Posted on: 18th Nov, 2008 12:15 pm
Hello,
I currently owned primary home with my spouse that we bought together about two years ago. I used to owned two rental homes before that as a single woman.
In October 2007, I put the house for sale (rented from 11/2006 to 1/2008) so I can pay down the home we owned together and pay off all credit card bills so we can both live comfortably but that did not happened. My renters decided to vacate the house on 1/2008 because the house was in the market for many months. The house did not sell and even when it was on short sale either until it went foreclose two months ago. It was sad to see it go because I borrowed the money from my 401K to put the down payment for this house and still paying the monthly payments for the loan that I borrowed.
I also have one more rental home left (my first owned home after my ugly divorce) and my renters just vacated the home on 8/2008 and at the moment there is no income coming in for this house. I failed my first mortgage payment for the month of November and the loan will recast in 10/2009 (currently in negative arm loan). This home is upside down right now due to the type of loan that I chose when I was buying the home with my new spouse and realized that I made a very poor decision when I acquired this loan for this house.
Right now, I am considering filing chapter 7 due to the lost of my first rental home and all the excessive credit card bills and more bills.
My question is:
Do I have to include my only rental home in chapter 7?
Your comments is very much appreciated…
:oops:
I currently owned primary home with my spouse that we bought together about two years ago. I used to owned two rental homes before that as a single woman.
In October 2007, I put the house for sale (rented from 11/2006 to 1/2008) so I can pay down the home we owned together and pay off all credit card bills so we can both live comfortably but that did not happened. My renters decided to vacate the house on 1/2008 because the house was in the market for many months. The house did not sell and even when it was on short sale either until it went foreclose two months ago. It was sad to see it go because I borrowed the money from my 401K to put the down payment for this house and still paying the monthly payments for the loan that I borrowed.
I also have one more rental home left (my first owned home after my ugly divorce) and my renters just vacated the home on 8/2008 and at the moment there is no income coming in for this house. I failed my first mortgage payment for the month of November and the loan will recast in 10/2009 (currently in negative arm loan). This home is upside down right now due to the type of loan that I chose when I was buying the home with my new spouse and realized that I made a very poor decision when I acquired this loan for this house.
Right now, I am considering filing chapter 7 due to the lost of my first rental home and all the excessive credit card bills and more bills.
My question is:
Do I have to include my only rental home in chapter 7?
Your comments is very much appreciated…
:oops:
Hi sleepless nights!
There is nothing like you have to include it in Chapter 7. It depends upon your wish whether you want to include it or nor. However, I would suggest you to go in for Chapter 13 rather than chapter 7. It will help you in reorganizing the debts and also saving the property. You may also try to rent the property once again so that you will be able to pay the mortgage with that money.
Moreover, you have also mentioned that you have credit card bills. In that case, you can consolidate the credit card debts.
Thanks.
There is nothing like you have to include it in Chapter 7. It depends upon your wish whether you want to include it or nor. However, I would suggest you to go in for Chapter 13 rather than chapter 7. It will help you in reorganizing the debts and also saving the property. You may also try to rent the property once again so that you will be able to pay the mortgage with that money.
Moreover, you have also mentioned that you have credit card bills. In that case, you can consolidate the credit card debts.
Thanks.
Hi guest,
Welcome to our forums.
I don't think you should include the rental home in the bankruptcy. How much of credit card debts do you have? you can go for debt consolidation or settlement instead of filing a bankruptcy. have you started looking for a tenant on the rental home? I think you can use your rental income to pay off the mortgage.
What I feel is, since one of your rental homes has been in foreclosure, you should file bankruptcy and affect your credit score further. By the way, is the mortgage on your primary residence an Option ARM?
If at all you wish to file bankruptcy, chapter 13 will be a better choice because in the long run, it'll have a positive effect on your credit report.
May god bless you.
Samantha
Welcome to our forums.
I don't think you should include the rental home in the bankruptcy. How much of credit card debts do you have? you can go for debt consolidation or settlement instead of filing a bankruptcy. have you started looking for a tenant on the rental home? I think you can use your rental income to pay off the mortgage.
What I feel is, since one of your rental homes has been in foreclosure, you should file bankruptcy and affect your credit score further. By the way, is the mortgage on your primary residence an Option ARM?
If at all you wish to file bankruptcy, chapter 13 will be a better choice because in the long run, it'll have a positive effect on your credit report.
May god bless you.
Samantha
