Anyone file for chapter 13?

[Delinquent]

This is looking like the only possible solution to get out of the situation we are in. Since I was unemployed for 5 months, our mortgage is about to go into forclosure due to it being 3 or 4 months overdue and with that big of a deficit, they said a repayment plan is not likely since our debt to income ratio only leaves us about $250/month to put toward the repayment. We need to come up with $3200 just for the house plus we are still 2 months behind on our car payments. If we weren't so upside down on the car's value, we'd trade it in for something else but it depreciated so much, we'll end up owning $19K on it. After we filed for chapter 7 a couple years ago, everything was going pretty good until I lost my job. With our credit being poor due to the hcapter 7's and the fact that it now shows delinquent payments on the house, no one will refinance us even though we have $80K+ in equity on the house. If anyone has any better ideas, please let me know as we are running out of options.

 

[jack sparrow]

Sell and take the 80k immediately. Pay out about 6-7 grand in cash to secure a decent apartment for about a year to sort things out. You can pay off outstanding debt with the money from the sale as well. After a year, hopefully you will have found work and still have enough to put down 20% on another house. Most banks wont question a 20% down payment...for the most part, at 20%, their investment is protected.

 

[Delinquent]

Sell and take the 80k immediately. Pay out about 6-7 grand in cash to secure a decent apartment for about a year to sort things out. You can pay off outstanding debt with the money from the sale as well. After a year, hopefully you will have found work and still have enough to put down 20% on another house. Most banks wont question a 20% down payment...for the most part, at 20%, their investment is protected.

Yea I was thinking about selling it but an apartment isn't feasible as we have 3 dogs (2 over 60lbs) and two cats. Plus with the housing market being as ridiculous as it is, we wouldn't be able to afford a decent house in this area any time soon. Maybe I can look into renting a house as that's something I haven't looked in to. Thanks fot the suggestion though

 

[jack sparrow]

JMO bor, I dunno what area you live in, but look around a bit. See what areas are cheaper, not only in your area, but different counties, out of state etc. Also check the local newspapers online for job opportunities.

Rent is money out the window....don't do it any longer than you have to.

Good luck to you.

 

[gonelifting]

You don't have many options, do you? I would definately sell the house, because if you lose it, you get ZERO. Am I missing something?

Unless you get some cash from somewhere/someone to keep you above water, then I would sell the house asap. There's a lot worse things that can happen than having 80k in cash and having to live in an apartment. Good luck man. Your username fits, I think you won that prize, bro.

 

[jack sparrow]

You don't have many options, do you? I would definately sell the house, because if you lose it, you get ZERO. Am I missing something?

Yes, that 80k is yours. Take it.

 

[aandd]

Sell the house, take the cash to dig out of the other debts. Find someone to take the pets in, and rent an apartment.

Also... are you sure a judge will even approve the Ch 13 since you've already filed in the past few years? Be sure to check out the changes in bankruptcy laws that go into effect on SEPTEMBER 1. It eliminates certain filings for those with an income. I would consult an attorney ASAP with regards to your options.

 

[FreakMonster]

How long ago was your BK 7 discharged?
What is your credit score?
How much do you owe on your house?
What is the value of your home?
How many times have you been 30 days late on your mortgage in the past 12 months and do you remember what months they were late?

Let me know the answers to these questions and I will give you options.

 

[Dial_tone]

Sell and take the 80k immediately. Pay out about 6-7 grand in cash to secure a decent apartment for about a year to sort things out. You can pay off outstanding debt with the money from the sale as well. After a year, hopefully you will have found work and still have enough to put down 20% on another house. Most banks wont question a 20% down payment...for the most part, at 20%, their investment is protected.

I would second this advice. A coworker was faced with the same issue last year. He was going to lose the house but he was able to sell it, get some equity out, move from SoCal to Tennessee, pay off debts and get a nice house for a fraction of what it cost in SoCal.

 

[2ez]

Bump...


Good questions by Monster. how much is owed and do you have an idea on what comparable homes in the area are selling for ?


I know several lenders. I will pass on your info as soon as you post.



Many with subprime credit, delinquencies, foreclosures and bankruptcie have found financing despite of past experience.

 

[Delinquent]

Bump...


Good questions by Monster. how much is owed and do you have an idea on what comparable homes in the area are selling for ?


I know several lenders. I will pass on your info as soon as you post.



Many with subprime credit, delinquencies, foreclosures and bankruptcie have found financing despite of past experience.

BK was discharged beginning of 2004
My credit score is 520 and my wifes is even worse around 480 (she has the house and the car in her name whereas I only have the house)
Owe $108K
Houses in my neighborhood are going for 180K-220K with some being less sq footage and not as many upgrades as ours.
We are about to enter foreclosure so we are something like 90 days late on the mortgage. This is mainly due to us not qualifying for repayment which means all $3500 to them or nothing. They won't accept partial payments.

