I didn't want to hurt your points. But I just wanted to make him aware that in case he requires that in future then he should not be in a position where he needs it now and his score allows him to take one year after.
If somebody can afford his current cash then there can't be anything better than that. Don't think I am expressing any of my views from the side of a lender.
Even I agreed with what you said that foreclosure seems to be the most probable solution to him now but one should suggest keeping in mind future too.
I have no intentions at all to make him afraid or confused. Instead my suggestion regarding his score was for the period after he settles down with his current problems.
LM Guest
Posted: Tue Jun 27, 2006 2:22 pm Post subject: More Rantings
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Shalam
Lets be honest. No person should base their financial life based on what some anonymous person posts on a message board in cyberspace. With that being said I offer the following:
I am afraid you are misunderstanding a great deal of your current situation. The choices you make in the next 12 months could have a lifetime full of consequences.
The one thing you do have going for you is your intuition. Like you said, "this is no way to live" and that is a great statement!
I do not believe you have any emotional attachment to your (the banks) house. And if you did I would tell you to get over that emotional attachment as soon as possible.
Isnt that funny? How about from now on we refer to the house as the Banks house. Because that is what it is. You are merely an occupant of the banks house. The Bank's house sure has some water issues...doesn't it? The Bank's house sure has some gutter issues, doesn't it?
I don't know about you, but that would make me feel better already. The sooner you stop using of the term "my house" the better you will feel.
((( By the way- What would your emotions be if you had actually used YOUR OWN money for the down payment. The fact is you used "other peoples money" i.e. taxpayers. What if you had saved up that 18K over the past several years from hard work and now you were stuck in this house....your OWN 18K was stuck in this house...would make for some sleepless nights or?))))
Today, take out a calculator and a piece of paper. Add up the money you could save not paying your mortgage for 9-12 months. Add up the money saved from selling the car (and insurance- they can not force that - no matter what "they" say) (LOL I would like to see an insurance company issue a policy on a car you do not own). Then you can start to do some calculations on what that money can earn you in some safe easy investments - bonds, CDs, etc.
Send me an email if you ever want some more ideas:jck321_98@yahoo.com
Lets be honest. No person should base their financial life based on what some anonymous person posts on a message board in cyberspace.
LM,
Every visitor and members here are responsible and intentionally none would give any sort advice that can harm anybody. I believe that the moderators here are well aware of what is going on in the forums.
It's true that one must take his own decisions and not get influenced 100% by some other person whom he doesn't know.
May be you are correct with your suggestions LM and all of us I believe here will be happy if you prove to be helpful to someone as our intention as a community is that only.
But we must never disrespect views of sombody as things are solved not by blaming each other but through healthy discussions. We try to help each other as friends.
Why don't you too become a member of our community and help the visitors with your valuable advice? _________________ Lets help each other. Try my blog
Shalam Guest
Posted: Wed Jun 28, 2006 1:28 am Post subject:
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Hi you all,
I am very thankful that you all have bothered to give your advice, bcuz you didn't have to.
Yeah, if I have a good chance at succesfully getting out of this house and out of the debt by doing the bankruptcy, then that's exactly what I want to do.
Bcuz like I said, this isn't how I wanna live. And about $90 of that $350 that's freed-up each month with my budget is made possible by me dropping all my heath insurance stuff.
If I can make it through this, then I wouldn't even care much about the credit backlash. The only way I'd try getting a house again is if some years from now I find a nice woman and we feel we're meant to be together. And that's WAY down the road. Easily after the 10 years. I will pay everything else in cash. And I guess paying my rent on time, along with my other bills like utilities and phone, will help repair my credit a little over time. But I think I'm through with the whole credit setup, UNLESS like I said, if I get married or somethin and decide we need a house. Other than that, just straight cash.
I've asked this questions a few times, and I'll ask again. I'm not trying to be pushy, but would someone answer?
Is that^ how I should go about doing it? It seems like it would be best to get the apartment before my credit is trashed. And it seems like it would help my case by having to pay rent, bcuz that should be obvious that I can't afford to pay rent AND a mortgage, or rent and 1000's of dollars of the remaining balance. Oh, and credit card debt.
