please help in deciding bK or foreclosure

[Buddy]

We are not behind on anything yet.
Most likely will miss Sept. House payment.
So any advice would be greatly appreciated.
We are trying to decide wether to do a 13BK or foreclosure.
we are way upside down. house is worth about 210,000. First is 221,000
second is 57,000 and third is 74,000 for a total of 352,000.
we atlked to a bk lawyer who said to stop all cc bills and the second and third. this will save us 3,367 a month. But if we stop just the 3 mortgages it saves us 3,341.

So i think we avoid bk and see if the banks will work with us.
I think we are so upside down they will not be willing to work with us.
I am thinking of hiring a mortgage negotiator but they want 2500.
has anyone hired a negotiator?
Has anyone worked with Greentree, the negotiator said they do not even work with you unless we are current.

[atolar]

well, do you want to save the house?

if you file ch 13, will you be able to keep the house?

we filed 13 thinking we could save our house and then I was laid off, so now it's ch13 and foreclosure

[Buddy]

I would like to if the banks would be willing to negotiate.

You see if we qualify for the 13 we could possibly strip the second and third
and then i would keep the house since we would only owe what it is worth.
however I am worried about a bankruptcy affecting future earnings.
You see my business fluctuates and what happens if the next year or so i make a bunch of money won't the 13 monitor that and ask for more money each month putting me in a position of not wanting to take on the extra income.
where as if we go only into foreclosure (walk away) my future income would not be affected.
We are in the depressed metro detroit area and i don't think the value will increase for years to come.
I can find a comparable rental for what my first mortgage is.

If you are in a 13 and foreclosure doesn't that mean they will be refiling it as a 7?

[OhioFiler]

I think a lot of people are walking away from their upside down homes without the banks pursuing them.

[debtprison]

One thing to keep in mind is that what the house is valued today isn't necessarily what it will be valued at in the future. So being "upside down" really doesn't mean much besides the ability to leverage equity. The question is more can you make the payments and the answer is No.

You can rent a great house in most areas for less than $1,000 a month. That would give you a lot of extra money with which to pay off bills and build up some savings again...

[HakunaMatata]

I think a lot of people are walking away from their upside down homes without the banks pursuing them.

OF-
Do you suspect this trend will continue? Considering the SOL in Michigan is years, couldn't a lender later revisit this outstanding debt? If not, why wouldn't this occur? Is there a greater benefit to the lender in writing the debt off immediately rather than pursuing the original debtor? We're experiencing great change and I'm not confident past lender actions rightfully forecast our future. I welcome your keen insight!

Buddy-
I'm in Metro Detroit as well; and, I don't think we've bottomed out yet. I've been watching property values in Oakland County continue to plummet. I'd definitely keep this mind when assessing your situation. The appraised value of your house today may not be the appraised value next year. So many of us lived under the illusion that our suburban properties were safe. This notion existed for years and it's been a bit difficult for me to unravel all that has occurred. I've seen some amazing deals in my city and I've experienced frustration with not having the means to pursue them. Ironically, these "amazing deals" have been further reducing. IMO, our economy hasn't stabilized enough to accurately project into the future.

Best of luck to you in your decision making process!

[Dizzy]

well, do you want to save the house?

if you file ch 13, will you be able to keep the house?

we filed 13 thinking we could save our house and then I was laid off, so now it's ch13 and foreclosure

That is something I worried about, too. I have decided to just walk away from the house, file a 7, rent, and let someone else worry about repairs.
We haven't made a house payment since May and haven't heard anything about the dreaded "F" word yet but are moving anyway as we found a place to rent. I say a bird in the hand is worth two in the bush.