So confused about what we should do with our house. Was going to give it up...

[hopeforus]

but now we are not sure.

I have posted here in the past about how my husband had a job in Ohio and we decided to leave our house in WI and join him there. We have about 70k in cc debt due to job loss and injury last year so will be filing bankruptcy at some point. We stopped making payments in December. We planned to include our home in our bankruptcy.

Hubby left his job in Ohio and came back here to Wisconsin and had a really great job now but it's not enough to pay our mortgage. Our first mortgage is 1050.00 a month before property taxes... our total payment for the 1st each month was 1350.00. We have a 2nd mortgage which was like 350.00 a month. 1st mortgage is like 155k and the 2nd is 40k. Our house isn't worth this right now. I think we are about 40-50k upside down. our last tax estimate on zillow says 147k.

We have been looking at rentals and decided to wait until May to get serious about looking. Since we know that we have 6mos redemption. We are looking to pay 1200.00 max for rent.

We got our summons today for the 1st mortgage. I got freaked. It was so horrible to be served those papers. I felt so dirty. Not to mention I was in my jammies still

I was looking over the papers and I don't know... I'm kind of wondering if we should just try to work something out with the 1st mortgage (USAA) and let the 2nd one go with the bankruptcy. I know the lien stays attached to the house... what does this mean exactly?

If we can get USAA to work with us a little bit... we can afford to stay in the house. If we could get the payments down even 100.00... the mortgage payment would be what our rent would be anyway.

Is there any reason we should not do this? We are in an awesome school district. I have a special needs kid. An 8yr old in diapers and nonverbal. This school has been amazing for him and I really would prefer not to leave it It's REALLY hard to find places big enough for 4 kids for less than 1200.00 a month. We were having to move the toddler boy in with his 5yr old and 10yr old sisters. We have a 4bdrm house here. With a nice backyard.

Should this be something we try to do? We are so confused.

And as for this summons... I have no idea what to do with it at all. No idea what to say... how to reply...

Sigh.

Thank you for reading.
C

[hopeforus]

anyone?

I called GMAC today and they told me to print off the financial forms and fax them in. Will take 14dys to get in the system and another 30 to hear anything...

[Minnymouth]

Have you gotten a reply from GMAC? What options did they offer you?

Also were you filing Chapter 7, if so you must be current on all house payments in order to keep your home.

If you are filing Chapter 13, then back owed house payments can be added into your Chapter 13 payment plan, but the second mortgage would probably be part of the plan also. Also you must be ABLE to make the payments the court is asking for, for 3-5 years.

Bring us up to date.......

[hopeforus]

I lost hope anyone was going to reply to this LOL

Well we are hoping that we can get a mod before filing ... thus making our payments up to date by that time.

I don't want to do 13 and don't think we would qualify either. I'm hoping this new GI Bill doesn't mess that up because my husband is going to be getting 1250.00 a month housing allowance when enrolled in classes. But of course he will only be getting that when in school. So we can't rely on that money for that long.

If GMAC doesn't mod us... then we will just give up the house. I still need to get the paperwork faxed in but hope to send that to work with hubby tomorrow.

I just realized I said USAA in the first post but yeah, it's GMAC we deal with for the 1st mortgage.

We really need to get some consults set up. I'm starting to get confused.

If we can get GMAC to modify us... then maybe it would be best to wait as long as we can to file bk so we can hopefully work out a settlement for the 2nd mortgage? Then we wouldn't have the lien attached when we file Ch7?

[hopeforus]

Oh and I won't hear from GMAC for 6wks.