When should I stop paying?

[Wantmypeace]

I have a 1st w/Wells Fargo for 145K, a 2nd w/GMAC for 175K, and a 3rd w/GreenTree for 45K. My house is currently worth 185K (California, Zillow estimate as of yesterday).

So, I'm trying to decide when to stop paying. We will be filing Ch. 7 around June (have to wait for 6 mos after I lose my job to get income low enough to pass means test). We will not be keeping anything that we have a loan on, and our only assets are our home furnishings, our clothes, and one car worth 3K. We'd like to walk away and start fresh by renting and paying cash for everything from now on.

I'm current on everything right now. If I stop paying the mortgages, I will have an extra 3K/mo to save up for the lawyer, replacement car for the one that will be given back in bk, 1st/last/security on a rental, etc.

QUESTION: When is the soonest I can stop paying the mortgages if I DON'T want to be kicked out of our house before June?

[tiffanydawnn]

I stopped paying last October. They just filed foreclosure (BofA) on 9/28/10. That should take another 3-6 months at least. I'm in Delaware so your state may be different.

Good luck with everything!

[bkw1nter]

I would get a consult with a Lawyer but you should be able to stop paying now, I don't see anyway they would be able to foreclose on you within 6 months.... I stopped paying August 2008.... and still no sale date and I am in a very high moving real estate location.

[Wantmypeace]

What about the credit cards if I'm not going to file until June 2011. Could I stop those now, too, or am I likely to get judgements by then?

[bkw1nter]

What about the credit cards if I'm not going to file until June 2011. Could I stop those now, too, or am I likely to get judgements by then?

We stopped paying Credit Cards November/December of 2007 Creditors Capital One and such started reporting us 30 days late in February then we filed in June.... we never received any judgments from any Credit Card companies so you would probably be safe although I think it might be a bigger ding on your credit. Good Luck!

[Wantmypeace]

Well, my credit is already in the toilet. So, no worries there! I have been in a credit counseling program for the last year and a half, and everything is current with everyone except Capital One. They wouldn't accept the program, so I've missed a payment here or there to them. I just know that they have me in collections, but I don't know exactly how far in it is. I'm guessing they would be the first ones to strike. They're terrible all the way around!