?'s on House value and family size

[fedupw/ccdebt]

OK...I have done some searching thru old posts but haven't really found an answer to my questions, so bear with me... We live in Indiana (Hamilton County...wealthy county but we are the "proud few" that live in the "poor" section).

Question #1 has to do with how the size of a family is determined. I know that sounds sort of silly, but it could make a real difference in our case. I have two sons that currently live with my wife and I. One is 16 and will be Jr. in HS in the fall... The other is 20 and lives at home with us also. He dropped out of school a year and a half ago due to depression and it has been a struggle since then to get things "moving in the right direction"...although it is beginning to happen, slowly. He just started a job, around 40 hours a week, bringing home around $1500 a month. We still cover his medical insurance, medication, doctor visits, etc... We are encouraging him to save his money towards going back to school and have basically told him he is welcome to stay with us as long as he wants so he can save up.

Since he is over 18 and is not a student is he not considered part of the "family" when determining median income...or since he is still living with us and we are covering most of his expenses will that enable us to include him? Not sure if any of that makes sense, but I hope so...

Question #2 has to do with the value of our home. Refinanced it in 1998 for $98,000...currently owe around $86,000. Our current tax assessment has it at $107,800. As is, there is no way it would sell for that...needs work on the roof, new gutters, new windows, the detached garage is crap and basically needs to be replaced, I am sure the wiring and pipes need to be worked on...if not replaced. Sort of scared to even talk about all that since I am sure I am testing the Gods of Karma. We also have a 2nd on it with about $21,000 left. Went thru a refinancing - consolidation phase back in '98 which obviously didn't work well...

While the home doesn't sound like much, we have lived here since 1990...basically the only home my kids have known. We want to keep it, if at all possible. We live in Indiana and after looking at exemptions allowed, it appears each filer gets $15,000 towards property...at least that is what looks like. It is sort of confusing, actually, how it is worded...

Sorry to be so long winded, but the more I investigate the more questions I have...which I hope is normal.

[jal1129]

As for question #1, the general rule is if you claim them as a dependant on your taxes you can claim them as a dependant for bk. Someone may come along who knows more details, but that is the general guideline.

[nosrus77]

I think (double check with an attorney) that the exemption in Indiana is $7,500 per filer, or $15,000 joint. May be better for you to get a "drive by" appraisal (figure $250 or so) to prove that you're fine. Still sounds like you'd be under the exeption, though.

I live in Southern Indiana - nice to chat with a fellow Hoosier. Good luck with your filing, and I hope all goes well.

filed 6/11/07
341 - 7/27/07
last day to object 9/25/07

[fedupw/ccdebt]

[SinkingFast]

As for question #1, the general rule is if you claim them as a dependant on your taxes you can claim them as a dependant for bk. Someone may come along who knows more details, but that is the general guideline.

That's pretty much the way it worked in our Court here. Northern District Indiana.

As to the value of the house,........... Call a couple Real Estate Agents. Act like you're thinking of selling. Get them to run a "Competitive Market Analysis" or whatever Realtors in your area call it.

The Realtors will pull Comps nearby that have recently sold and closed. They'll do a quick walk thru of your house. Take into consideration the condition of your property. They'll give you a sheet detailing asking price, costs to sell, and your net proceeds or equity, after everything is paid. You'll know where you stand as far as your equity is concerned.

[fedupw/ccdebt]

Thanks for the replies...

Sinking, since you are from Indiana, can you tell me what your lawyer said as far as exemptions are concerned? Did you file single or jointly? Was it $7500 single and $15000 jointly, or $15000 single and $30000 jointly for housing exemption?

Anyone else from Indiana that can chime in on the exemption figure issue?

[SinkingFast]

We moved within 2 years prior to filing so we used our Old State's Exemptions.

I did find this for you at an IN BK attny's website:

Real or personal property used as residence up to an amount of $15,000.

http://www.bjosephdavis.com/indiana-...w-1167639.html

[fedupw/ccdebt]

Thanks for the information Sinking...that does help some. My main concern now (among about 1,000 others) is the whole reaffirmation of the house thing... I assume that the bank that holds the loan also holds all the cards on this. By that I mean, they don't have to reaffirm if they don't want to, do they?

While we are current on our mortgage and always have been, BoA has our mortgage and they also have 2 of our CC's that will hopefully be "wiped out"... I am wondering if they are going to play nice and work with us on this or "hold a grudge", so to speak. Possibly even push us into a 13.

This all makes me sick. Thanks again for the info.

[Liaah]

We also have a loan with the same bank as our mortgage. I was worried about the same thing. We were told banks don't make a fuss about defaulting on CC's or unsecured loans through them even though you have a mortgage you are keeping with them. Of course we haven't filed yet, but I am confident in my Attorney and his paralegal.

My Attorney was an Indiana trustee for 8 years, so I am positive he knows his stuff.

Goodluck!

[fedupw/ccdebt]

Liaah...thanks for the reply also. Your attorney that was the trustee, is that the same guy that you sent me the website link to? If so, I am sure he has alot of insight to the whole process. That has got to give you a good feeling about him knowing his stuff.

I may see about contacting his office and see about setting up a consult. Thanks again,
Fed

[SinkingFast]

BoA is a big bank. That's for sure. But chances are that BoA doesn't physically hold your mortgage themselves. CountryWide is one of the largest Mortgage Lenders in the USA and they don't hold all of their own mortgages.

Many mortgage Lenders simply issue the note, turn around and bundle it up with a bunch of other mortgages, and sell mortgage bundles on the Secondary Market. BoA continues servicing your loan so you continue to deal with the same people and don't know the difference.

Most likely, BoA services your mortgage on behalf of an Investor. As long as the Investor continues to get paid, the Investor could care less you defaulted on a couple of CC's with BoA. And BoA will be happy to continue to draw the "Loan Servicing Fee".

[Liaah]

Yeah same guy.

He seems like a pretty no nonsense kind of guy, but that's ok with me. Just glad he is on my side.