Oh No Foreclosure after BK

[forget]

Hello everyone
We were discharged in 2005 chapter 7 .. We regret not putting our home in this bk Big mistake. Now 2 years later we are in over our heads due to the arm .. we were able to refinance into a 30 year fixed but still a higher rate than we prefer. We are at our budget in this home .. but had no choice but refi in may due to the arm. Now we still are at our limit have no money for nothing. Someone gave me this idea and just wanted your oppinion Please help me..
They said to let this home go on foreclosure but before it hits 30 days to get an apartment and rent and when the foreclosure hits go to a credit repair that will remove this foreclsoure ??? Has anyone tried a credit repair to remove a foreclosure ? Me ad my husband are on the verge of a divorce of this money situation .. We fight every day .. What would you do ? My husband thinks there must be a goverment program to help us get a lower rate or fix up the house to sell it example new carpets cabinets. I told him I have never heard of such a thing . Anyone please give us your advice desperatly needed ..
Thanks

[STEPH1079]

FHA has a loan out called FHA Secure.
Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing.

To qualify for FHASecure, eligible homeowners must meet the following five criteria:

A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
Interest rates must have or will reset between June 2005 and December 2009;
Three percent cash or equity in the home;
A sustained history of employment; and
Sufficient income to make the mortgage payment.

Here's the link for more info: http://www.fha.gov/press/2007-08-31release.cfm

[STEPH1079]

Here's another link with great info:

http://www.fha.gov/foreclosure/index.cfm

[forget]

Thanks for the great site .. Does this help with a convential loan? my mortgage is citi mortgage and they are not willing to help .. since we pay by the 30th of every month . I guess i have to just stop paying to get help . My utilities are so past due i should really be paying them first but I am still trying to hang on to no lae payments .. no equity or i would have refinaced again. I will have to check out the other numbers on the site.
Thanks again

[MTG_BANKER_OH]

FHA has a loan out called FHA Secure.
Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing.

To qualify for FHASecure, eligible homeowners must meet the following five criteria:

A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
Interest rates must have or will reset between June 2005 and December 2009;
Three percent cash or equity in the home;
A sustained history of employment; and
Sufficient income to make the mortgage payment.

Here's the link for more info: http://www.fha.gov/press/2007-08-31release.cfm

The catch is you have to have an ARM loan, but if not you can still refinance into a FHA loan if you have 3% equity and clean credit for a year, and can document your income. It is hard to say with your current situation whether you can refinance into a FHA loan did your other lender look into this for you?

[forget]

I dont think the other lender looked into it we were only 1.5 year out of BK 7 . With FHA loans the closing fees I would hink would be high . My mortgage company now says they show my home at 138,000 value but we owe about 125,800 with the closing fees from about 5 months ago. So I wish I could just get it down to 700.00 a month that is where we need to be seems like that will not happen . This Jan will be two year out of BK7 but to refi again and adding closing fees again nobody wants to do a 95 ltv . I think that is what it is . Well if you think FHA loan will help with a refi maybe the loan officer could not do that in may beacuse of not being out of bk 7 two years ?? I had someone tell me we should get a invest home pull money out pay off the credit cards and live in thae investment home and rent our home that we live in now. So if that is possible that may be a good idea . Please let me know what you think. Thanks