Hello everyone! TIA for reading my post, and esp. for any replies 
We desperately would like your advice. We filed for ch7 and are awaiting our 341 hearing at the end of the month. We have a huge loan amount on our home (including two years of arrears for not making payments while trying to modify our loan). Our home is upside down about 500k (we bought at peak in CA). Right before we filed, we were in process of a last attempt mod for a DOJ mod, which ended up being denied (coincidentally) the day after we filed. A sale date was already set but was postponed to Oct due to the bk filing. We're worried that the bank (BofA) may request a lift of stay. If all goes well, we won't be discharged until Nov.
We would love to keep our home; but if we can't get a principal reduction (to market value), there's no point in keeping it. So, if we need to walk away, we would like to do a "strategic delay" in having to move out. Any suggestions on how to do this?
What options do we have? Or, actually, what option should we pursue?
The guy we were working with at the bank said we can reapply for the DOJ (as we can show proof of more income since we had more income from work just within this past month) after our discharge.
Our question is this - what can we do if the bank requests a lift of stay so that we can delay the sale? Should we try for another DOJ mod? We stopped communicating with the bank after we filed. They said we can talk to them with our attorney's permission. Should we do that? We truly would love to keep our home if only the bank was willing to reduce our principal to market value. They'll get more by doing that then foreclosing or even short saling; so why won't they work with us? We've been fighting the modification battle for two years now!
Our realtor friend says we should do a short sale (although we really don't want to hassle with keeping our home "model ready just so people can trek thru our house). He said it will look better on our credit to have a bk & short sale vs bk & foreclosure. Our atty said don't bother with a short sale; so we haven't entertained the idea until now. And the only reason is to try to stall so we won't have to move until after the holidays.
Or, do we try to do a DIL? And, if so, what would that entail? What would be a benefit to going this route vs short sale or foreclosure?
Or, should we truly get a "new start" by letting the foreclosure go through and be prepared to move out without trying to fight further? We are not reaffirming the house. If we do this (foreclosure) and let's say they sell the house in Oct (before we're discharged in Nov), are we looking at a move out date about 30 days after the sale date? If they don't request a lift of stay, and the house sells through auction after discharge, would it be 30 days from then? Or will it be earlier? What if we have someone renting a room from us? Will they have to allow us the 90 day tenant eviction time (or whatever that's called). What do we need to show them to prove we have someone renting from us?
Sorry for the long post. Hope some of you will chime in with your experience and wisdom ;) Thanks again!
We desperately would like your advice. We filed for ch7 and are awaiting our 341 hearing at the end of the month. We have a huge loan amount on our home (including two years of arrears for not making payments while trying to modify our loan). Our home is upside down about 500k (we bought at peak in CA). Right before we filed, we were in process of a last attempt mod for a DOJ mod, which ended up being denied (coincidentally) the day after we filed. A sale date was already set but was postponed to Oct due to the bk filing. We're worried that the bank (BofA) may request a lift of stay. If all goes well, we won't be discharged until Nov.
We would love to keep our home; but if we can't get a principal reduction (to market value), there's no point in keeping it. So, if we need to walk away, we would like to do a "strategic delay" in having to move out. Any suggestions on how to do this?
What options do we have? Or, actually, what option should we pursue?
The guy we were working with at the bank said we can reapply for the DOJ (as we can show proof of more income since we had more income from work just within this past month) after our discharge.
Our question is this - what can we do if the bank requests a lift of stay so that we can delay the sale? Should we try for another DOJ mod? We stopped communicating with the bank after we filed. They said we can talk to them with our attorney's permission. Should we do that? We truly would love to keep our home if only the bank was willing to reduce our principal to market value. They'll get more by doing that then foreclosing or even short saling; so why won't they work with us? We've been fighting the modification battle for two years now!
Our realtor friend says we should do a short sale (although we really don't want to hassle with keeping our home "model ready just so people can trek thru our house). He said it will look better on our credit to have a bk & short sale vs bk & foreclosure. Our atty said don't bother with a short sale; so we haven't entertained the idea until now. And the only reason is to try to stall so we won't have to move until after the holidays.
Or, do we try to do a DIL? And, if so, what would that entail? What would be a benefit to going this route vs short sale or foreclosure?
Or, should we truly get a "new start" by letting the foreclosure go through and be prepared to move out without trying to fight further? We are not reaffirming the house. If we do this (foreclosure) and let's say they sell the house in Oct (before we're discharged in Nov), are we looking at a move out date about 30 days after the sale date? If they don't request a lift of stay, and the house sells through auction after discharge, would it be 30 days from then? Or will it be earlier? What if we have someone renting a room from us? Will they have to allow us the 90 day tenant eviction time (or whatever that's called). What do we need to show them to prove we have someone renting from us?
Sorry for the long post. Hope some of you will chime in with your experience and wisdom ;) Thanks again!
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