Recap: We just got discharged on cha. 7, but a few days before, the trustee decided to fight our homestead exemption because we no longer reside in our previous state. We were supposed to have a court hearing at he end of this month deciding this issue (which we were told would most likely go in our favor because everyone is entitled to a homestead exemption, and the law was just poorly written, leaving us the few who move and now don't get one?)
Anyway, latest information is that our lawyer and the trustee have talked, and the trustee requested the hearing be delayed until January. Why, I don't know. Lawyer said, worst case, we may have to pay a negotiated amount to keep the house (most would be $10,500, apparently).
Problem: We don't have a DIME, not a dime. If we took a loan against our 401K, we don't have the money for the monthly payment for that loan. We are zero-budgeted, live on the envelope system, and are truly starting over, with no money for savings or anything else. Our main claim to fame right now is we are actually living within our means and hoping to have more money later!
So, in the event that to keep the house we have to pay, and we can't, what is the process? Our mortgage was included in bk, so the balance is zero, although we continue to make the payments. However, if we found out we were losing the house, we would obviously not want to make those payments anymore.
How does it work when the trustee gets your house? Given the small amount of equity, would she really want the house? Would she then order an appraisal, yada yada yada?
If we decide to give her the house and walk away, I am guessing there wouldn't be a foreclosure because we owe $0, but who would get here first? Our mortgage holder or the trustee? I am sure the minute we miss a payment, the bank will be acting, since they are not protected. Our payment is $1500 a month. Can we be forced to make the payment until the trustee sold it? Does the trustee make that payment?
Credit-wise, what would that show? Our house in Iowa is in foreclosure, but shows IIB on the credit report. This house shows IIB on the credit report, and unless we reaffirmed (which we did not), it will never report payments or do anything to positively or negatively hurt us. Would walking away have any affect at this point on our credit report? Wondering, in case in a few years we ever got back on our feet and wanted to purchase a home again.
I hope this post makes sense - just wondering if this is all worth it. With the house payment and associated taxes and utilities, this pushes our budget to the max. We had considered selling it later if we had to, but now this. P.S. We have owned it 9 months. Equity, if any at all, could not possibly be much more than the $10,500 and that is BEFORE costs.
Since an order compelling us to turn over this property has been filed, if we say "Fine, here you go", will she croak? I honestly think she would be owing money before she would make any to pay creditors.
Anyway, latest information is that our lawyer and the trustee have talked, and the trustee requested the hearing be delayed until January. Why, I don't know. Lawyer said, worst case, we may have to pay a negotiated amount to keep the house (most would be $10,500, apparently).
Problem: We don't have a DIME, not a dime. If we took a loan against our 401K, we don't have the money for the monthly payment for that loan. We are zero-budgeted, live on the envelope system, and are truly starting over, with no money for savings or anything else. Our main claim to fame right now is we are actually living within our means and hoping to have more money later!
So, in the event that to keep the house we have to pay, and we can't, what is the process? Our mortgage was included in bk, so the balance is zero, although we continue to make the payments. However, if we found out we were losing the house, we would obviously not want to make those payments anymore.
How does it work when the trustee gets your house? Given the small amount of equity, would she really want the house? Would she then order an appraisal, yada yada yada?
If we decide to give her the house and walk away, I am guessing there wouldn't be a foreclosure because we owe $0, but who would get here first? Our mortgage holder or the trustee? I am sure the minute we miss a payment, the bank will be acting, since they are not protected. Our payment is $1500 a month. Can we be forced to make the payment until the trustee sold it? Does the trustee make that payment?
Credit-wise, what would that show? Our house in Iowa is in foreclosure, but shows IIB on the credit report. This house shows IIB on the credit report, and unless we reaffirmed (which we did not), it will never report payments or do anything to positively or negatively hurt us. Would walking away have any affect at this point on our credit report? Wondering, in case in a few years we ever got back on our feet and wanted to purchase a home again.
I hope this post makes sense - just wondering if this is all worth it. With the house payment and associated taxes and utilities, this pushes our budget to the max. We had considered selling it later if we had to, but now this. P.S. We have owned it 9 months. Equity, if any at all, could not possibly be much more than the $10,500 and that is BEFORE costs.
Since an order compelling us to turn over this property has been filed, if we say "Fine, here you go", will she croak? I honestly think she would be owing money before she would make any to pay creditors.
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