Sigh...I'm getting discouraged.

[BrokeDavis]

I am going to file my bankruptcy in a couple of weeks. I was in the process of a payment arrangement with the HOA and the bank has now set a sale date for next month. I know I will eventually have to move, but I'm finding the prices of rent will put me rather close to what I would pay in a chapter 13. Sigh... This is frustrating...

I have read in a few place that it will be hard for me to acquire a rental property if I am in the middle of a chapter 7. Would it be best to just go ahead and start looking? I found one that I liked, and can afford, but it won't be available until May. Would it be a problem if I secured this apartment using my tax return, even though I won't move in until May? Do you think the trustee will have a problem with that?

I am going to call my attorney tomorrow, but wanted to know if anyone has experienced this, and if so... What did you do? I'm in Florida btw... Thank you in advance.

[bcohen]

In some parts of the country, asking rents have skyrocketed to the point that it actually costs less to own than it does to rent. Florida is unfortunately, one of those places. If the current rents in your area are close to what you'd pay in a Chapter 13, then maybe dumping the house and filing for Chapter 7 is not your best option. Remember that while rent prices can and will continue to rise, your Chapter 13 payment will not. Also, if you file for Chapter 13, you will still be able to discharge some debts, for example, it may be possible to discharge interest and past-due fees owed to the HOA and only have to pay the actual dues through your plan.

[BrokeDavis]

I looked over my recent invoice from Nation Star (mortgage company) and I believe it says past due amount is just around 20k, however that includes all attorney fees and what not. I know I qualify for a 3 yr plan, but he spread it out to 5 just to lower the payments. I'm very close to increasing my income, and I keep thinking that at the end of 5 years the mortgage will go back down to $600, but I don't want to set myself up for failure. He did say I can try for a modification and that will drastically drop the payment but many mortgage companies haven't been wanting to mediate. I also know with the 13 I will have the homestead exemption and he can exempt my tax return. Since I have a male child I will need a 2 bedroom apartment, and they run between $850 and $1000 a month. I'd have utilities to pay at either resident but I know I leaned toward a 7 because I will have the opportunity to eventually save a "nest" where with a 13 it won't be possible.

The cost of living down here pretty much sucks compared to salaries.

[Blossoms]

I'm in northeast Ohio, and that's the case here too, with rents. It's cheaper in most places here to own a home rather than rent. My mother decided to let her house go into foreclosure, for various reasons, and is staying in the house until the foreclosure is complete.. But now the problem she's facing is that she can't afford to rent an apartment outside of the city. Her rent will be a lot more than her mortgage.

My husband and I have never owned a home. We've been renting together for the past 19 years, mostly single family homes. It makes me feel sick and sad when I think about how many tens of thousands more we've paid in rent over the years, compared to what we would have spent for mortgage, taxes, etc., if we had owned a home all these years.

[BrokeDavis]

One thing I noticed us the insurance for the house is no longer included in the payment. How would I go about that if I was too file a 13? Would this be something that would have to be paid outside of the plan?

[tobee43]

we were in or are in florida. money spoke although at first we rented from a distant relative. there are still sooooooooooo many empty places in florida i don't think you will have a problem. just be honest and upfront. since you are not paying your mortgage just keep staying there until you can't and save money for the move. bchoen, i haven't seen rents skyrocketed at all here? at least not yet, however, i'm not speaking about an ocean front apt or anything. here you still have deals like crazy, like first 4 months free!!! rent for $99 down no deposit!