I'm going to talk to an attorney before I actually start the process, but I'd appreciate your response
Also, what are some reasons that a bankruptcy can be dismissed?
I hope me purposely letting the house foreclose isn't one of the reasons.
Anyways, thank you all for hearing me out. I appreciate it.
Posted: Wed Jun 28, 2006 1:47 am Post subject: RE:
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Hi Shalam,
Welcome back.
I think you can follow the process which you have mentioned here. But just get it verified with your attorney as bankruptcy is a legal issue and you need to be more cautious about it.
Posted: Wed Jun 28, 2006 1:58 am Post subject: RE: filing bankruptcy
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Hi,
You need to follow some steps before filing for bankruptcy. The law requires you to first go through credit counseling to detect your ability to pay debts and then there's the Means Test which determines the type of bankrutpcy you should file.
Posted: Wed Jun 28, 2006 7:48 am Post subject: Shalam
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Shalam,
You do not need to delcare bankruptcy. Bankruptcy is meant for people with some assets- like a house for example that they want to KEEP.
Here are the steps you need to do:
1. Stop paying mortgage.
2. Continue to live in the house and save that mortgage money.
3. When the Sheriff comes 9 months from now, THEN you leave the house (ignore all the nasty Banker letters in the meantime).
4. Any apartment that you can get- even if your credit sucks- especially since you will have tons of cash for a deposit if need be. You would even be able to pay a 6 month lease in advance with the money saved!
5. THERE IS NO NEED for you to declare bankruptcy.
6. In the early 1980's people in your situation simply walked away from their houses.....they just left the keys on the counter and let the bank have it.
7. Save your money, wait for the Sheriff, then walk away.
It is a free country (still)- You dont HAVE to do anything.
(by the way- Jerry failed to mention that bankruptcy counseling also cost money)
If anyone can make a point as to why Shalam should not follow this course then speak up- Especially given all the facts/his wishes/his age. the fact is this is what most people should do.
But a Bankruptcy attorney will not tell you this- this is advice that he does not earna dime for. Lenders will not tell you this because they are the ones that end of gettig screwed. Counselors will not tell you this becuase they lose income as well.
Shalam, look our for yourself, dont expet anyone else to (even if you pay them!)
Once you have decided for a foreclosure I too think like LM, that you don't need to file a bankruptcy.
Normally for a foreclosure process the property is foreclosed by a lawsuit in the circuit court of the county.
The sheriff of the county auctions the property to the highest bidder for cash required for payment recovery.
In case of any deficiency even after foreclosure there is no right to collect the deficiency from the owner. So, perhaps that will give you relief.
LM Guest
Posted: Wed Jun 28, 2006 11:35 am Post subject: Sorry
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Please excuse the spelling errors above....was in a hurry!!
The Bankruptcy Attorney Guest
Posted: Wed Jun 28, 2006 12:46 pm Post subject: DAP Loan
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Apparently you have something similar to our Kentucky Housing Corporation DAP loans which requires that you personally live in the home for a time in order to get 10,000 to 25,000 as a grant. This grant allows you to pay only 55,00 for the home and you cant pay it off early unless you want to repay the entire 75,000. Bankruptcy does not get rid of the mortgage. It can completely wipe out the unsecured debt you have which may make living affordable but it doesnt wipe out a first mortgage. In some cases it may wipe out a second mortgage in a Chapter 13 where the second mortgage is really an unsecured debt because the first mortgage is equal to or more than the value of the home. The only practical use of a 13 is to catch up overdue payments. After the changes to the code last year some people who earn over the average wage for thier size of family may however be forced to file a 13. As to a Chapter 7 that is normally filed to redeem personal property or to wipe out unsecured debt.
