We originally planned to file a 13 to save our house. Have been waiting to allow some time to pass so that our 6 mo income was more accurate, as I was working and now am not (medical issues). During this time, I have been able to talk to my husband more about surrendering the house and he has agreed. However, we would like to be able to stay in it until we absolutely have to leave. It is scheduled for sale on Dec 11. The mortgage company has solicited us to send in modification paperwork anyway, and told me yesterday that while a mod is being reviewed, they will not sell the house. This got me to thinking about how to stall everything, I need to know if this is a reasonable plan:
Submit mod package in early to mid November. The mortgage co says they have an 8 - 12 wk window right now on reviewing them and would postpone the sale of the house until a decision is made.
I don't think we'll get the mod. They modded this loan for us last year when we had fallen behind (its been 2.5 yrs of up and down with me medically and struggling to stay afloat). We have a 4% interest rate over 40 yrs now. The only way I can see a mod going through is if we do not claim his VA disability benefits as income, and I think we have to? We would be at 37% on the mortgage debt/income ratio thing if those benefits are excluded. Otherwise we're at about 27%. My point is that they may begin review, see immediately that we're not eligible and then resume the foreclosure sale. IF that happens, then we plan to go file so that the stay is in place. I understand that they will motion to have the stay lifted and then reschedule the sale, but we will probably have bought at least a couple of months of extra time?
In the best case scenario, we will submit the mod package, they will approve it somehow and we'll be brought current. In that case, we will then go file for CH 7 and stay in the house but IIB it and not reaffirm. Yes, we can afford it, but we've been behind the 8 ball trying to manage everything for so long that we always owe someone something in large quantity.
In the midrange scenario, they will review the mod package over a course of 8 or more weeks, deny the mod and reschedule the sale. We will then go file CH 7 and invoke the stay. They'll lift it, we'll IIB the house and surrender eventually.
In the worst case scenario, they'll review the mod and deny and maintain the sale schedule, so we'll file to invoke the stay. They get it lifted, reschedule the sale and we'll leave when they tell us we have to.
In all of these scenarios, I see it taking until at least January (at the earliest) for anything to happen that could require us to leave. In the midrange, it could be closer to early Spring or at least the end of the school year.
Does this sound like a workable plan? Am I missing any key points of how this works? We will be prepared to move into a rental but are trying to extend that out as long as possible, both to save and because both my adult nephew and adult daughter may move out by that time and we could get a smaller place with an even smaller rent. If we move in the next 3 or 4 mos, we'll have to plan rentals to include them.
Oh and we're in ID, which is non-judicial but has a 6 mo redemption period. Which I understand is not available if foreclosure is done non-judicially and as far as I can see, that's about the only way it happens here.
Thanks for any help or advice!
Submit mod package in early to mid November. The mortgage co says they have an 8 - 12 wk window right now on reviewing them and would postpone the sale of the house until a decision is made.
I don't think we'll get the mod. They modded this loan for us last year when we had fallen behind (its been 2.5 yrs of up and down with me medically and struggling to stay afloat). We have a 4% interest rate over 40 yrs now. The only way I can see a mod going through is if we do not claim his VA disability benefits as income, and I think we have to? We would be at 37% on the mortgage debt/income ratio thing if those benefits are excluded. Otherwise we're at about 27%. My point is that they may begin review, see immediately that we're not eligible and then resume the foreclosure sale. IF that happens, then we plan to go file so that the stay is in place. I understand that they will motion to have the stay lifted and then reschedule the sale, but we will probably have bought at least a couple of months of extra time?
In the best case scenario, we will submit the mod package, they will approve it somehow and we'll be brought current. In that case, we will then go file for CH 7 and stay in the house but IIB it and not reaffirm. Yes, we can afford it, but we've been behind the 8 ball trying to manage everything for so long that we always owe someone something in large quantity.
In the midrange scenario, they will review the mod package over a course of 8 or more weeks, deny the mod and reschedule the sale. We will then go file CH 7 and invoke the stay. They'll lift it, we'll IIB the house and surrender eventually.
In the worst case scenario, they'll review the mod and deny and maintain the sale schedule, so we'll file to invoke the stay. They get it lifted, reschedule the sale and we'll leave when they tell us we have to.
In all of these scenarios, I see it taking until at least January (at the earliest) for anything to happen that could require us to leave. In the midrange, it could be closer to early Spring or at least the end of the school year.
Does this sound like a workable plan? Am I missing any key points of how this works? We will be prepared to move into a rental but are trying to extend that out as long as possible, both to save and because both my adult nephew and adult daughter may move out by that time and we could get a smaller place with an even smaller rent. If we move in the next 3 or 4 mos, we'll have to plan rentals to include them.
Oh and we're in ID, which is non-judicial but has a 6 mo redemption period. Which I understand is not available if foreclosure is done non-judicially and as far as I can see, that's about the only way it happens here.
Thanks for any help or advice!
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