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BK AFTER BEING SCREWED
Guest
0.10 Dollars($)
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Post subject: HOW BAD IS IT TO FILE BK ON ONE HOME IF YOU HAVE ANOTHER 3 |
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Oh yes, the loan was "unconventional" something that we were not previously explained, and we were told if we did not close that we would have to pay back all of the loan bit by bit or declare bankruptcy and still have no where to live. We were told that if we declared bankruptcy they would (sellers) sue us every three years until we paid them in full for the house. This is what a lawyer explained.
Later we were informed that the banks loan officer had disclosed to the sellers agent the amount of money we were able to borrow.
Since we have a home to live in and would not need credit once we get rid of the other house payment, how would poor credit really affect us? How long/bad would it be to do ch7? If we had to do it bc we run out of options (currently feeling this way) how long is the process? How does a means test work? Would allowing them to foreclose be a better option? |
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Niicss
Joined: 03 Oct 2005
Posts: 2617
Location: New Jersey
409.01 Dollars($)
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Hey,
Have you consulted with the lender as Larry has suggested. Consult with the lender and if you can sell the property then you can request the lender for deed in lieu of foreclosure. If he accepts the deed in lieu then you will need not to pay the difference that you owe to the lender and the sale price.
Let me know if you have any more questions.
_________________
Good is the Enemy of Great. |
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BK AFTER BEING SCREWED
Guest
0.10 Dollars($)
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Post subject: HOW BAD IS IT TO FILE BK ON ONE HOME IF YOU HAVE ANOTHER 3 |
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That sounds like a good option. I will have to see. Who do we have to talk to about this? You are saying that if we sell the house for a mere 60,000 the 29,000 that is not covered would be forgiven?
Also, we would then have to pay a realtor to sell the house? I don't believe we could cover this cost. |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 328
Location: Houston
75.44 Dollars($)
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Hi Guest,
I just read your post about your unfortunate situation. It would be good to speak with the lender about a short sale. Below I will explain the difference between a deed-in-lieu and short sale.
Short Sale: A “short sale” is a sale of the property for less than the total amount owed on the mortgage. If the home owner owes more on their property than it is worth, an investor (we can arrange you with an ethical investor) may be able to convince the mortgage company to accept a short sale. Most lenders would rather have the majority of their money back than the hassle of a foreclosure, legal fees, renovation, and marketing costs associated with the reselling of the property.
Deed-in-Lieu: A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor (home owner) voluntarily deeds the property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from home owners who can financially make their mortgage payments
Since you will be unable to continue making payments the short sale would probably be the best option because it would allow you to sell the home cheaper than what it is worth and hopefully a “bargain” shopper would notice and purchase the house.
With regards to your credit I would not worry because your credit can begin being restored and soon as this process is behind you. Generally, it takes about one year to restore your credit with a “credible” credit restoration company.
With this option you should be able to avoid filing BK. I say this because it sounds like the mortgage on this home is the only thing that is draining your cash. If you get rid of this mortgage will you be able to pay down your other debts
_________________
Cliff Pape
Market Analyst
www.home-buddies.com |
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BK AFTER BEING SCREWED
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0.10 Dollars($)
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Post subject: With bankruptcy, when do we stop making the payments? |
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I am not even sure that we can make the payment this month and then to add to that I am not sure that we can afford to pay an attorney to start the process yet either. What happens if we do default on a payment prior to bankruptcy filing?
How do they run a means test? What kinds of things will they consider? do they consider the total of both of the house payments in this? What about alotting for food and stuff of that nature. In my family of 5 we typically spend at least $500 a month on food. I am wondering if this is too high.
If we allow them to foreclose instead of declaring bankruptcy, then they can sue us for the difference, and then may be uneligible for bankruptcy in regards to the means test right? |
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Niicss
Joined: 03 Oct 2005
Posts: 2617
Location: New Jersey
409.01 Dollars($)
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Hey,
You have not yet informed us whether you have consulted with your mortgage company or not? See they can avoid you. But you need to try again and again. I think deed in lieu will be a good option for you. If the mortgage company accepts the deed in lieu then they will not come after you for the deficiency judgment. But if they foreclose then they will surely claim the deficiency judgment.
