To Leave or Not To Leave

[nioka]

My chapter 7 was discharged 7/14/14 and I am surrendering the house. The mortgage company does not appear to be any rush to foreclose and I am living in that house saving money. Recently I received a letter from the bank for a modification or Deed in Lieu. I sent them a request for a DIL. My intention is to accept a DIL and begin looking for new housing.
I called an old rental reference to verify that reference was still available. I found out that they will have a unit similar to one I had rented in the past some time this fall. These units are in a very nice 55+ community and very nice indeed with very reasonable rent. I left my phone number with the manager and I am sure when that unit becomes available it will be offered to me.
If the DIL comes through there would be no problem. However, if the bank rejects the DIL request and goes for a foreclosure there is no telling when the foreclosure will occur.
After my 341 meeting I asked my attorney when I could leave the property. He told me I could go any time I wish but as I can live there rent free it would be to my advantage to stay and save. I just met with my attorney again and he reassured me that regardless of the HOA or grounds upkeep I can leave without any concerned of having anyone pursue a judgement. I am retired with no assets and have bullet proof income, (SS and ERISA pension).

If I stay I could save a lot of money but I am anxious to get on with my life. It would be great if the DIL comes through, but if not the house will go to foreclosure with an unknown timeline.

If the bank does not offer a DIL should I take this rental unit and move on? (The two residence are 180 miles apart so going back and forth would be impractical).

[Drazil65]

Stay as long as possible, the chances of the bank going through with a DIL is slim and a lot of paperwork as well as takes a long time if it does happen. This is your chance to really save quite a bit of money and get that emergency fund built up quickly as well as have money to move when you need to. Don't blow this opportunity, there will be other rental opportunities and you will kick yourself over and over if you move and the bank takes the usual 1 to 2 yrs to foreclose. This is your opportunity to boost start your fresh beginning and really make good financial decisions for your new life.

[nioka]

Drazil65,

Thanks for the post and advice.
If I could sit it out I could save a bundle of money as you said.
I feel like I am in limbo with my current situation and would simply like to get on with my life.
As I know I am going to give up the house I have no more interest in it and no desire to do anything.

I have often commented and questioned how others wait out the bank. I find the situation very stressful.

[LadyInTheRed]

I think you need to change your attitude some how. You won't have any interest in a rental either. Just think of yourself as a renter who is maintaining the property in exchange for rent. There is no reason the situation should be stressful if you don't get upset every time you receive a notice in the mail from the bank. Notices will come and you are not required to do anything until the bank forecloses and sends you an evction notice.

[Drazil65]

I agree with LITR, work on changing that attitude and relax, you are through the hard part and you are discharged. Who wouldn't jump at the chance to live for free and build up an emergency fund and then some? Slow down, take a step back and think about your goal to achieve financial freedom or at least financial "be comfortable" status. You are now at the "one step at a time and it is going to take some time" to get that new, fresh start propelled in the right direction.

Attitudes and habit will have to be adjusted, learning to live on cash and waiting for you want as you save to be learned (no more instant gratification using CC). What better way to jump start this process than to live for free and bank the money? Not sure you will ever have this opportunity again unless you move back home and live free off of parents (or whomever) at some point so it seems like a no brainer.

[nioka]

LadyInTheRed & Drazil65

Thank you for your helpful posts.

"You won't have any interest in a rental either. Just think of yourself as a renter who is maintaining the property in exchange for rent." This hit home with me and I appreciate your insight.
A friend also pointed out that prior to filing bk I notified my bank of my intentions. My bank was also notified when I filed bk that my intention was to surrender the property. My friend pointed out that it is my bank that is delaying the foreclosure and I have no control over it therefore no responsibility.

I am retired and through my many years I have never failed to pay a bill. Many times I did struggle to make payments but I always managed. Even with the logical arguments that I agree with it is still difficult for me to live in a house without paying.
I will need to adjust as you suggested.