I want to move and am current on my mortgage

[Uncle]

Hello members of the forum,

My chapter 7 was discharged last October. I did not reaffirm my mortgage but have been current on the payments. I want to know if anyone knows how I might go about moving in a few years. I would like to move in 3-4 years.

Do I have to sell my house or can I give it to the bank? Let's go with the assumption that I will have reasonably good credit for someone who went through bankruptcy.

[HHM]

If your intention is to buy a home in your new location, then giving the home back to the bank will not fly. The new mortgage lender will want/need to know how you will dispose of the current home. As such, if you walk away either via foreclosure or short sale, you probably (almost certainly) won't be able to get a mortgage regardless of your credit. Granted, you are not personally liable for the current mortgage debt, but if you are upside down in the house, you will not likely be able to buy for some time after you dispose of the house.

So, the only option if your goal is to "buy" when you move is to sell the house and be able to pay the ALL the mortgages in full. If that is not possible, then you will be renting for at least 3 years.

[NoMoreCards]

Another option, would be to purchase a land contract or pay cash. There are several nice homes and foreclosures on the market for very cheap. You could buy one of those for cash, and fix it up. This might mean not making your current house payment and stashing the money. It might include doing a 401K loan (if you have that option) or even being a bit creative, however several people have done this as well. You just can't get a mortgage, however there are other ways to purchase a house. Be creative, plan it out and work to make it happen. There are other options without a mortgage.

[bcohen]

If your intention is to buy a home in your new location, then giving the home back to the bank will not fly. The new mortgage lender will want/need to know how you will dispose of the current home. As such, if you walk away either via foreclosure or short sale, you probably (almost certainly) won't be able to get a mortgage regardless of your credit. Granted, you are not personally liable for the current mortgage debt, but if you are upside down in the house, you will not likely be able to buy for some time after you dispose of the house.

So, the only option if your goal is to "buy" when you move is to sell the house and be able to pay the ALL the mortgages in full. If that is not possible, then you will be renting for at least 3 years.

What if he said that he was planning to rent out the existing house? Could he say that, and then qualify for a new mortgage, and then default/walk away from the existing house later?

[marcer]

What if he said that he was planning to rent out the existing house? Could he say that, and then qualify for a new mortgage, and then default/walk away from the existing house later?

Exactly why we are in the mess we are in now...Buy and bail will not be an option. You will not be able to purchase a new home without qualifying with both payments if the following apply: You currently have less than 30% equity in the home...determined by an appraisal from the lender. You do not have 6 months reserves for both payments---if no equity in home.

Another thing you will want to look for...and consult with your bk attorney. How is the mortgage held now. I do not recall the name....hence consult with attorney..but their are some bk provisions where the lender will continue accepting payments on the mortgage and will allow you to remain in the home for as long as payments are current, but where you are under no obligation to make and which can be terminated at anytime by you. These types of provisions have caused many borrowers great grief. They are unable to refinance these properties and I've known one case where the property could not be sold due to titling issues. On the other hand...if your mortgage has such a provision post bk...it may be easier for you to walk away. I doubt you would be able to purchase another home though..but maybe, based on bk . Check with attorney and do not take advise from anyone recommending you walk to try to purchase another home. Just my opinon

[HHM]

What if he said that he was planning to rent out the existing house? Could he say that, and then qualify for a new mortgage, and then default/walk away from the existing house later?

Nope, not that easy, Marcer is correct, they will need to "qualify" with both payments taken into consideration (unlikely). You will need serious savings and a signed lease agreement. The underwriters are not stupid, they are not going to allow a buy and bail.