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Finally letting house go in Arizona

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    Finally letting house go in Arizona

    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.
    Retained Lawyer: 04/2009 Filed: 09/2009 341 Meeting: 10/2009 Discharged: 12/2009 Asset: 05/2010 made asset Closed: 07/2013 after 47 long months

    #2
    Good luck. I cannot offer you advice on a timeline but I can tell you what we are experiencing.

    Filed bk 12/08 (also first month of missed payment), discharged in 4/09. NO activity AT ALL except finally a relief from stay in 2/10. We are an asset case still not closed.

    We have been rent free for a very long time, and SO very thankful as my husband lost his job due to the economy (construction). We are waiting it out . . .

    You have time. Good luck!

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      #3
      Well, duh... my parents want us to keep the house. They said the best case would be the 2nd settling at some point. However, this is not guaranteed. We stopped paying the 2nd back in Jan 2010, though. I guess we are running the risk of the 2nd foreclosing. I'd hate to keep paying the 1st and then the 2nd actually proceed with a foreclosure... then we would have been wasting our money this whole time paying the 1st where we could have stopped paying the 1st for months (walking away).

      Well, to help us out, our parents are buying us a 2nd cheapy car so we can commute to work.

      From what I understand, the 2nd cannot contact us. So, I'm hoping they just "sit" on the lien. I'm still hoping Zillow is "smoking something" thinking our home is worth $270 (loans: 1st: $250, 2nd: $110) when it would actually sell for less than or near the 1st realistically. I guess maybe towards the end of the year, we'll give the 2nd a call and say "Hi! We want to settle!"? I don't know when the best time would be to do that.
      Retained Lawyer: 04/2009 Filed: 09/2009 341 Meeting: 10/2009 Discharged: 12/2009 Asset: 05/2010 made asset Closed: 07/2013 after 47 long months

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        #4
        My husband and I were desparately trying to hold on to our house as well. I just checked my checking account balance and it's getting scary. Hubby has been out of work for several months now and funds are getting tight. We stopped paying the mortgage in March and now in some ways I wished we would have stopped sooner. Once I realized we just couldn't do this anymore I kept paying hoping something would happen to make things better but it didn't happen. Now I wish we had that $5,000+ we threw at a house we are going to walk away from. That's money we could have had in the bank, I'm especially worried if there is no extension on his unemployment.

        I guess I don't have any advice other than if you really feel you are not going to be able to keep your home, stop throwing your money away and start saving for your new place. That is what we are going to do - save as much as we can.
        Filed: 8-19-09
        341: 9-21-09
        Notice of Discharge: 11-28-09

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          #5
          We let ours go in our BK filing. 1/2010 was our last month of payments and our BK finished up at the beginning of this month.

          Don't trust Zillo numbers. Zillow says our house is worth 280K. A foreclosed house in our neighborhood that was more updated, and a bit larger than ours is currently listed for 230K. I think their numbers haven't quite adjusted for the changes in the economy.

          We're riding ours out as well. In our state we get a 6mo redemption period AFTER the sale, so we're hoping to make it a while yet since our lenders didn't request a relief from stay during our BK, and even once the process starts here in our state there is usually 2 to three months before the sale as well.

          Good Luck.

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