How long to stay in the house...

[Tom_Mi]

Hi,
The "Strategy guide" says you can go CH7, surrender the house and do the whole long-term foreclosure deal, sitting in your house for a year or more.

This would certainly help us save for the next house more aggressively, have any of you done it?

-Would our credit continue to be eroded for that, vs the turnaround we'd get from moving immediately?

-Wouldn't creditor calls return at discharge?

[BassBoy]

Yes, it is a good idea to stay in the home for as long as you can. We didn't stay in our home long because we found a great place and decided to take it. We're glad we did because there has been nothing nice to rent since we've moved. We needed a home to rent instead of an apartment/condo because we have to energetic boys.....so.....we had to act.

During your free living, I would suggest you shop the homes/condos/apartments and etc. to get a feel for what you're up against. Some places are strict about having a BK while other places may not.

If you surrender the house and discharge your debts in a Ch.7, you shouldn't receive any creditor calls.

[bmrigs]

Hi,
The "Strategy guide" says you can go CH7, surrender the house and do the whole long-term foreclosure deal, sitting in your house for a year or more.

This would certainly help us save for the next house more aggressively, have any of you done it?

-Would our credit continue to be eroded for that, vs the turnaround we'd get from moving immediately?

-Wouldn't creditor calls return at discharge?

Milk that mortgage company for as long as you can.

[sivuh5]

A friend of mine stopped paying in April 07, received judicial foreclosure paperwork (in CT) with a court date of 9/11/07. Auction date for home to be sold was 5/17/08. No one showed at auction. He is still living in the house and the mortgage company (Countrywide) is still contacting him to try to work out a payment plan so he can keep the house (but he doesn't want it). He has not filed BK yet.

Sometimes it works in your favor to hang around for a while.

[Tom_Mi]

Thanks for the info. If the bank won't call/harrass me after filing, I might linger and save. It will lower the amount of time I need to rent and help me put more cash away for the smaller house I SHOULD have bought 6yrs ago.