Mortgages and not reaffirming...

[reallynervous]

Can anyone tell me how this shows up on your credit report?

Here is why I am asking... Our mortgage payments (first and second) are pretty high. We are not reaffirming either of them as we currently owe a little more than the house is worth and it not being advisable to do so.

I would like to find somewhere to rent and let the house go. Dh disagrees and wants us to stay here. We are complicated in finding a place to live due to our pets and also our SN son. He can become really loud at times and living in close proximity (as with an apartment, etc) would likely be difficult.

However, dh has had 3 periods of having months off work in the past 5 years due to health issues. I would like us to try to find something where we can put more money away to cover more time off, etc.. We also are going to be running into costs for home repairs that have been put off, etc..

I am wondering if there is a difference in how it would affect our credit report were we to let the house go now vs a year or two from now? Does it look better to be done as close to when you file BK as possible?

I really do like our house and would like to stay here if we can make it. I am just nervous that these health issues might continue to make it a challenge for us to get ahead.

Thanks for any info you can share,
reallynervous

[BKParalegal]

I am confused when you say "let the house go now or wait a year or 2 from now". If you keep the hosue through the BK and then a year or 2 later let it go. You will have a BK on your credit and then a year or 2 later you will have a Foreclosure. This will hurt whatever credit score you have built up during that time. An attorney can guide you best on staying in your home for as long as you can for free prior to and after filing bk. My record is 13 months for a client without having to pay the mortgage.

Good Luck

[reallynervous]

Yes, this is my concern. I feel as if we are going to end up not being able to keep the house at some point down the road, then we should get out now as we are doing the BK rather than it reaffecting our credit after we start to rebuild.

I think I am just really gunshy after all these periods off work. Dh feels we can manage the payments fine. They are below the recommended guidelines of what % your mortgage should be, etc but of course that is based upon dh's income when he is working, not off on disability.

Thank you for your response. That does answer what I wanted to know.

reallynervous