What I suggest is that unless these repairs are so serious that they would eat up the advantage of the 20,000 grant that you find a way to repair the home. You have walked into a home with an instant 20,000 in equit ..... provided you stay in the home. Not many people can make 20,000 so quickly. The only advantage to filing bankruptcy would be to allow you to shed the unsecured debt. Under the FHA VA etc regulations you can buy a home within 2 years after the bankruptcy is over at normal rates. The only other purpose to have credit over the next two years would be to perhaps buy a car. If bankruptcy really would provide so much relief and spare income I would do it. Regardless of what the experts say in their forecasts of gloom and doom most of them dont know and havent filed. It simply isnt the kiss of death that they paint it to be. Sure a good fico score is important. A bad fico score will cost you more in your interest rates and insurance rates. However if you got to do it .... you go to do it. If your credit is already shot you have little to lose and your credit can be repaired. I have plenty of clients that have over 700 credit scores within a year after filing and you only need a 600-650 score to qualify.
mjk Guest
Posted: Wed Jun 28, 2006 1:05 pm Post subject: PS
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I dont know who suggested to just walk away from the home and suggest that you never will get sued. Having a foreclosure on your record is much worse than bankruptcy and you have the problem that for the next 20 years until the statute of limitations runs that you will owe the 75,000 for the house minus the money recovered from the sale of the home not the 55,000 if it goes back. The house will sell at a bargain price at the courthouse steps and that price will be deducted from the 75,000 dollar loan and you wont get the bargain of the other 20,00 DAP grant because you didnt complete staying in the home for 20 years. As a result, if you let it go back you wont be able to but another home until the deficency judgment against you is paid or you file bankruptcy and discharge the debt if you let it go back in foreclosure. All you can to is either
1 sell it to someone else for at least enough to pay it off (but dont commit fraud)
2 File bankruptcy and let it go back
3 File bankruptcy and keep the home if you can afford it after filing bankruptcy or
4 Pay for the repair and not file
Simply walking away from the home is stupid. You lose the 20,000 grant and you end up owing for the foreclosure deficency and having a foreclosure on your record. You want to somehow keep the home unless it is a real lemon and if it is a real lemon the proper way to let it go back is to file bankruptcy while you have no substantial assets. At least in my state we do sue for the deficency. Only a minority of states have a no deficency law. Of you want info please see the manual on bankruptcy at Bankruptcy-Divorce.com
Guest
Posted: Wed Jun 28, 2006 4:33 pm Post subject: RE:shalam
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Shalam - Welcome to our forum. Don't feel like you are the only one with problems like this. We all make mistakes in life. This forum is open to discuss such things and find logical and practical solutions to resolve such situations. I would always be skeptical about certain things especially when purchasing a home. Based on what you said, I am guessing there was not a realtor involved or that you met and discussed things with the seller before making the decision to buy. I haven't heard of this assistance program you speak of, maybe it's only for Kentucky. However the fact that this particular house came with it should have raised a red flag why this house? I would have asked what is wrong with it that it qualifies for the program. Did you ever ask to speak with seller, or just get mortgage approved and move in? It sounds like everyone might get to qualify just so they can sell that certain house. It is just something to think about. By law a seller must disclose certain things to a buyer before they buy, and fix what needs fixed before your final decision is made. It is called sellers property disclosures statement and you should have gotten one in all of the legal documents. You also needed to have a walk through the house to see what is wrong, and at the home inspection is where you make the final decision based on what is wrong with the property whether or not to buy. Did the home inspector do a thorough inspection and give you a written detailed report? What he found wrong was not a list of things that the seller needed to repair, but for you at that time to make the final decision based on everthing you say is wrong to not buy. It is your decision no one elses. I don't know if you have a case against seller since you never voiced these concerns to seller before buying. I would seriously take one thing at a time. For the windows this can be easily repaired for now. Get some 3m shrink rap to put on windows. You just blow dry it on there and it will stay until you remove it. Ants are easliy detered by cucumber peelings place them around outside of home by doors and windows and inside also. Ants hate this smell and will avoid it, also ivory liquid dish soap and water mixture poured on ant hills will kill them soon. I would leave down the carpet that is good, or sometimes stores will give you left over carpeting. It is not used just what they cut off of bigger rolls. A second hand store might have some too that is good. I would go