Opinions, please...

[yoyoma51]

My wife and I have had our mortgage discharged as part of our Ch. 7 last year.

We have continued to live in the house and make payments on the mortgage (1st & 2nd to same company, GMAC).

We owe about $114,500 and the house is worth about $105,000.

We will be needing to move as my wife is getting her Pharmacy Doctorate and there are no pharmacy schools close.

We are considering putting the house up for sale in April '09 AND stopping making mortgage payments at the same time.

What do you think of this strategy? We will owe a little closer to what it is worth (assuming value does not fall more).

If we list it with a real estate agent, will this put us in a stronger position for the lender to accept a short sale? I assume it will take some time to sell it, so we will probably be able to live in it for some time without making payments.

Opinions? Anyone here done something like this?

[HHM]

So long as you are prepared to allow the home to go to foreclosure, there is nothing wrong with that plan, except that the idea is pointless.

The fact that you filed a BK does not make the lender more or less likely to accept a short sale...and in all honestly, why even bother to do a short sale since there is no benefit to you for doing one. And don't give me that misinformed realtor crap about not having a foreclosure on your credit report, read some of the posts about short sale on this forum. (there is absolutely no difference regarding the negative impact of a short sale or foreclosure).

If you are not going to make any money on the sale, you have already discharged the deficiency in the BK, why even bother with the hassle to put money in a real estate agent's pocket.

Don't kill the messenger, you asked for opinions...

[justbroke]

Opinions? Anyone here done something like this?

I continue to wonder why people who have discharged a mortgage in a Chapter 7 want to short-sell or deed-in-lieu on real property.

Just stop paying and walk away. Try to use as much time in the home as possible to save up some money.

Are they reporting the mortgage status to the credit bureaus... probably not.

[MomIcantFindmy]

I agree. When you are ready to move, stop making payments and leave. No problems. House is foreclosed and everything is over.