Leaving after Pay Through

[AZFiler]

We are discharged (3/9/09) chapter 7 but paid through on our first and second mortgages. They are both current. We found a great rental home that is way cheaper and decided to move. What is the easiest/quickest/best way to give back the home we own?

[flnybk]

I wish someone would reply because I am in similar situation. I will be discharged in July then will be forced to give up home that I have paid through after that due to my interest only 1st being up in the fall and my 2nd and 3rd with different banks. We don't qualify for home remod due to income just over the amount on first. And we are upside down over $100,000. We want to just walk away as well. Is it better to just stop payment and wait for foreclosure? call them and hand over house? How does it work in FL? If I just stop paying will I still owe the money? Can I live in the house a few months and bank the money for rent and deposits? Or do I just start renting right away? Rent is HALF what my mortgages are $1500 vs $3000. HUGE savings.

[walkthaplank]

I can't give you the "correct" advice, but I can tell you what I would do. I would call the mortgage companies and tell them that you are abandoning the home as of "x" date. Ask them how they want to handle it. I believe that if a property has been abandoned they are able to step in and protect their investment. I've seen numerous homes in So Cal that had signs in the window saying home was found abandoned, xyz management company is caring for the property for abc lender with a phone number to call if you are the property owner.

BTW, when you call them, I would do it close enough to the time you are leaving that there are no surprises.

Good luck!

[monkatom]

I can tell you what I am doing. Had CHP 7 discharged Last May. Decided in January to let house go and have not paid mortgage. I will wait until the auction date to move out which at the earliest will be August so I will live here rent free for 8 months. Either way the house will be forclosed on so why move out right away instead of paying rent. Unless you plan to try and work out a short sale or deed in lieu but I have heard they are just as bad as a foreclosure since the foreclosure will not show on the credit report.

[Houseofcards]

Won't show on credit report ?

"Unless you plan to try and work out a short sale or deed in lieu but I have heard they are just as bad as a foreclosure since the foreclosure will not show on the credit report."

If you get foreclosed on after discharge isnt that two derogs on the credit ?

[monkatom]

No the mortgage should show as IIB if you did not reaffirm. Therefore the foreclosure and any lates should not show. The foreclosure will be public records though so when trying to obtain a future home loan foreclosure rules apply which are stricter than BK.