Walk away?

[DEBTCHAINS]

Hi all,

this forum was such a help to me last year as we went through our Ch 7. Now, it seems we need to make a decision.

We're two month behind on our house payment, I had no idea it was happening. (wife handles finances, thought she could catch up, wasn't being straight up with me on our money situation.... another post altogether!)

We didn't reaffirm the house during BK, but stayed. Well, with property values the way they are, I think ours is worth maybe 510k. (we're in CA)
We owe 535k on the first, 60k on the second.

My thought is to at LEAST stop paying the second. We're current on that, and why would it benefit them to try to foreclose? (it's B of A by the way) Regardless, we're absolved from it anyway, with the BK. BUT.... there's another part of me that says we just stop paying on both period, and see how long we can put away money. We just can't decide if we want to stay or not. Well, we do, but I don't know if it's smart to do so. I don't ever see us making our money back, not for at least 10 years, and I'm not sure I want to be there that long. The only thing that keeps us there is the tax write off and the comfort. Because of the housing situation, rent has gone up so much, it's not a huge difference to rent anymore. I mean, our first is $3400 a month, and rent for something with even a couple bedrooms in a nice area is $2500. That sounds like a lot, but it's not after you lose the tax write off. I know I'm probably missing other things here, and rambling, but I just want to start hearing some thoughts out there, or if anyone here has gone through something similar.

Thanks for the ear.

[Freddy03]

Well I haven't filed yet but have recently just decided to stop paying my mortgage. Our house is underwater by 109K and I can find nicer rental homes for about $800 a month cheaper. I'm going to ride out the FC process as long as I possibly can and save until we are "thrown" out.

I'm extremely nervous about the whole situation. I am a needs to know type of person and with out a set date of when my FC will take place it's making me feel a little uneasy. I am filing Ch 7 on 7/1 so well see how it goes.

Good Luck to you!

[IamOld]

debtchains - re first I understand WELL re situation with wife...

Re house - have they made noises about "pay or else?" Because to me the question is this - are you - per month - paying significantly more than rent? If not...would it make sense to rent??

[DEBTCHAINS]

debtchains - re first I understand WELL re situation with wife...

Re house - have they made noises about "pay or else?" Because to me the question is this - are you - per month - paying significantly more than rent? If not...would it make sense to rent??

I just found out we're behind two months on the first, I thought we were all good.
Actually had someone come to the house when I was home alone, and ask if occupied. I found that odd, lol, and he gave me an envelope with a small note in it to call Chase. That's how I found out. UGH. No "pay or else" from them at all, not yet.
The second, we're current on. I'm thinking at the very LEAST we stop paying that. Most likely, they won't foreclose, and we can stay and save $400 a month.

We pay probably 1000 or $1500 more give or take, on the mortgage than we would to rent. (and this includes property taxes, so no extra savings there) Again, I map out what we save in tax write offs, maybe 10k a year? and I don't see a huge difference between the two. Not with rent being so high. I realize landlords are taking advantage of the current situation out there, and I can't blame them at all!

[IamOld]

Hello! From what I gather from other posters, Chase may think you've got up and left! Are you 2 months behind in that they haven't received $$ in two months, or is it paid each month just 60 days behind?

I guess I would say rather be behind with 2nd than first if you can skip second to bring first current...do you think Chase would let you do soemthing like roll the two missing payments into the loan??

I think you're right about rent - it's pretty much the same where I am...

[DEBTCHAINS]

Two months behind total, like she missed a payment end of last year, and another recently. We did send a payment in recently, so we're 60 days behind.
We're going to call Chase and see what our options are. Hoping they'll let us roll it, or pay say $500 a month on top to get caught up. Who knows, Chase is sooo awful to work with. I'm thinking we stop on the second though, and hope we can eventually settle that loan. Yup, rent is just way in the hell high right now. When we first thought about walking, it seemed pretty cut and dry, but not any more.

Hello! From what I gather from other posters, Chase may think you've got up and left! Are you 2 months behind in that they haven't received $$ in two months, or is it paid each month just 60 days behind?

I guess I would say rather be behind with 2nd than first if you can skip second to bring first current...do you think Chase would let you do soemthing like roll the two missing payments into the loan??

I think you're right about rent - it's pretty much the same where I am...

[IamOld]

debtchains, best wishes first and foremost! Let us know how this turns out!

I'm thinking if the house is upside down, Chase won't want the house...sometimes a letter to the CEO - yes Jamie Diamon himself in NYC can shake a buracuracy lose - I'd put in about wife doing this, and you want to do the right thing, etc. besides you are paying and they are taking your payments...give their phone people a shot at first...

[DEBTCHAINS]

Thanks for the kind words. Will let you know what we decide.
Been there done that with Jamie. Our loan mod was a complete nightmare, and Chase took almost a year to even have it on the books after we signed documents. HORRIBLE company. Will try with the phone people first I guess, (average IQ of a field mouse) and then go from there. B of A, we'll just stop paying, but knowing there's a small chance they foreclose anyway. That's the scary part, but I just don't see them doing this. If anything, I'd think we could offer them 10% and get it off the home entirely.

debtchains, best wishes first and foremost! Let us know how this turns out!

I'm thinking if the house is upside down, Chase won't want the house...sometimes a letter to the CEO - yes Jamie Diamon himself in NYC can shake a buracuracy lose - I'd put in about wife doing this, and you want to do the right thing, etc. besides you are paying and they are taking your payments...give their phone people a shot at first...

[IamOld]

LOL - you you've written to His Most Exalted Majesty, the King of the Banksters, the Duke of Manhattan, the Crown Prince of Dollars - HRH Jamie the first?

My thing was when we and we actually got a deal for cc with them but HSBC put a monkeywrench in that buy suing - anyway, the stateside phone people were reasonable, but their SUPERIORS are in INdia...

This is MY opinion entirely, but how would B of A foreclose - they'd have to pay off Jamie first right?!

[DEBTCHAINS]

Yup, that's correct. They'd have to pay off Chase. I called a well respected realtor in our area who's running comps for me now. Can't take zillow's word for anything.

LOL - you you've written to His Most Exalted Majesty, the King of the Banksters, the Duke of Manhattan, the Crown Prince of Dollars - HRH Jamie the first?

My thing was when we and we actually got a deal for cc with them but HSBC put a monkeywrench in that buy suing - anyway, the stateside phone people were reasonable, but their SUPERIORS are in INdia...

This is MY opinion entirely, but how would B of A foreclose - they'd have to pay off Jamie first right?!

[IamOld]

Then I'd dare say B of A is...stuck....

Again, best wishes to you...(feel free to PM if you'd like to went re spouse situation... :-)

[DEBTCHAINS]

Just received comps in our area, our house is worth about 500k. Owe 535k on the first. Sorry B of A, you're not getting another dime on the second any longer! Will let everyone know how this goes, but I'm hoping they settle with us down road. Makes zero sense for us to pay on that 60k second, when we're upside down on the first.

[IamOld]

Just received comps in our area, our house is worth about 500k. Owe 535k on the first. Sorry B of A, you're not getting another dime on the second any longer! Will let everyone know how this goes, but I'm hoping they settle with us down road. Makes zero sense for us to pay on that 60k second, when we're upside down on the first.

I doubt if B of A is going to pay off Chase! :-)