Well, we went through the whole BK process as shown in my sig. We have now decided to let our house go. The house is under by about $100k (with 1st+2nd mortgages). We stopped paying the 2nd back in Jan 2010 and have only received a default letter from them in March. Haven't heard anything else from them. Zillow claims home is around $270k. We owe about $250k still on the 1st.... so I doubt the 2nd would do anything anytime soon.
However, we are in desperate need of a 2nd vehicle so both of us can work. Since we're willing to let this place go, we will use the money to save and buy a used car outright. After that, save funds for the next place we plan to live/rent.
Stopping payment on the 1st will definitely trigger the 1st mortgage (CitiMortgage) to start the foreclosure process at some point. I'm wondering what the current realistic time frames are for people these days. I hear they can legally start the foreclosure process right after the 1st missed/late payment. However, others have said after at least 90 days late. Some people said they've been able to stay in their homes "rent free" for a year!
It's so bizarre being in this situation but it's probably the best thing for us to do. We'd never be able to stay long enough to make it worthwhile to live here. Other option would be to settle with the 2nd. But even then, it still doesn't sound like the best path.
Of course, we did NOT officially reaffirm. We indicated to "retain and pay", but never signed reaffirmation papers with the mortgage companies.
However, we are in desperate need of a 2nd vehicle so both of us can work. Since we're willing to let this place go, we will use the money to save and buy a used car outright. After that, save funds for the next place we plan to live/rent.
Stopping payment on the 1st will definitely trigger the 1st mortgage (CitiMortgage) to start the foreclosure process at some point. I'm wondering what the current realistic time frames are for people these days. I hear they can legally start the foreclosure process right after the 1st missed/late payment. However, others have said after at least 90 days late. Some people said they've been able to stay in their homes "rent free" for a year!
It's so bizarre being in this situation but it's probably the best thing for us to do. We'd never be able to stay long enough to make it worthwhile to live here. Other option would be to settle with the 2nd. But even then, it still doesn't sound like the best path.
Of course, we did NOT officially reaffirm. We indicated to "retain and pay", but never signed reaffirmation papers with the mortgage companies.
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