Giving up our home!

[concerned]

My attorney is supposed to call tomorrow. We are totally confused. We are educated individuals and I'm embarassed that we can't seem to understand some simple laws pertaining to bankruptcy. I think if I understood exactly what was going to happen and what we would have to pay back, I wouldn't be so stressed!

We paid our attorney in full for his fee several weeks ago because he said full payment clients were given top priority. Well, today they told me there is no way ours will be filed by the 17th. What's worse, I don't even know if this is bad or good since I don't understand the difference between if we submit now or later. We are currently paying $2400 plus per month for our mortgage and I am really scared that even if we file a ch. 13, we will end up paying close to this amount between our new rent & repay amount anyway.

I guess I don't understand if we will be forced to do a 13 even with giving up our home, and if so, what we will have to repay. Do they expect you to repay the difference on what they sell your home for versus what you owe the bank. We owe $224,000, but my guess is it will only sell for $170,00. Do we pay back the difference. Is this situation an automatic 7 just because we are giving back our home? Our income is $87,000 so will we have to file a 13 and repay this difference plus our unsecured debt? You can see I'm really confused about all this!

[BassBoy]

Pmi?

I guess I don't understand if we will be forced to do a 13 even with giving up our home, and if so, what we will have to repay. Do they expect you to repay the difference on what they sell your home for versus what you owe the bank. We owe $224,000, but my guess is it will only sell for $170,00. Do we pay back the difference. Is this situation an automatic 7 just because we are giving back our home? Our income is $87,000 so will we have to file a 13 and repay this difference plus our unsecured debt? You can see I'm really confused about all this!

Do you have PMI? Private Mortgage Insurance is a type of insurance that helps protect the mortgage company against losses due to foreclosure. I'm still searching for more in depth info on this, but if you have PMI, you may want to contact the company that provides the insurance (usually a seperate entity from the lender) and ask this question. My understanding is that the unpaid balance after the Trustee's Sale should be covered by PMI. But do not quote me on that just yet.......I'm diggin' for more info.