Cant afford home after ch 7

[shookup07]

Facts: Filed Ch 7 2/2005; Discharged 8/2005 Michigan
Kept home throughout Ch 7
Cant afford home; cant sell it (listed off and on for 1 year)

Question: How can I get out of this? Let Countrywide foreclose?

Question: If they foreclose, sell it for less than I owe, what happens?
Will the courts order a judgment against me?

Can Countrywide come after me for the deficiency??????

[keepmine]

Dis you reaffirm the mortgage? If not, you walk away with no liability for a deficiency balance.

[shookup07]

I DID NOT reaffirm! Lucky me! God, when will this hell be over!!!! Attorney said do not pay any more payments. THey will take house back in 10 or 11 months.

[onepowerfullady]

I am glad that you did not reaffirm your loan. You can totally walk away from that headache and startover again. I am planning to do so myself. You can start saving some money now to get a new crib.

[keepmine]

Yet another reson to never reaffirm unless you're forced to.
Were I you, I'd stay in that house until the sheriff escorts you out. You can save a bunch of money over 10 months-just stay current on the utilities.

[SinkingFast]

Just an FYI for you,.......... Your Credit will show a double whammy if you let CW Foreclose. Foreclosure is a Public Record that remains on your credit for 7 years. So you'll have the BK and Foreclosure showing.

Call CW and ask to speak to the Work Out Dept. Tell them you want to discuss a Short Sale. You'll have to apply and be approved, but maybe they'll let you sell your house for less than you owe.

You'll be asked to write a Hardship Letter, a sob story about why you cannot afford to pay your payments and need to sell the house quickly. Be sure to tell them that you've tried to sell and how many months you were on the market previously.

They'll also want the last 1-2 years of income tax returns, pay stubs, list of expenses, etc. Just like you're applying for the mortgage only in reverse.

If you get approved and do a Short Sale, your Credit will be better for it. The CRA's will report Sold with a deficit balance notation. Much better than Deed in Lieu or Foreclosed.

If you can't get a Short Sale, just go DIL instead of running up a legal tab for CW to Foreclose. DIL is even better than Foreclosure. Only slightly, but some better.