Foreclosure Questions

[jleonardis]

My husband and I filed for chapter 13 in June of this year. We had our meeting with no objections. We refinanced our home a year ago and got one of those interest only ARMs and borrowed from our equity. Not the smartest move on our part. We cannot afford the payment on this house so, we decided to walk away and let it foreclose. Our home is worth less than what we owe so, selling is not an option. This is heartbreaking and really difficult for my husband and I but we realize that in order for us to get ahead we have to. I am just wandering about the timeframe of when we will have to be out of here. Our first is with CitiMortgage and our second is with Chase. We live in Northern California. We haven't paid a payment since May. The June payment was included in the BK. We would like to stay as long as possible to save money to move. I am worried about finding a rental with our credit. I have been told that if we are upfront about our situation that most landlords have no problem with it if we can verify income and give them a little extra upfront to ease their mind about renting to us. Is that true? Im so stressed about all of this. I have three kids that I am worried about relocating. Hoping someone can ease my mind.

Thanks in advance,

Jessica

[lrprn]

Hi Jessica - welcome to BK Forum!

I am just wandering about the timeframe of when we will have to be out of here. Our first is with CitiMortgage and our second is with Chase. We live in Northern California.

Here's a link that explains what to expect when you surrender a house to foreclosure in California - http://www.realtytrac.com/foreclosur...ate=California

Looks like how long you have depends on whether your mortgage lender goes the court or non-court route to do the foreclosure. If they decide not to go through court, average time you have is about four months. If they decide to go through court, it could be longer.

Your lawyer is probably very familiar with foreclosures in CA. What advice has he/she given about staying in the house and not paying your mortgage to get a little saved up to move out?

I have been told that if we are upfront about our situation that most landlords have no problem with it if we can verify income and give them a little extra upfront to ease their mind about renting to us. Is that true?

Right now with the housing glut, it's definitely a renter's market. Assuming with 3 kids you may be thinking about renting a house, that's can be easier than getting into some of the big apartment complexes that check your credit reports.

Members here have said they had the best luck renting when they didn't volunteer about their bankruptcy, but also didnt' lie if asked. Feel your way along....if the potential landlord seems sympathetic, then share your story. There's no way to tell until you start looking who will understand your situation and overlook the bankruptcy. I think you'll be surprised at how many people will give you the break you need.

[SinkingFast]

Our Landlord is a Realtor who invests in rental properties. She and her Husband, together with another partner, own a Construction Company, Rental Properties, and a Real Estate Office.

Our house was out of State and had been on the market for a year. We told our Landlord about the Foreclosure but not about the pending BK. Being a Realtor, she understood all about Foreclosure. Didn't bat an eyelash and took us as tenants.

If you go to bigger apartment complexes, you'll probably run into the Credit Check situation. At some of the larger apartment complexes, the leasing Manager has the latitude to make case by case decisions. Others have set guidelines.

Renting from an individual that owns a rental property or 2 can cause problems too. One of our Members, was actually forced to vacate when their Landlord found out they were going to file BK. That "eviction" really worked out for their family. They wound up with a bigger house that costs less per month in rent and utilities.

As Lrprn suggested,........... You'll just have to feel your way along. Decide at the time what you tell to which Landlord in any given situation. You may get lucky right away, or it may take a while, but you'll find some place to live.