Renting before home is foreclosed?

[berrymom31]

We are anticipating filing chapter 7 and are planning to let our house go and move to another town about 45 minutes away. We will wait 6 months to file because I am quitting my job so we can easily pass the means test (at least we'll try, still waiting for answer to previous post). We want to move before school starts in about a month...can we go ahead and move and rent a house we have found before we file? I guess we stop making house payments? We are current on the house now....We'd like to move asap to prepare our kids for school in new place and get settled. How will this look to a trustee? That we stop making mortgage payments and start renting a house somewhere else?

Sorry so many questions we are just trying to move quickly and do the right thing.

[Help!]

Quick thought - do you pay for daycare so that you can work? If so, you might come out ahead on the means test having DH quit one of his jobs to lower your income but keep yours so that you don't lose the daycare expense on the means test.

We moved to a rental four months before filing, quit paying on the mortgage about two months before filing. Our trustee didn't flinch, but we moved very far away from the home we were surrendering. Are you moving closer to work (yours or your husband's?)? That would definitely help as shortening a commute would save money on gas.

[hnhlvr]

Hi,
I read a few of your other posts. Based on the posts I wonder: is the house you found a rental home owned by your parents or is it being rented by a landlord/rental company?

I ask this because if you're renting from a landlord, it'd be in your best interest to move before your mortgage is late since, at this point, your credit isn't entirely ruined, and once you're late on the mortgage, you credit rating will tumble FAST (could be over 100 points the first month! Dh's went down 191 points in TWO months). If you're renting from your parents, it's not as big of a deal re: your credit. . . but rental companies expect a lot up front with bad credit.

DH and I walked from our home, but found a rental just two weeks before being late on our mortgage!

Good luck and don't pay any more mortgage pmts! Save what money you can under your mattress!!!

[berrymom31]

Actually yes, dh's parents have offered to buy a house that we are interested in in a town that is about the same distance from dh's job that we are now. This is a small town as opposed to the large school district we are in now. We are going to "rent" it from them, paying the mortgage until our credit is good enough to purchase it ourselves. The payment on this house will be less than $800 per month...such a relief. We'd like to save enough for a small...maybe $5000..down payment to go with it..and honestly thats two months worth of mortgage payments in this monster we live in now.

We live in an upscale lake neighborhood...and we long to get our kids away from this environment...the kids here are such brats...and the people, while they are nice..are so materialistic. This is why we are in the mess we are in. We just want to simplify! We found an old house..built in the 20's that has enough bedrooms and I think is charming, in the small town where dh and I met and grew up together. We are looking at two house now..one is only 99,000 and one is 124,000.....such a far cry from the 240,000 loan we have now. 40,000 of that is at 13% interest....

Thanks for the advice...I just can't wait till this is over..

Oh, and no, I am actually self employed and work at home...I go into an office for about 3 hours one day a week...so there is no daycare. The guy I work for is great and dh thinks he will offer to pay me under the table until the BK is over...and just take the hit on his taxes. I only made 22,000 last year...and I could cut that in 1/2 easily by taking on less projects. I hate to give this job up as it is the perfect job for a mom to have!!! But, in order to get out of all this debt I will gladly do it...

[hnhlvr]

Sounds like you have everything nicely worked out! It's good that you took the initiative and moved on to a better town for your family.

We desperately tried to keep our kids in the same school and found the only rental that was w/in a decent price range and now, here we are, still living among people in the income bracket (upper middle clases) which we were in (before DH lost his job and then got a lower paying one). We are the ones struggling to keep up this charade. I hate it!

Some of the moms of my sons' friends have husbands with cush corporate jobs so they stay at home and talk down about the other moms who do work. Here I am stuck in the middle being a SAHM who probably will go back to work. This is no joke in saying that the moms we currently hang out with only let their kids play with other kids who's moms stay home!!!

[berrymom31]

hnhlvr: I know what you mean....we are so tired of the people here! My husband is a tech in the medical field and makes decent money, but he works and works and works and works..takes call and works some more...just to make 1/3 as much as the salesmen we live around......it seems as though the harder you work, the less you make.......the people here judge you on what you drive and what you wear and the size of your diamond ring.....and at this point, I don't even care what they think of us walking away from all of this. We've lived here for 10 years trying to keep up with them, and well...it bankrupt us.

I so badly want to do what is right for my kids. I'm so torn over taking them away from all their friends at school and the neighborhood and moving them somewhere where they'll have higher values and be less judgmental. It seems like a no brainer...but this is the only home they have ever known.

