Originally posted by DebtStinks
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Originally posted by jlmaca View PostWhat is best really depends on your situation and what you are hoping to accomplish. What are your immediate goals specific to a foreclosure and BK? Do you want the home?
Get a fresh start through BK. I never contemplated foreclosure until a few days/weeks ago. We are current on the loans.
We lived in this home about 10 years, did a lot of improvs and at one point had almost $400k in equity in it at the end of 2006... sadly that equity vaporized in thin air. Clearly is difficult to let go.
Short term. I can see no chance for real estate appreciation, so I am aware that I am basically throwing away money by paying the mortgages.... staying in the house one year for free and walk away would allow us to build a nice little cushion of savings.
However, if I could reduce my payments by 25%-30% or maybe combine the 1st and 2nd through a MOD (the loans are both ultimately owned by BofA although through different subsidiaries).... I can see it worth it to stay and hope that 5-10 years down the road I can get back a nice chunk of money by selling.
Both scenarios would require me to stop paying... but which is the best way to go in order to work out a loan MOD? Stop paying pre BK or post discharge?
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GWBcasualty I guess I can only relate to what I am going through. I could not advise either way. I found it foolish to keep paying. I went back and forth for months on whether to keep the home or not. I'm 100k underwater so there is no hope of redemption here. You don't seem to be as underwater but I guess that's relative to your situation/income/ etc. If your main goal is to stay in house as long as possible and save money I'd go for it. Check your state laws or ask your attorney for the details of foreclosure timing, redemption period etc. All state are different. My bank, Wells Fargo is not very active on my foreclosure. My Chap 7 was discharged in Dec 09. I did not reafirm and have only received a request to modify the mortgage from the servicer. I have no notice of deficiency or any sign of a foreclosure summons. When that happens I have a plan in place to delay, delay until October 2010. I considered the mod request for 10 minutes but since I'm so far underwater I came to my senses quickly.
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Zwillow is WAY over valuing homes in most areas of CA. You might check for some comp sales in your area to get a better idea of what the value is.
We stopped paying Feb. 09 did our BK7 in June and discharged in Sept. We still have not received our NOD from BofA and they haven't said a word to us. Once you get the NOD in CA you have 3 months to cure the loan or they will set the sale date which is like another 3 - 4 weeks (at best). So you'll have like 4 months min. before you'll need to be out of the house on a foreclosure in CA.
It really comes down to your specific situation. Do you have a ton of unsecured debt eating away at ya? Income issues due to job loss or a decrease in salary? Have you pretty much decided to that Chapter 7 is the way to go and are just looking at timing it correctly? Also some leaders won't even deal with a mod post bankruptcy if the home was discharged.
Hard to advise without knowing the whole picture. But if I didn't have much unsecured debt and wanted to keep the house I would be talking a close look at the homes value. If it really is only worth 375k then I'd consider doing a chapter 13 and strip off that second mortgage.
But if a clean start is the goal and renting for a couple years is ok then I'd screw the house, stop paying on everything, and plan to file your chapter 7. Timing on that is also key. You have a large mortgage and socking away $3,000 a month into savings instead of paying will quickly get you into a situation where you won't be able to exempt your savings in bankruptcy.
Now I'm rambling... its hard to advise without being in your shoes.Filed Chapter 7: 06/09/09
341 Meeting: 07/16/09
Discharged: 09/21/09
Case Closed: 09/25/09
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we were going to try and ride through, once the bank got wind of our intentions of not reaffirming they pushed the hand. This all happened Friday afternoon My lawyer advised us they turned it over to foreclosure my payments are due the 1st of the month and am current but not paying today. We were going to try it but DW is all about staying rent free now and sticking it to them. I don't know I will decide this week. i just cant bring my self to reaffirm this house in Michigan. I now feel that since the are foreclosing and I am current why pay anymore...Filed CH 7 12/1/2009
341 Meeting 01/20/2010
Discharged 3/22/2010
Closed 3/29/2010
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Originally posted by DebtStinks View PostAlso some leaders won't even deal with a mod post bankruptcy if the home was discharged.
