did anyone give home up?

[B65]

really hope someone knows...
341 next week
if we dont pay any more payments on the house will this hinder our chapter 7? will the mortgage company notify the trustee, ie..now you are not paying the mortgage we will make it a 13?
if it got made a 13 what happens to missed payments?


you have to have not pay for 90 days before they start foreclosure proceedings... will that 90 days start from dec or do they have to wait until my discharge (maybe early feb) before they can start counting as it was in bankruptcy...?

then after 90 days how long after should I expect to stay another 90 days?
thanks for all and any answers....

[Tbornetun]

The amount of time you can stay rent free after the sheriff's sale date varies from state to state.

If you haven't missed a payment yet and your 341 is next week, they will not begin the foreclosure process until around the time of your discharge. If you plan on giving up the house, stop making payments now. By the time you are considered in default, your BK will already be discharged.

[B65]

thanks Can you look at this?

what does this mean?

is day 1 the day after I am 90 days late? I want to be out before I have to, but would like to get some money saved.....



Day 1-15 Day 30-75 Day 90-150 Day 180
Title search ordered; Complaint and Summons issued

Day 90-150
Title search ordered; Complaint and Summons issued Service completed, Complaint filed on return date; Defaults entered, case claimed for Judgment


90-150
Title search ordered; Complaint and Summons issued Service completed, Complaint filed on return date; Defaults entered, case claimed for Judgment Judgment entered; Title vests in Strict Foreclosure or Sale held in Foreclosure by Sale

Day 180 sale confirmed

[Tbornetun]

What I am saying is that you won't be in default until you are 3 months behind. Whatever the process is for your state won't begin until that point. If your 341 is next week, you are current now, you won't be in default and they won't even begin the foreclosure process until a month after your discharge.

It will not push it to a 13, you are still in your home and your mortgage payment is used on your schedules regardless of whether or not you are making the payment.

[B65]

is it worth me trying to sell it

it looks like I will have at least 6 months? What would be the benefits of it selling, (can i sell while I am not paying and it is in foreclosure?)
a smaller ding on credit report and neigbors not knowing that's about all i can think of.
Hubby really wants to foreclose as the payment is too high for us to save to get back on our feet, I am scared as I have an 8 yr old, just hope we can find something nice to rent......

B

[StartingOver08]

There are no benefits to you if you sell the house short of its mortgage. It will not help your credit report to try to do a short sale. The short sale and the foreclosure have the exact same impact on your credit. The BK has a bigger impact.

With all the foreclosures going on now, the process is taking a very, very long time. Stay in your home until you have to leave. Save a much as you can in a CH 13, or even in a CH 7 for that matter. You will be able to find a rental. (I am a real estate agent, and I have no problem getting people places after they have filed. You just need to be upfront with your agent and maybe get one that has also filed BK so they understand completely!)

[B65]

Hi

I was only going to try to sell it for the mortgage we owe and the comission other than that I would not accept lower offers, figure it was worth a try to do that.... Thanks so much for the reply I need all the ehlp i can get LOL!

B

[B65]

ps

bankruptcy has a bigger impact than foreclosure, good to know i thought it was the other way around...

[mintz]

Can't you explain your situation with the bank and as them for a better interest rate or a reduced mortgage. Or will they basically just say the heck with you a foreclose?

[B65]

well

I will try that too... Hubby and I decided how much we want to pay on housing, we went by the guidelines we found on line, we are determined to never need a credit card again, so i figure we will go through the foreclosure process, try to sell it for what we owe at the same time and tell the bank we want a payment of 1800 per month if you can swing that with modifications go for it... if not... goodbye.

sound like a plan?

B

[mintz]

I will pray for you.

[B65]

thankyou

[StartingOver08]

Can't you explain your situation with the bank and as them for a better interest rate or a reduced mortgage. Or will they basically just say the heck with you a foreclose?

You can try this - most likely it will not do anything for you.

The bank/lender makes more money off a foreclosure than they do if the modify the loan. Even though the foreclosed price (bank owned) is usually much less than the same house that sold down the street in a short sale the bank receives the mortgage insurance (MI) payout ONLY in the case of a foreclosure (not in the case of a short sale). PLUS the bank then ownes the asset - so they can sell it. The MI payment is from 19% to 35% of the original mortgage amount. However, in order to get the payout from the MI company, the bank has to prove xxx days on the market to obtain a short sale. (That is why you see so many short sales offered - the bank requires the house to be on the market, but there is no real intention of actually approving the short sale). In our area, only 4% to 7% of all listed short sales actually close. The bank does not approve the rest of them - or they ask the seller to sign a note for a huge amount payable over the next 10 to 30 yrs. Naturally most sellers will not bind themselves to the impossible for the next 10 to 30 years - even at zero percent interest!!!

As to a modification, once again, the bank/lender will only do the mod if it generates more $$$ for their bottom line than a foreclosure.

What they will do, is ask you to provide all your paperwork (so they can see where your assets, if any, are located). They will ask for bunches of up front fees....then take forever to say no or come back with a modification that is no better than what you have in place now. Or, they may ask for more fees again...you get the idea. Very, Very few modifications are getting through that are an actual benefit to the HOMEOWNER.