Question Out of BK for 2yrs can't afford house payments anymore, how to walk away???

[myevilbanana]

Went through BK about 2 1/2 yrs ago, house and everything was discharged. Been making voluntary payments since then. Can't get re-financed, property value has dropped to much even if I could get credit right now. Banks have said straight out they can't help me because I'm current on my loans even though we're barely living paycheck to paycheck... why would they care their still getting their money. Because I went through BK I now no longer qualify for any government loan help programs (the BK was their help I'm told). I can't save any money for any kind of down payment while trying to rebuild my credit my by making voluntary payments and making needed repairs to my home. Would just rent but can't find a rental with enough living space for 2 adults and 5 kids in the area that would be any cheaper then the voluntary payments...
But to my questions because I know no matter how it plays out I will eventually not be able to make the payments on time and it will be foreclosed on. How do I walk away? Just pack everything up and leave the keys on the kitchen counter? Do I need to tell the morgage company anything or let them figure it out? Do I send them the keys? Honestly I can't get an answer to the way I should handle it.
If I stop paying them to save money while I look for a place will it hurt my credit even more? If not how long can I go before they kick us out?
And lastly what can I take with us? We had no choice if we were to stay to put in a brand new water tank and furnise, I'd hate to help them get more out of the place when they won't help me keep the place.
Thanks in advanced...

[mountanddo]

Well technically if whatever is part of the house should stay with the house including wired in light fixtures. Don't you have to pull permits to have the furnace and water heater installed? Not sure if a used water heater/furnace is an option.

[myevilbanana]

I don't know if you have to pull a permit to do a furnace here but I'm positive the guy that put it in didn't and none of my estimates said anything about permits either. I didn't need one for my hot water tank. So if I had the time and resources replacimg with older units might be an opition... guessing just pulling stuff out would be seen as BAD and possible criminal even though before we bought this place we looked at alot of really jacked up foreclosed houses missing things that would have to be replaced before moving in.

[doni49]

Well legally speaking. you OWN the house and its contents until they take the title via foreclosure. They can't do anything to you even if you were to bull doze the place before the foreclosure happened. But I doubt if you'll find much of a market for a used furnace or HW tank.

[Diesel73L]

Went through BK about 2 1/2 yrs ago, house and everything was discharged. Been making voluntary payments since then. Can't get re-financed, property value has dropped to much even if I could get credit right now. Banks have said straight out they can't help me because I'm current on my loans even though we're barely living paycheck to paycheck... why would they care their still getting their money. Because I went through BK I now no longer qualify for any government loan help programs (the BK was their help I'm told). I can't save any money for any kind of down payment while trying to rebuild my credit my by making voluntary payments and making needed repairs to my home. Would just rent but can't find a rental with enough living space for 2 adults and 5 kids in the area that would be any cheaper then the voluntary payments...
But to my questions because I know no matter how it plays out I will eventually not be able to make the payments on time and it will be foreclosed on. How do I walk away? Just pack everything up and leave the keys on the kitchen counter? Do I need to tell the morgage company anything or let them figure it out? Do I send them the keys? Honestly I can't get an answer to the way I should handle it.
If I stop paying them to save money while I look for a place will it hurt my credit even more? If not how long can I go before they kick us out?
And lastly what can I take with us? We had no choice if we were to stay to put in a brand new water tank and furnise, I'd hate to help them get more out of the place when they won't help me keep the place.
Thanks in advanced...

If your mortgage was discharged in BK I would stop paying it now! One of two things will happen-either the bank will work with you (I know someone who didn't pay for two and a half years until the bank came to the table to negotiate) or they will foreclose. Either way, it takes a really long time-not sure how Ohio works, but if its anything like NJ you could live rent free and bank your money while your family has adequate space for a long time if you literally stay until the Sheriff's sale. Take the money you're saving on the mortgage and make some stopgap repairs in order to make the home livable. Keep on the bank after you've stopped paying-who knows-maybe they'll work with you? If not, just make sure you have a place to go once you're forced to leave. Even though you're not obligated to pay the mortgage because it was discharged in BK, the foreclosure will still remain on your credit for three or four years, but the BK remains for ten, so it's a moot point anyway.

