This is my 1st post here and I'm hoping for some direction. I live in Florida and my home is upside down about 40k and there are numerous repairs necessary. I'm about 6 months into non payment on my mortgage and Ive just been notified that I have 30 days to pay up or the process begins. I have 2 mortgage's 1st for 135k, 2ND is a HELOC at 34k. Both are with GMAC. My dilemma is, do I let the house go into foreclosure and hope I don't get a deficiency judgment? File for bankruptcy? I do not want the home and I really don't feel like waiting around for a short sale. I would consider a deed in lieu, but GMAC said that they might not be able to do that cause of the HELOC. Ive tried the loan mod, which worked for me on the 1st loan, but GMAC gave me the run around with the HELOC, so I gave up. Bankruptcy scares the hell out of me cause I have a live in GF that I don't want to bring into this at all. Her name is not on any of the loans nor the utilities, but reading up on the means test, I would have to include her household contributions, which I do not want to do. I spoke with an attorney last week and he gave me the facts about bankruptcy, most of which I all ready knew, but I want to save that card for a rainy day. If I can walk Id much rather do that, but I do not want to wake up 2 years later with a notice of a deficiency judgment. BTW I have a steady job, but 16k in CC debt I carry as well. What are some thoughts or comments? Thanks
-
-
You owe $135k first, $34k 2nd, and are upside down a total of $40k. Is this a correct summary? If so, there is no equity in your 2nd and a ch. 13 may be what you need. Could strip the 2nd (make it unsecured) and resolve the arrears on the 1st over 36-60 months depending on whether you are above or below the median income.
But that would be the ideal way to keep the home. If you want to give it up, then whether 7 or 13 would depend on income, expenses, etc.
And regarding the live in girlfriend, only the part of her income that goes to household expenses is pertinent. Not her full financial details. So if she contributes $1000 to mortgage, utilities, etc. that is what you consider.Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.) -
What to do
To add to my orginal post. Would the "show me the note" angle slow the foreclosure? I read that I could for a bit longer, but Im looking for some people who have took that approach, and there experiance. My other concern is the deficiency judgment. How long do they have in the state of Florida to file that, and how likely are they to persue it?Comment
-
The "show me the note" is usually just a way to slow down and already filed Bk. This method can also be used effectively in a Ch 13 case. However, if most cases it is a time management tool not a complete debt discharge solution. There are exceptions but they are rare, IMO.Originally posted by VstevoV View Post
Who was the originator of your mtgs; DiTech? The show the note cases that seem to be most successful are those that were originated by certain lenders of which many have gone bye-bye, and the paper for the note and mtg has been sold and transferred a couple of times. These also usually involve MERS as a common element too.
Since you do not want the house I would look strongly at Ch 7 if you qualify by being able to pass the means test. Involving the gf isn't going to be much of an issue really other than some numbers on a page to determine whether you qualify for a discharge of debt, aka Ch 7.
FL provides one yr from date of foreclosure sale for lender to obtain a def judgment against you. The advantage of negotiating a short sale is that you may be able to forego any def judg. Not guaranteed but you can make that a stipulation to the short sale, full release and satisfaction of the note(s). Might be worth a shot in your case.Comment
-
What to do
The original note holder was Homecomings, which was a parent company of GMAC. When the economy started to falter, the loan was taken over by GMAC. Not sure if that constitutes wasting my time with making them produce the note just to stall the inevitable foreclosure. As far as a BK, I want to hold that card till I absolutely need to, for instance, if I get sued for a deficiency, or I inherit money. What are some thoughts to a deed in lieu? My gut tells me to just walk away, but logic is standing in the way. Any thoughts?Comment
-
Homecomings was one screwed up outfit so one never knows if docs could have been lost. The problem is there is a legal remedy for actual lost docs and it doesn't automatically mean trouble for a lender. Where the trouble has come in is when the lender has glossed over the fact that they are lost or worse, pretended that they aren't lost, and proceeded ahead with a fc, is where the problems have come in for them. The show me the note situation has caused lenders to do the homework that they should have in the beginning, so in most cases this strategy will fail. (success rate 1/10,000, IMO).Originally posted by VstevoV View Post
Deed in lieu takes a willing player in the lender. Many won't play ball due to inherent legal issues in accepting a dil. Don't blame them at all. Short sale is way more do-able, not a certainty but much greater chance of success than a dil.
You mentioned inheritance. If that is a real possibility then you can't wait until this is imminent and then file Bk. One of the sources a TT will explore in questioning is "any inheritance in the future?" So if this is likely then that would be all the more reason to get the def judg addressed NOW. I know the short sale isn't appealing to you for some reason but it is your best bet for resolving the issue, IMO.
If you walk away this situation will not be resolved for 2 yrs, maybe more. 1 yr+ to do the foreclosure, then 1 yr sol for filing of a def judg. You'll just have to weigh the option of time against the other options. You can try dil and short sale at the same time. This still doesn't preclude the walk away, but I guess those efforts further delay start of the 2+ yrs wait after a walk-away happens unless the lender started the fc process while trying the other avenues. No simple or straight forward answers, unfortunately.Comment
-
Hey---Mensa1---sol?Comment
-
sol = statute of limitiations, or time limit.Comment
-
What to do
Statue of Limitations on a deficiency judgment is another question. Ive heard many different answers regarding this subject. Ive heard, in the state of Florida, that banks can still file for up to 20 years. Ive also heard 4 years, and 7 years. Can someone give me an accurate answer? Even my BK lawyer mentioned 20 years, but I got the impression that he wasn't totally sure. Too add to my problem, I didn't complete the mod cause I had questions that GMAC never answered, so it was canceled with out my knowledge. So for 3 months I continued to pay the mod payments and no one ever said anything about it till I got a delinquency letter in the mail stating that I was 4 months behind. So when I spoke to someone over the phone, the buffoons on the other end could not tell me where my money was cause it was not going towards my loan, adding to my frustrations. I suppose now its going to come to my sending a written letter via certified mail to get a competent person to look into this and help me out. Any thoughts or advise?Comment
-
I have now read the time limit in FL for lender filing for def judgment to be 1yr, 4 yrs and 5 yrs. I cannot find an actual reference in the statute to corroberate any of the above. However, the most common reference I have seen is 5 yrs. via multiple sources; (maybe multiple bad sources, who knows).
I know the 20 yr reference is wrong. That refers to how long a lender would have to file suit to foreclose/collect upon the written contract. Def judg is NOT 20 yrs.
So maybe someone in FL who knows the time limit for def judg following completion of foreclosure, could clear this up for us.Comment
Comment