Originally posted by DebtStinks View PostBut if a clean start is the goal and renting for a couple years is ok then I'd screw the house, stop paying on everything, and plan to file your chapter 7. Timing on that is also key. You have a large mortgage and socking away $3,000 a month into savings instead of paying will quickly get you into a situation where you won't be able to exempt your savings in bankruptcy.
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Originally posted by GWBcasualty View PostThey would if they reworked it as a new loan replacing the discharged one.
I know.... that's why maybe the best is to stop paying right before filing. So no money piles up in the exemption column, but enough time will be left to get significant savings. Without knowing for sure what home prices will do in the future, the best realistic choice would be to let it go.... it's just tough to admit to yourself that you wasted 10 years....Filed CH 7 12/1/2009
341 Meeting 01/20/2010
Discharged 3/22/2010
Closed 3/29/2010
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Originally posted by GWBcasualty View PostHow can they foreclose if you are current?Filed CH 7 12/1/2009
341 Meeting 01/20/2010
Discharged 3/22/2010
Closed 3/29/2010
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Originally posted by GWBcasualty View PostThey would if they reworked it as a new loan replacing the discharged one.
Banks never have been nor will they ever be your friend. They are out to make a profit and keep shareholders happy, just like any other business. When they took your loan they assessed the risk and set your down payment and interest rate according to their assumed risk. The homeowner on the other hand is often dumping their entire life savings into this investment. They put their blood, sweat, and tears into maintaining and keeping their home. When a home forecloses there are no winners… the bank looses as well as the homeowner. But for the homeowner this was their single most important investment of their life… not just home #4673 on block 264 as the bank sees it. But just like a business the homeowner has to look at this home they are invested in and decide what is best for your family. What will it take to make things right so you can provide for your family’s future? And really what’s more important than making the right decisions to ensure that you can provide for your family’s future?
Without knowing for sure what home prices will do in the future, the best realistic choice would be to let it go.... it's just tough to admit to yourself that you wasted 10 years....
Everyone’s situation is different and all you are able to do is the play the hand you were dealt the best you can. For my family it was swallow our pride and pretty much start over from scratch by filing for a chapter 7 and walking away from our house. In hindsight it was absolutely the best decision we could have made. We are actually looking forward to our future instead of dreading having to even get out of bed for another hopeless day. We have learned a lot from this experience and are grateful for this second chance.Filed Chapter 7: 06/09/09
341 Meeting: 07/16/09
Discharged: 09/21/09
Case Closed: 09/25/09
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14 months of non-payment, and they still have not foreclosed on my home. I am not living there, but still. They were throwing me out of my home after 4 months of non-payment in 2008, and now they are doing nothing. 14 months have gone by since I last sent them any money, and 7 months since my Chapter 7.
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Originally posted by moneytrouble View Post14 months of non-payment, and they still have not foreclosed on my home. I am not living there, but still. They were throwing me out of my home after 4 months of non-payment in 2008, and now they are doing nothing. 14 months have gone by since I last sent them any money, and 7 months since my Chapter 7.
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Not really, the condo is still in my name hanging over my head, and I read on here I may supposedly need to pay some of the condo dues accrued after chapter 7, as the banks supposedly only pay a certain portion. The longer the bank waits, the more I might have to pay. Also, home lenders use some lending service like a credit report, but it is only for home lending, that lists when your foreclosure sale date was, and use that as part of the approval process. My foreclosure sale date at this point will most likely be a year or longer after my bankruptcy. So my fresh new start has not begun yet.Last edited by moneytrouble; 02-03-2010, 08:23 PM.
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We are in the same boat moneytrouble... I know we could qualify at 2 years out from BK easy on an FHA. But god knows when BofA will forclose on our house... could be another year or more. Then it's 3 years from then.Filed Chapter 7: 06/09/09
341 Meeting: 07/16/09
Discharged: 09/21/09
Case Closed: 09/25/09
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