_________________
Good is the Enemy of Great. |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 328
Location: Houston
75.44 Dollars($)
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Post subject: |
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BK AFTER BEING SCREWED Niccs is right you need to contact your mortgage company. If you are afraid visit home-buddies.com you will find a "FREE" step by step guide as to how to deal with you lender.
Do not be afraid to contact them they will help.
Who is your lender?
_________________
Cliff Pape
Market Analyst
www.home-buddies.com |
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BK AFTER BEING SCREWED
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0.10 Dollars($)
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Post subject: mortgage lender |
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| Chase. They wouldn't even let us defer one payment. |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 328
Location: Houston
75.44 Dollars($)
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Post subject: |
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Have you missed a payment?
_________________
Cliff Pape
Market Analyst
www.home-buddies.com |
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BK AFTER BEING SCREWED
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0.10 Dollars($)
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Post subject: no |
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| never |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 328
Location: Houston
75.44 Dollars($)
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Post subject: |
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Very good this helps me better understand how Chase will view your case.
Since, you have not missed a payment they are not looking at other options for you yet. That is why when you ask them to defer a payment they say no. They are only trying to keep you paying as long as they can. Once you have missed a payment or two then they start to consider other option which I know sounds weird but, that is how Chase works.
If I’m correct you do not want to keep the house is that right?
If you do not then you probably should look at a short sale because given the condition of the house the lender will probably want to get rid of the house via a short sale. More than likely they will not want to do a DIL because they would then be stuck with a house they know they cannot sell. With a short sale someone could by the house on the cheap knowing it needs repairs. This would solve the lender and your problem. Did you have a chance to look at the step-by-step on home-buddies.com website it will help you.
Now if you want to keep the house to save your credit we will need to take a different route.
Don't worry I'm here to help and we will get through this together. 
_________________
Cliff Pape
Market Analyst
www.home-buddies.com |
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STRESSED
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0.10 Dollars($)
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Post subject: UNABLE TO MAKE MY MORTGAGE PAYMENT |
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| I will not be able to make my monthly payment any longer I have decided to just keep up with all my other current payments in order to do that I will not be able to pay my house payment I honestly don't think I will be able to keep this house too much longer if I do short sale will I be able to purchase another home, I dont want to file bk and trying to avoid foreclosure I just need to get out of this loan that I can no longer afford will foreclosure affect my credit tremendously I have 750 credit score at this time what would be my best solution also would I be liable for any amount due even if the home sells in short sale and what if it doesnt if I go into foreclosure will I also be liable for any amount |
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Niicss
Joined: 03 Oct 2005
Posts: 2617
Location: New Jersey
409.01 Dollars($)
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Welcome Guest.
As you don't want the property or cannot afford the mortgage payments, I feel the best thing is short sale. It will not affect you credit much. But you will have to pay the deficiency amount if the mortgage company doesn’t forgive the deficiency amount. You can get approved for a mortgage loan even after short sale but it will depend upon your affordability.
Let me know if you have any further queries.
_________________
Good is the Enemy of Great. |
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AZMan
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Post subject: foreclosure |
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| if i go to foreclosure... I canot afford my mortgage anymore and I dont really want to keep the house...How bad can the situation get...I know this will affect my credit very badly, however will it also affect my wifes credit eventhough the mortgage is only under my name? And is there any hope in re-building my credit after foreclosure? I have always maintained a fico of 700 or higher.. I live in the state of Arizona |
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helping_user
Joined: 31 Mar 2006
Posts: 815
Location: Hawaii
154.76 Dollars($)
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Post subject: RE: unable to pay mtge - affect spouse credit |
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Welcome Azman.
Your wife's credit will not be affected as she's not on the loan. And yes, you can rebuild credit after foreclosure. Must say you've ad a great credit score.
Regarding how to rebuild credit, please take a look at the credit repair section .
Thanks. |
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