Story time. Discharged Dec 2009. Mortgage loans (1st and 2nd) not reaffirmed. House value is less than what's owed on the 1st. We completely stopped paying the 2nd about 1 year before discharge (2nd has written us off, and it's IIB now anyways).
We decided to start the process to walk away around fall 2010. The 1st started sending us late notices, etc. Meanwhile, they offered a loan mod.. we did the loan mod process (although, foreclosure process had started to proceed its course). Just right before the auction sale date (point of no return?), our loan mod was approved.
In a nutshell, they just tacked on a ton of fees and such back into the principal. Mortgage payment was reduced by $300 for 5 years then would go up about $100 every year and then be fixed after 5 more years or something.
Well, after reading some of the other threads, it seems it would be better to go ahead and get the foreclosure done so the "clock" would start. And then as an option, after 3 years (post foreclosure), potentially purchase another home. But then again, I haven't read any concrete data if foreclosure get put on credit reports if the loan was IIB.
So, has anyone walked away "after" paying into their new "loan mod"? Reading into some details of the loan mod docs, it does say that the house could NOT be rented to anyone.. it would have to be our primary residence. Also, it noted that if we fail to make payments (this time around), they said they no longer have to give any notice of foreclosing on the property (the 1st time around, they gave us the 90 day notice before auction sale date).
Lastly, we want to downsize our home since we are on the "empty nest" path in the next few years.
Edit: Last time, from missing our 1st mortgage payment, the foreclosure process appears to take 6-7 months. Who knows how long it would take this second time around? My guess is it would only take about 3 months (just a guess).
We decided to start the process to walk away around fall 2010. The 1st started sending us late notices, etc. Meanwhile, they offered a loan mod.. we did the loan mod process (although, foreclosure process had started to proceed its course). Just right before the auction sale date (point of no return?), our loan mod was approved.
In a nutshell, they just tacked on a ton of fees and such back into the principal. Mortgage payment was reduced by $300 for 5 years then would go up about $100 every year and then be fixed after 5 more years or something.
Well, after reading some of the other threads, it seems it would be better to go ahead and get the foreclosure done so the "clock" would start. And then as an option, after 3 years (post foreclosure), potentially purchase another home. But then again, I haven't read any concrete data if foreclosure get put on credit reports if the loan was IIB.
So, has anyone walked away "after" paying into their new "loan mod"? Reading into some details of the loan mod docs, it does say that the house could NOT be rented to anyone.. it would have to be our primary residence. Also, it noted that if we fail to make payments (this time around), they said they no longer have to give any notice of foreclosing on the property (the 1st time around, they gave us the 90 day notice before auction sale date).
Lastly, we want to downsize our home since we are on the "empty nest" path in the next few years.
Edit: Last time, from missing our 1st mortgage payment, the foreclosure process appears to take 6-7 months. Who knows how long it would take this second time around? My guess is it would only take about 3 months (just a guess).