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jerisman · Joined: 25 Sep 2007 Posts: 1 1.53 Dollars($)

Hello,
I filed for bankruptcy in 2000 and it was discharges in FEB of 2001 I filed because of the loss of income from my wife and her medical bills (she had cancer). I kept my house and kept up with the payments (they are still current) my wife passed away 3 years ago and because of bad spending after that time I am in a situation where I cannot keep up with my bills (I have drained all available money from my 401K and have no other liquid assets to try and keep up). I got married again 3 months ago and my wife has excellent credit and she also has a house, our plan was to rent her house out and live in mine. This plan is already not working because of problems with the people renting it and do not want to rent it out anymore. I have 2 mortgages on my house and with the current market as it is in Michigan there is no way I can sell my house for what I owe on my first mortgage let alone pay off the second mortgage (I owe around $215,000 a similar house down the street from mine just sold for $130,000. the house appraised for $205,000 2 years ago) I make good money but cannot keep up with my current debt load (my house payment for first and second mortgage are half of what I bring home). Sense I cannot file for bankruptcy again (and would not qualify for a chapter 7 anyway because of my income) my wife and I are contemplating allowing my house to foreclose. We may be able to sell her house but would also come up short (she has a first and second mortgage as well) but her house would be more affordable to live in than mine. I would appreciate any help you may provide. My credit is already no good because of the bankruptcy from 2001 so that is not of concern. I do not want to leave my problems with the bank but do not know what else to do.

I would appreciate any comments you may have.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Jerisman,

Welcome to the forum.

Before going for a foreclosure on your house, have you talked to your lender about some loss-mitigation plans? Through this process, the lender will develop a suitable plan for you so that you can avoid the foreclosure. To know more on loss-mitigation plans, you may refer to http://www.mortgagefit.com/loss-mitigation.html

evolovik26 · Posted: Wed Sep 26, 2007 9:12 am Post subject:

Well if you planning to drop one house anyway might as well try to rent it. If it works out then you avoid foreclosure and wait for better times. If it doesnt you are going to foreclosure anyways. As your property is in your name only this is not likely to affect your wifes credit or her property but a foreclosure will mean the end of good credit for you.

Posted: Wed Sep 26, 2007 11:22 pm Post subject:

You stated you filed BK and it was discharged in 2001- what chapter- 13 or 7? You may be able to file again under the other chapter.

You stated you wouldn't be able to file chapter 7 because of your income- that doesn't make sense. You have clearly stated you have more outgo than income, thus the potential need for BK (Millionaires have filed BK before because the income/outgo formula was out of whack).

The best advice to you would be to talk with an attorney. The will be fully versed in local and national laws regarding your situation, Provide them with all the requested information and they will be able to provide you with a professional and objective answer for your problem.

I know you don't want to put your problems on the bank (which is very admiral), but why would you continue to pay $200k+ for a $130k home?

smaildaytoday · Joined: 15 Oct 2007 Posts: 52 0.00 Dollars($)

The only thing you could probably due is call your
llender that has the mortgages and have them put your
amount your deliquient on in a forbearence plan. Most
lenders will allow you to do so....Also there is a new
foreclosure law out for homeowners that are behind on
mortgages. The federal government may be able to step
in.....

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