When is enough??

[dasmom]

Due to job loss got behind on mortgage. Found a better paying job and paid 3 month forebearance payments (8/08, 9/08, and 10/08) then modification denied in 11/08. Bank refused further payment and filed Lis Pendens 4/09. Have been in mediation through the court since then. Approved offer through NACA 10/09, but no paperwork from the lender received. NACA not responsive; they keep telling me to wait.

Submitted paperwork through mediation process to be considered for modification in 6/09. Told would be considered for HAMP. No response on HAMP. Bank requested paperwork again 12/09 because income information needed to be updated. Still no response to modification request and mediation has no teeth. Can't refinance. No short sale.

Getting close to not passing median income test for Chap 7. Thinking of just walking now and filing Chap 7 - it would wipe out mortgage deficiency and medical bills. According to lawyer, I should file Chap 7 before income goes up.

Looking for apartment approval before filing Chap 7.

Can't afford Chap 13 payment. My state has deficiency judgment after foreclosure and I can't afford wage garnishment for that either.

I guess I can hold out hope that the lender will negotiate something, but after 15 months I think the handwriting is on the wall (NO). I know that the decision is mine ultimately, but just needed to put this out there in case I haven't thought of a solution.

Any words of advice?

Thanks for "listening".

[BK2008]

Been there, done what you're doing.

Not sure what state you're in, I filed Chapter 7 first, then I just stopped paying on my house, saved the cash and stayed in it until it was close to auction. That money I saved (and I did not pay the HOA fees, or the prop taxes either that year) gave me enuff to move to another state, where I went back to work within a month (after 8 months of being unemployed).
Just before the filing, I financed a cheap used car, and turned in my expensive honda back to the finance company, and stopped paying that, so any lates/non payments could not be reported to the CRA's because I had already filed BK. Ditto with the house.

I had no real difficulty finding a place to rent, they merely doubled my deposit to $800, I wrote a nice note to the landlord about my situation, and my year is now up. I will be moving to another place that is not requiring me to put down additional deposits.

Just file for BK and be over with it. I have recovered quite nicely personally, my crdit scores aren't a mess anymore, I have a nice place to live, no bills, and making money in a job I actually like. You will, too.

I do not regret any of this, and looking back, knowing how I was walking floors at night about losing the house, I am glad it's gone. I am so much more freer..I can go where I want, and I'm not locked into any 'real estate market up & down's or the ever increasing prop taxes. I have cash, no debt other than rent, cellphone, utilities). Way better off, but couldn not see that back then in 2008.

[dasmom]

Been there, done what you're doing.



Just file for BK and be over with it. I have recovered quite nicely personally, my crdit scores aren't a mess anymore, I have a nice place to live, no bills, and making money in a job I actually like. You will, too.

I do not regret any of this, and looking back, knowing how I was walking floors at night about losing the house, I am glad it's gone. I am so much more freer..I can go where I want, and I'm not locked into any 'real estate market up & down's or the ever increasing prop taxes. I have cash, no debt other than rent, cellphone, utilities). Way better off, but couldn not see that back then in 2008.

Thanks for responding. I've had 15 months mortgage free - a lot of it spent on attorney fees (regretably) and major car repairs. Have saved enough for a new start. Just don't want to risk my child not being able to go to the same school, though I could take my chances and save another couple of months of mortgage payments waiting for the foreclosure to finalize. Could give me a headstart with trying to buy a newer car.

Will talk to my lawyer again tomorrow. Going to see a couple of apartments tomorrow.

Some of the applications here say that bankruptcy disqualifies rental. Little nervous about ending up in a dump or bad neighborhood. That's why I started looking at apartments already.

[deepend]

You've tried very hard and done all you can. It's easy to get into the rut head down trying to make things work way beyond a reasonable point.

If your income is going up and you'll be over the median, I'd file before that complication gets added to the rest of the issues you've been struggling with. I'm very encouraged by BK2008's story - a year later and all the worries that keep you up at night now are gone and you have a fresh new start.

[dasmom]

You've tried very hard and done all you can. It's easy to get into the rut head down trying to make things work way beyond a reasonable point.

If your income is going up and you'll be over the median, I'd file before that complication gets added to the rest of the issues you've been struggling with. I'm very encouraged by BK2008's story - a year later and all the worries that keep you up at night now are gone and you have a fresh new start.

Thanks for validating my experience. Sometimes the response I get is that I should have more faith in things working out. All I have gotten so far from believing that things will work out is stress-related illnesses and extra weight from overeating.

A fresh new start sounds wonderful. Scary, but wonderful.

[dasmom]

When to turn off utilities?