 

[FreakMonster]

BK was discharged beginning of 2004
My credit score is 520 and my wifes is even worse around 480 (she has the house and the car in her name whereas I only have the house)
Owe $108K
Houses in my neighborhood are going for 180K-220K with some being less sq footage and not as many upgrades as ours.
We are about to enter foreclosure so we are something like 90 days late on the mortgage. This is mainly due to us not qualifying for repayment which means all $3500 to them or nothing. They won't accept partial payments.

Assuming your house is worth $220,000 the best my company or any other lender would do is 85% LTV. So your loan amt would be $187,000 and you would be getting roughly $79,000 cash out. This is assuming that you have a job right now. If your serious about refinancing to save your house make damn sure you don't go 120 days late or you will not be able to refi. with anyone. Going into foreclosure is the worst thing you can do. I find it hard to believe that your mortgage company won't work with you to make payments. The last thing they want is to foreclose on the house. I would call your mortgage company again and ask to speak to a financial analyst there. If all else fails I recommend you contact an investor that specializes in buying foreclosures to buy your property before you go into foreclosure. Granted you won't get Fair Market Value for your home but the whole point is for you to not go into foreclosure.

If your serious about refinancing you can PM me. Just keep in mind that your credit score must be 500 or above and if your using your wife to qualify for the loan she must at least have above a 500 also.

 

[Delinquent]

Assuming your house is worth $220,000 the best my company or any other lender would do is 85% LTV. So your loan amt would be $187,000 and you would be getting roughly $79,000 cash out. This is assuming that you have a job right now. If your serious about refinancing to save your house make damn sure you don't go 120 days late or you will not be able to refi. with anyone. Going into foreclosure is the worst thing you can do. If all else fails I recommend you contact an investor that specializes in buying foreclosures to buy your property before you go into foreclosure. Granted you won't get Fair Market Value for your home but the whole point is for you to not go into foreclosure.

Hell if worse comes to worse, I'd rather just have another finance company takeover the mortgage so that we could just continue paying the normal mortgage. The entire reason why we are so fucked is because we don't have $3500 laying around and won't be able to make that much and not use it toward other bills. In a perfect world, I'd like to get $10K of the equity to fix/improve some things on the house.

What I don't understand is this. With a simple market analysis, the lender can tell that there is plenty of equity so barring an economic crash, they will get their money by either us selling, paying them off, or foreclosing on the house. With that in mind, why are lenders so unwilling to take over the mortgage or give us a little of the equity to get back on track?

 

[FreakMonster]

Hell if worse comes to worse, I'd rather just have another finance company takeover the mortgage so that we could just continue paying the normal mortgage. The entire reason why we are so fucked is because we don't have $3500 laying around and won't be able to make that much and not use it toward other bills. In a perfect world, I'd like to get $10K of the equity to fix/improve some things on the house.

What I don't understand is this. With a simple market analysis, the lender can tell that there is plenty of equity so barring an economic crash, they will get their money by either us selling, paying them off, or foreclosing on the house. With that in mind, why are lenders so unwilling to take over the mortgage or give us a little of the equity to get back on track?

Yes there is plenty of equity in your home but the way lenders look at who they lend money on is based solely on credit and mtg history. Based on your current mtg history 1x90 most lenders will only lend you 85% of the appraised value of your home. I don't understand why your current lender will not work with you. Most lenders are willing to work with someone who is have trouble making payments. Are you sure you spoke with the correct person who services your mortgage? You should be able to make 1 months mortgage payment to avoid going into foreclosure. I've never heard of them asking for the full amount.

 

[Delinquent]

Yes there is plenty of equity in your home but the way lenders look at who they lend money on is based solely on credit and mtg history. Based on your current mtg history 1x90 most lenders will only lend you 85% of the appraised value of your home. I don't understand why your current lender will not work with you. Most lenders are willing to work with someone who is have trouble making payments. Are you sure you spoke with the correct person who services your mortgage? You should be able to make 1 months mortgage payment to avoid going into foreclosure. I've never heard of them asking for the full amount.

I just talk to whatever person calls to ask for money. Is there a specific person I should ask for when speaking with the mortgage company? BTW, the company is Aurora Loan Services

 

[FreakMonster]

I just talk to whatever person calls to ask for money. Is there a specific person I should ask for when speaking with the mortgage company? BTW, the company is Aurora Loan Services

You need to talk to the person in charge of forebearances. See if they can get you on some kind of forebearance plan. Remember they are not obligated to work with you especially if you have some equity in the house. Your best bet is to refinance or have an investor purchase your property.

 

[Razorguns]

You should've asked this a few months ago.

Your cerdit is *already* fucked. What good do you get now out of paying your debts while ignoring your mortgage?

I would've put all my money in priority #1 - the house then priority #2 - the car.

As for your debts -- you can always let it slide, then "settle" for less later on.

Chapter 13 doesn't take away debts. Only allows you to pay little over time w/o beign bombarded with interest.

You're better off letting debts slide, then settle for 50% off later on when it goes into collections. If you can't pay your debts -- that's your best solution, since your credit is gonna be fucked anyways.