[Flamingo]

If your mortgage was discharged in BK I would stop paying it now! One of two things will happen-either the bank will work with you (I know someone who didn't pay for two and a half years until the bank came to the table to negotiate) or they will foreclose. Either way, it takes a really long time-not sure how Ohio works, but if its anything like NJ you could live rent free and bank your money while your family has adequate space for a long time if you literally stay until the Sheriff's sale. Take the money you're saving on the mortgage and make some stopgap repairs in order to make the home livable. Keep on the bank after you've stopped paying-who knows-maybe they'll work with you? If not, just make sure you have a place to go once you're forced to leave. Even though you're not obligated to pay the mortgage because it was discharged in BK, the foreclosure will still remain on your credit for three or four years, but the BK remains for ten, so it's a moot point anyway.

Note that in many states the time is decreasing between one stopping their mortgage payments to time of foreclosure. It is now down to less than one year in our area - there is a house in our neighborhood on which payments were stopped summer of 2010 and the Sheriff's sale took place in early April 2011. The house was vacant as it could not be sold for their asking price (it was an estate house and the kids could not afford to keep up mortgage payments anymore, was heavily mortgaged and let it go). It was quickly snatched up for an insanely low price and a young new couple is now living there as of last October. One really can't bank on how long they will be able to stay in a house after mortgage payments are stopped. Best of luck...

[goturtlego]

It's very common for banks not to work with you if you're current. Once you start being deliquent it's at that time they will start the process (you have to prove a hardship. If you're caught up on your payments..where's the hardship..even if you're barely getting by, you're still able to get by, kwim?). Just because you filed BK does not mean you can't get a modification...it's been done many of times.

[SMinGA2]

One other thing to think about... You said you can't rent elsewhere for less, but would renting (for the same as your mortgage payments) and no longer having to deal with property upkeep & maintenance fix your budget shortfall? If not, in addition to ultimately finding a new living arrangement, look for ways you can cut back on other expenses. You should be able to save some money - investigate the foreclosure processes for your state to get a better idea - but you also want to be on solid ground when its all said and done.

[keepsmiling]

One other thing to think about... You said you can't rent elsewhere for less, but would renting (for the same as your mortgage payments) and no longer having to deal with property upkeep & maintenance fix your budget shortfall? If not, in addition to ultimately finding a new living arrangement, look for ways you can cut back on other expenses. You should be able to save some money - investigate the foreclosure processes for your state to get a better idea - but you also want to be on solid ground when its all said and done.

Of course the flip side of this is that you will lose the tax deduction.
Do the math and see where you land. Meanwhile you will need to decrease expenses/increase income somehow.

[myevilbanana]

But I doubt if you'll find much of a market for a used furnace or HW tank.

As far as selling them, ya probably worth about as much selling as I'd get scraping them but I thinking more along the lines of hopeful thinking if I were to get into another house in the not to distant future, wanting to look into land contracts. Just bought the furnace end of last winter when ours went belly up... it took care of our tax refund for us. And the water tank isn't much older. Its just money already spent & if it would save us money down the road it would be worth it. Of course till it might be used I'd have to find somewhere to store it as well.

One other thing to think about... You said you can't rent elsewhere for less, but would renting (for the same as your mortgage payments) and no longer having to deal with property upkeep & maintenance fix your budget shortfall?

Very True... fighting this place the whole way isn't helping matters there is something good about renting

but you also want to be on solid ground when its all said and done.

No Doubt... wanna end up where overtime is nice every now and then for some extra cash or when we're told we have to work it instead of trying to find reasons to come in early &/or stay late hoping we don't get slow so the paycheck will cover everything... Need to look more into renting then I have, I know my wife nor I really like the thought of moving two more times before all the kids are out (rental then a new house). Dispite what we may like to have it may still be what is best for us to get where we want to be.