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Worth negotiating with mortgage after BK?

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    Worth negotiating with mortgage after BK?

    Hi,

    Our bankruptcy was discharged this past March. We did not affirm either our first mortgage with Countrywide, nor our second with Ditech. Initially, we had told our attorney we were going to stay in the house. However, we realized around discharge that we were not going to keep it. Again, though, we never reaffirmed with either mortgage companies.

    Well, as luck and good fortune would have it, I have gotten a much better paying job offer out of state, and we will be moving in a few weeks. Now I'm getting nervous about having a foreclosure on our credit report and its effect on renting and eventually buying in a couple of years. At this point, my scores are all around 700, and I don't want to mess that up.

    So my question to you guys is this. Would it be advantageous for me to attempt to negotiate a short sale or some other remedy with Countrywide and Ditech? What I'm hoping to do is either deed the property back to Countrywide or do a short sale. Then I would offer a small amount to Ditech to get them to release the lein, say, $5,000 on the $43,000 balance.

    Or isn't it worth all the hassle? I've been reading that we could probably qualify for a mortgage 2 or 3 years after discharge. But another concern is that if the foreclosure takes a while, that 2 or 3 years will be more like 4 or 5 years.

    Anyway, should I contact the mortgage companies and try to do something? Thanks so much for any responses!!

    Rick

    p.s. Does anyone think I could do a deed-in-lieu with Countrywide and offer Ditech, say, $5,000 to release their lein, all in lieu of foreclosure? Ditech will get nothing at all from a foreclosure. Our market (like so many other places) has tanked, and I doubt Countrywide will even get what its owed at foreclosure.

    Countrywide: $107,000
    Ditech: $43,000
    Value of home maybe $110,000
    Last edited by RickInMich; 06-18-2008, 03:50 PM.
    11/29/2007 - Filed Ch 7
    01/08/2008 - 341 Hearing
    03/12/2008 - Discharged
    03/21/2008 - Closed

    #2
    why do you think it will be 4-5 years until you can get another mortgage. I have read 2-3 for an FHA. I don't know if this helps your dicission at all. Do you have a buyer interested in a short sale? It could take a long time to sell your house. We had ours on the market for 10 months and still nothing, we gave up. We are filing 6/26 for chapter 7

    Comment


      #3
      I think you are over-estimating how difficult it will be to rent. If you have a solid payment history, and explain to rental management the situation, you should not have a problem renting even with a foreclosure.

      You won't be able to do a deed in lieu, those only work if there is only 1 mortgage or if both mortgages are with the same lender (and even then it is difficult because the notes could actually be held by different investors). And generally, it can be very difficult to do a short sale when different lenders are involved.

      You should look into a short sale, but I wouldn't kill yourself or spend an exorbitant amount of time trying to get it done.

      Comment

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