I'm wondering if any of the experts or experienced here know under which scenario one would have an easier time getting approved at the two-year time point? Realizing this is all hypothetical at this point.
Our home, with two mortgages, was discharged under our separate Ch. 7s. We retain and pay. Our second mortgage was forgiven under the DOJ mortgage settlement with BOA, so now we just pay on our first and are no longer underwater. We owe $94,000
It leaves me wondering -- would we be better off aggressively saving for a 20% or greater down payment on a new home or trying to get our current home's mortgage as low as possible to make us more appealing (assuming a lender would see we do not plan on just walking away from a home in which we have huge equity)? If I could put $40,000 toward something, would it benefit me most having it reduce our current mortgage down to $54K or to put $40,000 toward a new purchase? I was just thinking, perhaps erroneously, that the hang up with getting approved for a new mortgage when you occupy a discharged home is that you could potentially just abandon ship at the old home with no fear of recourse. Or is it more than that?
Our home, with two mortgages, was discharged under our separate Ch. 7s. We retain and pay. Our second mortgage was forgiven under the DOJ mortgage settlement with BOA, so now we just pay on our first and are no longer underwater. We owe $94,000
It leaves me wondering -- would we be better off aggressively saving for a 20% or greater down payment on a new home or trying to get our current home's mortgage as low as possible to make us more appealing (assuming a lender would see we do not plan on just walking away from a home in which we have huge equity)? If I could put $40,000 toward something, would it benefit me most having it reduce our current mortgage down to $54K or to put $40,000 toward a new purchase? I was just thinking, perhaps erroneously, that the hang up with getting approved for a new mortgage when you occupy a discharged home is that you could potentially just abandon ship at the old home with no fear of recourse. Or is it more than that?