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    So many questions

    My husband had a significant loss of income over a year ago (48%) due to the housing market. He works in construction inspection. He used to be quite busy with the housing boom. He was also making a crap-ton of overtime, so we were sittin' pretty and able to afford all of our expenses. Don't ask me how we got into so much debt during this high rolling time. Sigh. Of course the market slowed to a crawl, and then to almost a stop. The paychecks got smaller and smaller and pretty soon we were making decisions like... pay the car or buy groceries. Never a good place to be. So we are in the middle of filing chapter 7 and also surrendering the home. I'm heartsick as I am in love with my home. We put so much work into it and we are finally in the area we have always wanted to live in. My parents live just down the street and we have enjoyed everything about living here. We just don't see any other way. Tried a home mod but they were only going to lower our payment $200... which was not nearly enough to help.
    So we have no idea when to start looking for a place to rent. We have gotten a lot of mixed advice. We stopped paying our mortgage Jan, paid a partial payment in Feb, paid one trial payment (what a joke) of our loan mod in April and got our NOD in May and just about 2 weeks ago got a Notice of Trustee Sale taped to our door. Fun. Our bankruptcy is being filed this week and our lawyer says this will stop the trustee sale for 2 months or so. The lawyer tells us that once the bank resumes the foreclosure after the bankruptcy is discharged and the house is sold at auction, we need to be out. Other people are telling us to stay as long as possible to save money. We have no idea what to do! We do not want to be kicked out on the street with 3 kids and no plan or anywhere to go. There are hundreds of rental homes we can afford... but I don't know if we will be able to rent any of them with our BAD credit situation. I'm all in a panic. Anyone have any pearls of wisdom?
    Btw, we are in CA. I keep hearing that the foreclosure process is very slow here, and there are hundreds and hundreds of empty bank owned homes here, but it seems like they are getting ours over and done with in a hurry! We haven't had enough time to even save yet! Help!

    #2
    Your story is common. There are plenty of places to rent as you noted, there are a glut of empty houses. Many folks in distress are willing to rent. Also many speculators who own houses may sell you one cheap on contract for Deed (like rent to own).

    Credit scores are becoming obsolete as it seems our government is steering us towards becoming a third World country, and second great depression.

    It is true you can wait out the bank and make them sue for eviction and you could hold off this action for as long as six months, especially with children. But I understand your desire to get settled in. How big is your parents home and could you move in and use your resources to improve their place? Add a room, give them your newer appliances (if they are not attached to the house mortgage). This may benefit both of you and your parents. That is, if they go for the extra traffic. Many people are doing that these days. Used to be the old folks come home to the children in their old age. Now days the children go home to the parents. Odd, but true. 'Hub
    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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      #3
      IMO, it would be a mistake to let an eviction take place.

      It is one of the few marks on credit report thats tough to explain away. As a former landlord I can tell you almost anything else (assuming no felony convictions) was doable. But eviction is the biggest Red Flag.

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        #4
        Originally posted by ryan View Post
        IMO, it would be a mistake to let an eviction take place.

        It is one of the few marks on credit report thats tough to explain away. As a former landlord I can tell you almost anything else (assuming no felony convictions) was doable. But eviction is the biggest Red Flag.

        Ryan - if we stay until the auction is done and then leave immediately after the sale, we won't have an eviction on our credit, correct? We have an investor who is going to try to buy the house at the auction and rent it back to us. I don't want to move out to have to move back in. If he doesn't get the sale, then we're prepared to leave. I'm already purging and getting rid of stuff so we can get out quickly. We have another house we can move into immediately if the investor doesn't win the auction - so moving quickly is not an issue. Just want to wait until the last possible minute. But it is my understanding that we can stay right up until the sale is final - just making sure.
        04/01/10 - Hit rock bottom and knew we were going to have to file for bankruptcy and surrender our home. 12/14/10 - Filed Chapter 7, 02/09/11 - 341 Hearing, 04/14/11 -

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          #5
          Thanks for the advice! We went to look at a rental home today about 5 minutes from our current home. Nice neighborhood, much smaller home, but kept up nicely and plenty of room for what we need. The landlord was completely understanding about the situation. The bankruptcy and foreclosure was not as issue for her in the least. She is looking for a tenant in September... which timing-wise would be great for us. Gives us 2 months to save some $$ and we could get the kids settled into their new school. Mind you, I would LOVE a good 6 months of rent-free living here, but I just feel so stressed out and unsettled. I would be beside myself if we were evicted!!! What do you guys think? Go for the rental? Shop around more? Wait and see?? Ack!

          Comment


            #6
            Originally posted by ssmdem View Post
            Ryan - if we stay until the auction is done and then leave immediately after the sale, we won't have an eviction on our credit, correct?
            Of course its probably state-specific, but in my area the new owner would have to go to court to seek an eviction. By following your court docket you should know if they are seeking an eviction. In my area there is up to a 30 day period after the sale before it must be vacated.

            I imagine to avoid costs, they would first 'notice' you to leave which would be shortly after the sale. ...which wouldn't be an eviction.

            Comment


              #7
              Originally posted by kourtini View Post
              ...I would be beside myself if we were evicted!!! What do you guys think? Go for the rental? Shop around more? Wait and see?? Ack!
              Sounds like you are confusing foreclosure with eviction. That is understandable but they are not the same thing. Foreclosure is simply the legal process in which the bank reclaims ownership of your home due to your non-payment of mortgage. Eviction is an entirely different legal process in which the bank removes you from the property AFTER they have reclaimed it. You can not be evicted without a court order.

              I agree with Ryan, you do not want to let it go that far if you have a choice. If you are looking to save some money though you should definitely stay until the foreclosure is complete.

              I do not know what the specific laws are in California, but you probably have the legal right to inhabit your home for a certain period of time after the foreclosure is complete before the new owner can legally evict you. Staying up until the last possible moment prior to an eviction proceeding being filed is perfectly legitimate and will not further harm your credit or your ability to rent. In your case It sounds like it might be the prudent thing to do

              Comment


                #8
                I just reread your original post and perhaps you were not confused on that point after all. As for finding a new place to live, I think it will be a lot easier then you think. If you have first, last and deposit most landlords are going to rent to you. Especially in this economy.

                If I were in your shoes, (and I am), I would start looking for a place about 30 days prior to the trustee sale. That should give you plenty of time to find something you like from a landlord that will look past your credit sins. At 30 days out, you should be able to negotiate the start of your lease to your foreclosure date and take advantage of your free living situation until the last possible moment.

                If staying in your home for the longest possible time is your priority, you should consider delaying your bankruptcy filling until roughly a week before the trustee sale. Your attorney is mistaken. A bankruptcy filing doesn't typically stop the clock on the timeline between the Notice of Sale and the actual sale. In California I think there has to be 90 days between the Notice of sale and the foreclosure. If you file bankruptcy right after getting the notice of sale you will likely be discharged before the sale is scheduled. The sale will then proceed as normal. However, if you wait until just before the sale is to take place, the sale must legally be postponed until you are discharged or the bank gets a relief from stay. So by waiting you can extend your stay in your home from 3 months to 5 or 6. Something to consider.

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