I see this mentioned quite a bit, but have not seen a post where someone actually gave the house to the lender to satisfy the debt. How rare is this? Has anyone on this board done it? I don't want to speak to Countrywide quite yet and raise the red flag (our November payment is the first we are missing), until I have more info on our chances.
Has Countrywide been agreeable to Deed in Lieu? Are they looking for a certain loan to market value? We live in Florida. Does that qualify or disqualify us from this option? Do you have to be current with your payments or a number of payments late? Etc. on the questions. Any info is appreciated.
Those are basically my questions. Below is our situation, if the details would help. I know this is long, so stop here to avoid reading a long post.
My wife and I will file Ch7 in 2 to 3 months. The exemptions in Florida are bad (unless you have a lot of equity in your house). Each person gets $1000 in personal property if they own a home at time of filing.(and a separate $1000 each in a car) "Surrendering" the home and including the mortgage in Bk has no effect on this. If you do not own a home you get $4000 per person. So, as our lawyer told us, if you own a home and are upside down or close to it, you are actually getting penalized. Now this is normally offset by the fact that we could live in our house another 6 months mortgage free before foreclosure. But I recently took a new job and currently I drive 100+ miles round trip to work. We could move and rent closer and drive less than 5 roundtrip. So, renting sooner is mostly offset by extra gas and $6 tolls/day and car wear and tear that we would save. So the net would probably only be $300 to $400 per month more. (if that, because my wife could start looking for work right away in the new location). So to make a long story longer, we would benefit more from the $6000 extra in personal property (we would probably be an asset case even with). Thanks for listening. Any info on the "deed in lieu of" or problems with our reasoning would be appreciated.
Has Countrywide been agreeable to Deed in Lieu? Are they looking for a certain loan to market value? We live in Florida. Does that qualify or disqualify us from this option? Do you have to be current with your payments or a number of payments late? Etc. on the questions. Any info is appreciated.
Those are basically my questions. Below is our situation, if the details would help. I know this is long, so stop here to avoid reading a long post.
My wife and I will file Ch7 in 2 to 3 months. The exemptions in Florida are bad (unless you have a lot of equity in your house). Each person gets $1000 in personal property if they own a home at time of filing.(and a separate $1000 each in a car) "Surrendering" the home and including the mortgage in Bk has no effect on this. If you do not own a home you get $4000 per person. So, as our lawyer told us, if you own a home and are upside down or close to it, you are actually getting penalized. Now this is normally offset by the fact that we could live in our house another 6 months mortgage free before foreclosure. But I recently took a new job and currently I drive 100+ miles round trip to work. We could move and rent closer and drive less than 5 roundtrip. So, renting sooner is mostly offset by extra gas and $6 tolls/day and car wear and tear that we would save. So the net would probably only be $300 to $400 per month more. (if that, because my wife could start looking for work right away in the new location). So to make a long story longer, we would benefit more from the $6000 extra in personal property (we would probably be an asset case even with). Thanks for listening. Any info on the "deed in lieu of" or problems with our reasoning would be appreciated.
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