Sorry to ramble on.......it's just so difficult a decision to make. We do want to do 7, but now were afraid that the decreased rent payment we would be making in comparason to the high mortgage payment we had will make us fail the means test! Were less than 10,000 per year over the median income....and I'm not putting my kids through this if we have to end up filing 13 anyway...school starts in less than a month...and I just don't know what to do!!!!

[hnhlvr]

Your income IS over the means, so I'd say it'd be best if your DH quit his second job and you were paid under the table. You'd be under your means for the time being. Possibly your DH can take a leave-of-absense so he can get his job back? (You may find that he doesn't even need the second job if you keep yours and revert back to paying taxes after filing because you won't have all the credit card payments and cost of two mortgages.)

Moving away from your house is the best bet. The location of the house we walked from is oddly placed on a private drive, so it's not clearly visable from the street that the house is empty without a sale sign on it, but I get the feeling that one of the mommy friends drove by it because we've Craig's Listed a few items and she's asked if they've sold yet, however, she's never asked about the house. She mentioned another home being empty w/out a sign, so I just wonder how nosey she may be about my house.

So for you, if you move, nobody will ever have to know about the foreclosure. You can tell them you sold your house and they won't second guess that and you won't take the chance that your kids will be humiliated by that.

[sarasota7]

What would you do with 3.6 million nickels?

Why pay rent? Could your inlaws legally give you a 10 yr mortgage on that 100k home, and would that stand up in court? Your inlaws get a ten year at 5% and sell it to you using a ten year at 10%. Your payment would only be around 1400 a month. They would of course have to pay taxes on the profit from the loan. There has to be a way to do this. I'm pretty sure all the owner financing houses out there aren't owned outright so there has to be a legal way to do this. You might be able to write the interest off your taxes and get all the benefits of home ownership within your state.

Check out www.virginmoneyus.com

Please ask a lawyer because I'm a BK virgin, rather dumb, and probably wrong as well.Wanted By


FBI Most wanted


On December 17, 2004, Angel Ricardo Mendoza was working as a driver for a trucking company in Miami, Florida, when he picked up $180,000 worth of nickels from the Federal Reserve Bank (FRB) of East Rutherford, New Jersey. The nickels were to be delivered to the FRB of New Orleans, Louisiana, on December 20, 2004, but never arrived there. Mendoza's company last heard from him on the morning of December 20, 2004, when he reported to be in Tallahassee, Florida. Then, on December 21, 2004, Mendoza's tractor and trailer were located empty in Fort Pierce, Florida. Since that time, most of the money has been located, however, Mendoza's whereabouts remain unknown.

On February 18, 2005, Mendoza was indicted by a Grand Jury for the United States District Court, Southern District of Florida, on conspiracy, embezzlement and theft related charges, and a federal warrant was issued for his arrest.

[itneverends]

The guy I work for is great and dh thinks he will offer to pay me under the table until the BK is over...and just take the hit on his taxes.

This is a kind of a dangerous strategy to take and I would be very careful. First, this would require that you be less than honest in your BK filing, never a good thing. Second, you better make darn sure you are going to get the Ch 7 if you go this route. If you end up having togo Ch 13 and are required to file tax returns it will catch up with you anyway, so why take the chance? Not to mention that you now have made this "great" guy a party to this at this point.

I think hiding sources of income is about the worst thing you can do as far as running afoul of the BK court.

[Help!]

This is a kind of a dangerous strategy to take and I would be very careful. First, this would require that you be less than honest in your BK filing, never a good thing. Second, you better make darn sure you are going to get the Ch 7 if you go this route. If you end up having togo Ch 13 and are required to file tax returns it will catch up with you anyway, so why take the chance? Not to mention that you now have made this "great" guy a party to this at this point.

I think hiding sources of income is about the worst thing you can do as far as running afoul of the BK court.

I'm with you on this one. There's always a chance that someone (case Trustee, UST, IRS) will look under that table!

[berrymom31]

Yes, I have decided not to accept that situation if offered. I'm a contractor and I'll just let him know that I'd like to come back after this is over if he still has the work, but if not...oh well. This is all about change right? Thats what I need to accept.

I'm excited about starting a new debt, stress free life! I've lived with the stress of this house payment and these bills for so long and there is something so re-freshing about deciding to stop it all!!!

I just want it to be over and discharged! I think the day this happens I'm going to run down the street screaming!!lol