Lawyer says, first BK13, then short-sale, then forclose if needed.

[Unsure14]

I told BK lawyer that I wanted to include the house in the BK, he said that it would be best to stop payments, file the 13, then stay in the house until it gets hot, about 6 months from now, and then short-sale it. Worse case scenerio is that you will foreclose.. But this way, you can stay in it, save some money and probably short-sale it.
Question? Does it automatically go into the BK when I list my creditors and don't reaffirm it.
- Will it show up as part of the BK, and I won't be sued etc.. or can they come after me for taxes, and the deficiency amount.
-What is the difference between including and not including. Does one allow the Federal homestead exemption and one does not?
I would rather include it with the BK if it might mean that I could be saddled with the deficiency later and have no way to get rid of it.
Or.... do you think he is saying stay there, lets see if we can short sale it in 6 months, and get you on your way. He did say he would need about 30 days to approve the purchase and sale agreement because of the CH 13.
He also said, that when it comes time to rent, he can write a letter that will satisfy most property management companies. He said they are confussed and think they will be included in the BK, but the letter will help us find a place to rent.. just wanted to pass this along.
Please let me know if I am taking on additonal risk by not foreclosing right up front.. I would like to live here, and try for a short sale, and if not foreclose. But I want it to be part of the BK, and not have anyone able to come after me..

[spell]

I'm not sure I'm following the logic of that plan exactly.
Do you qualify for a ch7?
Do you want to get out of the home?
You refer to homeowners exemptions (like you have equity) and short sale (like you don't have equity)?
What other debts are you trying to deal with?

[sick of debt]

until what gets hot?? hope he is not talking about the real estate market. you may want to consult other attorneys

[AngelinaCat]

I believe he means by 'getting hot', that the dunning phone calls, and harrassing letters for the lender becomes too much to bear.......

[Unsure14]

That for the comments,
He said to file the 13, even though I qualify for the 7. Reason being, he can use the Federal Homestead exemption. The unused portion of the homestead to protect cash. My house will either sell for what I owe, or go for less, making it a short sale. Stay in the home, until it gets hot, meaning the Mtg sends the notice of default.. if I do a short sale, then it is over, otherwise it will foreclose and then it is over. I was wondering if it does end up being foreclosed upon, does it show up as part of the BK. Does anyone know if this is true. I don't want to be saddled with a defiency amount in the case of a short sale, or taxes etc... after foreclosure, and it was after the BK?
Thanks,

[sick of debt]

oh, i get it. I think you will be liable for the remaining amount in a short sale, if it happens after you file.

[Flowers]

what is a short-sale?
do you have any equity, what % how much $

[Unsure14]

Spoke with attorney today. Since I filed all of my creditors, that includes the first and the second, then I don't reaffirm those, and the attorney sets up a payment plan based on what your rental will most likely cost. *** you actually make the first payment 30 days to the day that you filed, and before the 341*** Anyway, the plan obviously doesn't have your mtg payments in it, so the bank says "what's up", and the attorney gets you 5-6 months or longer to live in the house and sell it before the bank starts a foreclosure. If you can short sell it, great, and most likely you will be able to because the 2nd mtg knows that since you have filed BK the defeciency balance will be written off as part of the BK.
If it goes into foreclosure, it will be part of the BK and no one can ever come after you for any deficient amounts or taxes...
This will work well for us, because we don't want the house, but wanted to live here to save money, and get the BK filed. If we can short sell it, then it will help us to buy another home sooner.

[Unsure14]

Hello,
Thanks again for the comments.
I believe the home is in the BK, and since we are not re-affirming it, it will be foreclosed upon if we cannot get a short sale prior to this. This first month, the lawyer will be working with the two lenders to try to get us time before they foreclose on the home. The lawyer said that it usually works out to be 4-6 months. He said, at some point the lenders are going to want to see that the home is on the market, and will request it to be listed. He said that if the home sells short, or goes foreclosure, it is all part of the BK and that I will not be responsible for any dificiency. All we are doing, he said, is trying to buy some time from the lender, and try for a short sale first, foreclosure second.. if not, it is no different than if you just said forelcosure.. it is all wiped out in the BK.
The lawyer reallys seems like he knows his stuff. He came highly recommended, has a very friendly staff, and a couple para-legals, that are all very calm and knowledgeable. His rates were good, and he treats you like a realitive. He answered all my questions, and then some. I feel like he knows what he is doing.. so I am going to take my chances and file with him. I will keep ya posted.

[PoorGrammyinBK7]

Unsure - just wondered what state are you in? WE have a similar situation with 1st and 2nd and do not want to reaffirm but hope to stay in the house as long as possible...