Here's the scoop. Thank God it's not us. Been down that road 2+ yrs. ago with a BK, but never a foreclosure. I know of a couple who did the 'buy and bail' due to medical reasons (as someone put it) and have been trying to sell the house they bailed on. The realtor said short sale, the atty. said foreclosure. So they have raised the price of the house to a ridiculous amt. I actually have to find out what their bit*chy realtor had to say. I basically told her she was committing FRAUD to her face mos. ago. She didn't like that. LOL The atty. did say he was surprised they were able to get another mortgage while still carrying a mortgage, but I guess those medical necessity letter's have more weight, and banks are desperate. So one bank is screwing another bank over. Oh isn't the economy wonderful.
So in their situation, the wife wants to file BK. They probably wouldn't qualify for a ch7, so they'd do a 13. They have $36K in unsecured debt. Instead, the husband refuses to file and is just going to wait it out. They are late on their 1st and 2nd mortgages with home #1. Home #2, is their new home, so of course they are paying on that. We are all thinking that with time, the husband will see the light and realize that paying off $36K, which will never happen at their age, and that he'll agree to file. But as the atty. said, it would be unfortunate, because all that time will have gone by and money wasted on the unsecured creditors.
Now I think it's great that he doesn't want to file and pay off their debt, but they are also foreclosing on a home. I don't think the husband realizes the negative impact the foreclosure will have on their credit score. Is that true? So shouldn't they just file the ch13 and be done with it? Sounds logical to me.
Or the wife could file, but the line of credit (the 2nd mortgage bal. is $17K---on top of their $36K in unsecured debt) is in the husbands name (too) and so the atty believes, but not for sure, that they could come after the husband. We live in a state where you can file seperately (forget the 'name'..commonwealth?) Anyway, what do you guys think?
How neg. is the foreclosure going to be? And is it true that the bank will forgive the 2nd mortgage of $17K if it forecloses? Last week we all thought that the 2nd mortgage would turn into an unsecured debt and so they'd be responsible---wages could be garnished, etc.
Glad this isn't me....what a nightmare. I feel for anyone going thru this. Hang in there!!!
Happy to be a new homeowner...
ch 7 discharged 2/14/07
we lucked out and qualified for the USDA Rural Home Development Loan
FHA, 6.5% interest, no PMI, 30 yr, no points
So in their situation, the wife wants to file BK. They probably wouldn't qualify for a ch7, so they'd do a 13. They have $36K in unsecured debt. Instead, the husband refuses to file and is just going to wait it out. They are late on their 1st and 2nd mortgages with home #1. Home #2, is their new home, so of course they are paying on that. We are all thinking that with time, the husband will see the light and realize that paying off $36K, which will never happen at their age, and that he'll agree to file. But as the atty. said, it would be unfortunate, because all that time will have gone by and money wasted on the unsecured creditors.
Now I think it's great that he doesn't want to file and pay off their debt, but they are also foreclosing on a home. I don't think the husband realizes the negative impact the foreclosure will have on their credit score. Is that true? So shouldn't they just file the ch13 and be done with it? Sounds logical to me.
Or the wife could file, but the line of credit (the 2nd mortgage bal. is $17K---on top of their $36K in unsecured debt) is in the husbands name (too) and so the atty believes, but not for sure, that they could come after the husband. We live in a state where you can file seperately (forget the 'name'..commonwealth?) Anyway, what do you guys think?
How neg. is the foreclosure going to be? And is it true that the bank will forgive the 2nd mortgage of $17K if it forecloses? Last week we all thought that the 2nd mortgage would turn into an unsecured debt and so they'd be responsible---wages could be garnished, etc.
Glad this isn't me....what a nightmare. I feel for anyone going thru this. Hang in there!!!
Happy to be a new homeowner...
ch 7 discharged 2/14/07
we lucked out and qualified for the USDA Rural Home Development Loan
FHA, 6.5% interest, no PMI, 30 yr, no points
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