Specific questions about surrendering home.

[swiminindebt]

OK, I will try and include as much detail as I can, so that anyone who may have been here before can share some info. I filed chapter 7 in October 2005. My case was closed and discharged in January 0f 2006. I kept my home in the BK, but signed no reaffirmation on my 1st or 2nd mortgage, which were included. I had never been late on either and have continued to pay on time up to date. I recieve no statement from either and actually the 2nd still reports on my credit monthly.
* I owe approximately 113K on my 1st, which is held by Saxon mortgage
* I owe approximately 42K on my second, held by Homecomings(125% 2nd)
* Approximate appraisal value of my home is 150K
As you can see, I am upside down a little, thanks to my 125% second mortgage(never a good idea). We have considered washing our hands of it and finding another home. I see tons of information about BK home loans and decent rates, don't know if they are all true, doubt it. However, for what I pay now, about 1490 per month, I could be paying for a 200k house, which I don't want.
We have looked at several homes in our area that, if purchased for a decent rate 6.5 - 7.5 %,my credit score is around 680 now averaged, would save us around $300/month. I guess I'm just looking for advice and stories of other "folks" experiences. I live in SC and am not sure about the foreclosure laws, etc. that would go along with surrendering the home. Any advice would be greatly appreciated...thanks.

[SinkingFast]

Foreclosure in SC is always Judicial. There is no Non-Judicial "Right to Sale" clause type mortgages in SC.

Your Lender will have to sue you first to get an Order from the Court allowing them to Foreclose. When you get served, the Court will give you a time frame to Cure the delinquency before the Lender can proceed with the Foreclosure.

It's a bit convoluted and the time line varies.

http://www.foreclosures.com/www/page...2.asp?state=SC

So how long you'd have to stay in the house is really not known.

And the payments you're seeing on TV or in the newspaper, ads you may hear on the radio,............. Those payments quoted are for people with really good credit who would qualify for the best rates available. Maybe even put down additional cash to buy down the interest rate.

At barely over a year out from filing, even with rebuilding back to 680, you're still probably looking at sub-prime. Most especially since, if you walk, you're gonna have a Foreclosure listed on your Credit, between 1 and 2 years post filing.

Your credit would have faired better if you had walked when you filed BK. The Foreclosure and the BK would have been interpretted as 1 event in your financial history by prospective Lenders. Prospective Lenders will see you have 2 distinct negative events in your Credit history if you decide to let the house go and walk now.