Ch 7 or 13

[Jf24]

If I qualify for a 7 it will be close. I also found out my first mortgage is under water by 15,000. I can strip second in a 13.

Looking for opinions. Would you do a 7 if you qualify to get It over with (60,000 in credit cards) but pay 15 more years on the 2nd mortgage or pay a 13 for 5 years and be done with the 2nd as well?*

[NoMoreCards]

Honestly, i would have trouble paying for a underwater house at all. The best business decision might be walking and moving on. Just my thoughts. Whatever you decide, i wish you the best. Just think long and hard before you throw your fresh start cash into a undereater asset.

[shark66]

What I'm about to say holds water *only* if your first mortgage holder is different from the second mortgage holder...

Do a Ch. 7 - do NOT re-affirm either mortgage - stay and pay the first one if you feel that it makes more sense than renting a similar place. After a year, offer 5% to settle the second.

My $0.02 only...

Good luck to us all.

[Jf24]

Both are from the same mortgage company. Navy Federal. Moving will not make sense. Rents are almost as high as mortgage payments in this area.

[shark66]

Both are from the same mortgage company. Navy Federal. Moving will not make sense. Rents are almost as high as mortgage payments in this area.

Well, that set of circumstances limits your options and then some...

If you *really* want to stay in the house long term, I'd say do a 13 and strip the second mortgage...

What is the house worth to begin with? How much do you owe on first, and on second?

Good luck to us all.

[Jf24]

Got appraised for 225,000, owe 239,000 at 3.5% (got modified) on first and 55,000 on second at 8%

[shark66]

$15K underwater on a $240K house is really not that bad - not in my book anyway.

Go for 13 and strip the second, once again, only if you're certain you want to stay where you are in the long run.

Good luck to us all.

[Jf24]

Here to stay.
Thanks