I was approved for a nice apartment in a duplex and can move in as soon as 2/15. This will work for me because I'm on leave from work that week.

Now I have just over 2 weeks to sort and pack 15 years worth of stuff. I will definitely donate a lot of "good stuff" to charity.

I live in the Northeast, so we still sometimes get temperatures below freezing.

Do I call all utlilies - water, natural gas, electric - to discontinue? I don't want to be responsible for damage to the house while it is still in my name.

What about property insurance? If I move out the house will be vacant so I don't think the insurance company will continue the policy.

I don't want to expose myself to anymore financial liability.

Your suggestions are appreciated.

Thanks,

dasmom

[ToughTimes]

dasmom,

Hopefully others will answer you as well, as this is an area where it appears to me we all make different decisions.

Our attorney specifically told us to keep our real estate insured until the title had been transferred. Our insurance agent was able to arrange a suitable policy for this purpose. We have Farmers. If I were you, I'd ask my attorney specifically just how much insurance I need--whether liability only would be enough or do I really need to cover the structure as well.

We winterized our home prior to moving out. DH found good instructions online, and, following those, was able to do that task for the $4 cost of one bottle of the RV coolant. A plumber can also do this, but will charge considerably more: I'm told $100 to $200. It might be worth it, since the plumber would then be responsible if anything did go wrong with the plumbing once winterized.

We also did leave the electricity on so that the sump pump would run if needed. I did turn off the breakers for other electric items we didn't want to leave running (like the water heater & fancy, new-fangled septic). With everything unnecessary turned off, electric runs $15-25 a month.

We did not leave the heat on. DH has a brother who can go over to turn on the heat for inspections and such.

I agree with you regarding near-paranoia over the prospect of incurring additional liability of any sort.

Congratulations on your new rental! I'm inferring it may be in a neighborhood that will allow you to keep your child in the same school. Good deal!

[dasmom]

Tough Times,

Thanks for the response. I will look for the weatherization information on the internet. Yes, the new apartment is in my current neighborhood, so my son will not have to change schools.

Just have to get everything packed and ready to go before my week off from work is over.

It feels good knowing that I can at least control when I leave and where I'm going.

dasmom

[dasmom]

Moving On!!! When do I tell the bank?

Tough Times & Others,

It will cost at least $750 to have a plumber winterize the house. He suggested leaving the heat on at 55 until the Spring. This will be cheaper in the long run. Have to leave electricity on for heat to work, but I will turn off all circuit breakers except to the furnace. Water company will not turn off water - service has to be transferred to another party. Don't understand this because they do turn water off for non-payment.

Anyway, I've packed the basement and garage. Rented a storage unit for 3 months to give me time to do a detailed sort of papers, books, etc. Have Salvation Army and others scheduled to pick up give-away items. Mover is scheduled. Changed address with post office. Have to change address at work and at child's school.

I just have to keep sorting and packing. Will get keys to new place this coming weekend I'm getting pretty excited.

Just got a call from the bankster's collection department asking if I plan to stay in the home and how I plan to pay the overdue balance. I said I was planning to stay (technically true until I officially move).

Will telling the bank after I've moved have any effect on the foreclosure - like speed it up? Will the bank winterize the house or change the locks? What has been your experience?

[ToughTimes]

dasmom,

I'd see to my own needs first and get my BK filed before telling the lender anything at all. Once you've filed your BK, the lender will need to file for a relief of stay before they can continue with the foreclosure, so they won't be doing anything with or to the property until they get that. Having your BK filed first will eliminate any anxiety you may feel at the prospect of having the foreclosure and a possible deficiency judgment hanging over your head.

The plumber has quoted you a way out of line price. I paid mine $109 today to re-winterize our place as the heater's almost empty and I don't care to afford the fuel oil to fill it. If you called a big plumbing outfit, try calling the small ones. They'll be listed in the yellow pages just by the plumber's name, sometimes without even an ad. (This hot tip brought to you by the large plumber I had in Southern California. There are still kind and honest people out there.)

Sounds like you have things well in hand. Feels great to go through everything and get rid of the deadwood, too, doesn't it?!?!

[dasmom]

I spoke to a small owner-run plumbing outfit. At this time, I'll just keep the heat on 55 until April 15th. Then I'll turn it off.

I am not worried about the foreclosure or a deficiency judgment. I'd like to get it over with and move on with my life.

I appreciate your suggestion to file the Chap 7 as soon as I can. I had put it on the backburner while working on organizing my move. I will definitely get as many of my documents to the lawyer as I can by Friday.

I can feel my mood improve as I get rid of the deadwood, as you call it. I really am feeling excited about having a new start!

Thanks,

dasmom