Up for vote!

[halelani]

I have 400K in equity in my home with 75K unsecured. I filed BK13 today with attorney who said it would take 1 month to file paperwork (that's a long time).
Any way I want your opinion, would you,

1-Go with BK13 knowing it will be incredibly hard to make 400 a mo. to the trustee for 4 yrs and risk going to BK7 or

2-Wait and see if you get laid off at your job (it's just a matter of time) and quit making house payments, foreclosure inevitable (ah no choice)

3-Put house on market and hope it sells (but you've already done that and just took it off the market)

4-Try to get an Obama modifcation not knowing how that all fits into the BK thing.

5-Go commit a crime that would allow you to be put in prison for 5 years and wait it out...

6-Walk away from the house, the job, and the debtors

I'd appreciate any of your input, and I'm not Judge Judy.

[hopeforus]

You should at least try a modification. It can't hurt to try. That's what we are in the process of doing with our 1st mortgage. Our current payments are only 130.00 more than we were prepared to pay for rent if we let this place go. So we are hoping and praying that we can get it to 1200 and then we could do a 13 maybe to strip the 2nd and cram our van down. We totally could do a 7 but not sure if doing a 13 to do the strip and van would be worth it...

I would try #4 at least.

[DebtEnder]

I posted in your prior thread but I think you answered one of the questions I had.

You had the house on the market and it did not sell, that means you don't have the equity in the house you think you do. As that was one of the big issues why you wanted to do a chap 13, to protect the house, I think your next step should be to get a proper appraisal done on the home. Regarding that get one that specializes in REO(bank owned) type properties as they are there to take note of all the little things that put buyers off and come up with a price that can sell fast. Banks don't like to hold property for long. Most appraisers are little more then number hitters that ignore anything that might not justify the loan amount the loan officer wants to give.

Also as you said you were trying to sell just how low did you drop the price? OR home exemption is 30k single filing if you still hold a mortgage then that can eat into the equity even more.

Always try for the modification regardless, if you do go with a 7 and keep the house then it's already in place and done and you can use all the expenses you have now to justify the need for the mod. Now if you are so far in the red that even if the extend the term to 40 years, drop the interest to near 0 and remove any past due fees and still can't get it under like 36% of your gross income then there is nothing they will do. However maybe after bankruptcy you will be closer to the mark, just have to run the numbers.

[albacore44]

I have 400K in equity in my home with 75K unsecured. I filed BK13 today with attorney who said it would take 1 month to file paperwork (that's a long time).
Any way I want your opinion, would you,

1-Go with BK13 knowing it will be incredibly hard to make 400 a mo. to the trustee for 4 yrs and risk going to BK7 or

2-Wait and see if you get laid off at your job (it's just a matter of time) and quit making house payments, foreclosure inevitable (ah no choice)

3-Put house on market and hope it sells (but you've already done that and just took it off the market)

4-Try to get an Obama modifcation not knowing how that all fits into the BK thing.

5-Go commit a crime that would allow you to be put in prison for 5 years and wait it out...

6-Walk away from the house, the job, and the debtors

I'd appreciate any of your input, and I'm not Judge Judy.

With 400K in equity, i would look into a reverse mortgage, then pay off the creditors, and live in your home as long as you can.

[halelani]

I agree, DebtEnder, your home is only worth as much as someone will pay for it...so my equity may not be very much, no matter what the appraisers say. If I could get a loan mod it would save me, so I will throw everything at it. I'm thinking to lower price of house to 300K just to get out from under it. It was sold twice at $450K and buyers fell off, still can't figure that one out, had to do with the credit fiasco I would assume. Bottom out price would be 250K for me to clear even. Any one wanna buy a 5600sq ft house with incredible views???

[StartingOver08]

Actually, Albacore's idea is a good one. Reverse mortgage or sell it.

[DebtEnder]

Not looking to move out to the left coast atm but thanks

You said you have 85k in the mortgage 75k in debt and we already know if the trustee gets it you will get at least 30k out of it filing alone. With these numbers we can come up with with an absolute rock bottom price of ~200k ( still have to add in selling cost and other stuff)that will still be better for you then bankruptcy. Anything less then that and you would come out with more cash in the bank doing the chapter 7.

Of course if you can get a loan mod and that allows you to pay the bills then well your golden and you still have bankruptcy if your job goes anymore downhill

[albacore44]

I agree, DebtEnder, your home is only worth as much as someone will pay for it...so my equity may not be very much, no matter what the appraisers say. If I could get a loan mod it would save me, so I will throw everything at it. I'm thinking to lower price of house to 300K just to get out from under it. It was sold twice at $450K and buyers fell off, still can't figure that one out, had to do with the credit fiasco I would assume. Bottom out price would be 250K for me to clear even. Any one wanna buy a 5600sq ft house with incredible views???

Are you in the Inland Empire. There are still a lot of dilusional people here who think their house is worth what it was in 2006. Mine has gone down at least 50% from the high. Just received a Zillow report in my e-mail today and it dropped another $25K over last month.

[halelani]

I thought you had to be at least 65 yrs old to qualify for a reverse mtg. So I am going to try to sell it at 50% of its value, LOL. Do I have any bidders? Indoor pool, nice views....

[halelani]

HaHa, on Zillow my house is 950K, oh boy oh boy! What a deal, any buyers, here now at $250k?

[StartingOver08]

HaHa, on Zillow my house is 950K, oh boy oh boy! What a deal, any buyers, here now at $250k?

I think we are the wrong target market!