through each room and write down what is wrong and what you need to fix it. It is never easy owning a home especially at a young age. There will always be problems if not now later on. Yes, I am having my own situation too. It is on this forum I will probably have to take the realtor and builder to court. I now find out that there were violations against this property that the realtor did not disclose. It is a brand new home too. Everything should be right, right wrong It is driving me crazy too. It has been a year now and nothing has been solved. I try not to let it get to me but different lawyers I spoke to said to take them to court. I really don't want to I just want what we paid for. I would clean up the dead ants, vaccuum, and do what small repairs you can. May be in the future you could sell this house as a as is fixer upper. You must remember that you want to be honest with what ever you do not get fixed tell the prospective buyer. Some people do like to buy homes and put money into them and make them better. The home of course cannot be dangerous to any buyers though. For instance you could not sell without disclosing whether there was asbestos in the siding or termites or other vermen there or gas leaks or cm leaks or fiberglass uncovered. It also should be told how long ago was property built, any damage to foundation inside basement or outside cracks. I would think about this option at least for now. You said you cannot refiance and bankruptcy might make things worse on getting a apt again. If you had a friend move in with you and you both contributed to getting this house put back together might work temporarily. I would find out from reputable professionals just how bad everything really is. I mean if it is dangerous to live there such as if asbestos were found in siding than you seller should have found this out before selling. Is foundation intact or are there cracks that could be structural, how about plumbing and electrical what are these things like? If these things check out all right you might be able to stay there. Is there a decent yard or garage? Did you ever ask seller about these things now? I would not spend any money on big things right now just the small things I mentioned. If you got a lawyer it would cost too much money, and you don't always win your case. You have to prove it to the judge. No matter how good a lawyer has prepared and presents your case it can go the other way and you still are left with legal fees and no solution to your problem. I hope I gave you some help with the other options. spkll1 _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Shalam Guest
Posted: Thu Jun 29, 2006 1:23 am Post subject:
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Crap,
That response a couple of posts back was the Bankruptcy Attorney that I emailed. I asked him to look over my situation on this topic and tell me if I could get out if it with a bankruptcy.
He said it wouldn't do anything for a first mortgage
Am I really stuck here!?
OMG
I'm going to for real go crazy if I'm stuck here!!
Is he saying that a straight out bankruptcy without a forclosure wouldn't do anything, OR no matter what I do it wouldn't get rid of the mortgage?
If that's what he's saying, then if I let it forclose I'll loose the house and still have to pay back the deficiency even if I file for chapter 7 after the forclosure.
I'm going to call and ask when I wake up. There HAS to be some way out.
Surely I wouldn't be the first person to ever had a home foreclose, and then after the property has been sold and they come trying to collect the balance, file bankruptcy and not owe.
AHHHHHHHHHHHHHH!!
to the "guest":
Yes there was a realator involved. And I've already bought the replacement windows.
Thanx for the tips
Aw man, I'm about to just go to sleep before I start worrying so much that I won't be able to sleep.
Shalam Guest
Posted: Thu Jun 29, 2006 1:46 am Post subject:
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Hi LM,
Hey, don't think I haven't been listening to you. I really aprreciate your responses.
So, if I do like you said in your second to last post, won't they come trying to collect the rest of the balance if they don't sell the house for what the loan was for?
Sorry if you've explained that already. I'm trying to catch on, plus so much is going through my mind right now. Please forgive me.
I noticed that the attorney said that there is no way out of the mortgage, but if the lender decides to sell the house, then isn't that me getting out of the mortgage? It's just if they will pursue the rest of the balance or not. Or if the folks that issued the downpayment assistance will aswell.
I'm all ears buddy. I aprreciate you, and the others aswell
Shalam Guest
Posted: Thu Jun 29, 2006 1:59 am Post subject:
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Hi mjk,
I read what you said. The attorney guy said that bankruptcy wouldn't do anything to the mortgage. I wonder if he's talking about me trying to do it without the foreclosure.
Nah, I don't wanna keep the home. I want out of this whole situation so I can go on with my life, and not be depressed.
I think your suggesting something similar to what I was asking about. When they try to get the deficiency that's when I file bankruptcy, right?
If so, that's what I was thinking of doing.
thank you for your reply.
I'm gonna get some sleep now. I'll be back when I wake up
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jameshogg
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