be paying anything and can build up the savings account. We had no problem with getting a lease for a townhouse (individual owner) about 10 months after our first missed payment. We actually sold our house in a short sale and if we did not sell we would have had another 6 months on top of the 10 months before the foreclosure would have forced us out. That is a lot of saving.

[keepmine]

Would agree with the others. Stay until they blast you out!
As to the divorce-timing is everything. Assets obtained from a divorce decree that occured withn 180 days of the bk filing date can become property of the bk estate.
Speak with your lawyer to see if this would impact either of you and time the event accordingly.

[kajeno2001]

Thanks everyone for the advice. I am wanting out of the house asap because of the separation and divorce. The husband was going to stay here until I have no idea. I'm not sure if he will stay right before the house is foreclosed on or way before it is foreclosed on. It is very hard to find a place to rent in the school district that I am in and that is why I am looking to rent as soon as I can but like I said...I just don't know if I am better waiting until the bankruptcy is discharged or if it is okay now.

Another question. We filed the first week in June and had our 341 this past Wednesday without any problem. It was a lot easier than I thought. We are still current on our mortgage. My question now is if we stop paying the mortgage we will have two missed payments prior to the bankruptcy being discharged, will that make the Bank (Bank of America) file an objection because we were current before and 1 month after filing bankruptcy then all of a sudden we just stopped and both of us are still living in the home until I find a place, which in turn would help us both save more money than we are now and have more money in the bank (which I am not sure we should keep in the bank or put aside in case any questions are asked)? I just don't know how all of this works out.

I think I am more anal than not because I am very unsure of this whole process and adding a separation/divorce into the mix and three children does not help my thought process to make sure that nothing messes this up.

[justbroke]

The bank will not file any objections, so please do not worry about that. If you are going to be the custodial parent, I would rather have seen you with the house for whatever time you could stay (prior to foreclosure). In any event, please do not worry so much about being in the same District, as being able to provide for your family.

[LadyInTheRed]

Don't live your life based on fear that your BK will not be discharged. It sounds like you have no actual reason to think there will be any problem with your BK. So, assume it will be discharged and move forward with your life.

Have you tried applying for a rental without a co-signor?