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    Everything is hinging on Mortgage Co.

    Everything is so confusing....(sorry it's a little lengthy)

    Met with lawyer today..we retained him back in Oct/Nov 2008. He said we are just over the median income by around $2500-3000/yr. We do qualify for CH7 though. We are 2 months late on HELOC and 1 month late on 1st mortgage. Our first mortgage is in the modification process. Paperwork is in and was told by Chase that it's in "the second phase" and "it might be a few weeks but that it will go to underwriting soon." It is a WAMU owned loan. So it's a waiting game. If they offer us a decent modification the lawyer thinks we should file a CH 13 and lien strip the HELOC and pay for the new mod. payment (if its affordable).

    If the modification isn't suitable then we file CH 7 and include the house and let it foreclose..what happens to the HELOC..I don't know. We can't afford to pay the mortgage at the current rate anymore.

    Now if we are sued by a credit card co. we have to go ahead and file.

    Also...we have over 100k in credit card debt (been brewing for the past 15 yrs) so he thinks the UST will probably scrutinize this. Said we may have to give statements for the past year. There were living expenses, a vacation, toys, Christmas, etc. kids clothes and last October my DH bought me a $4,000 three stone anniversary ring and band for our 15th anniversary. Paid with a Mastercard. I had my original wedding ring made into a necklace. Wedding and engagement rings are exempt in VA. WIll there be a problem if he sees this charge and make me give up my rings? These are the rings that I now wear all the time as my wedding rings. We probably won't file for another 2-3 months.

    Another variable (we seems to have many) is I have been offered a job (which is nice considering I have been looking since Aug.08), but we can maybe get by with a CH7 and add on to the groceries and entertainment to cover a PT salary, BUT it has the possibility to go FT and that would force us into a CH13. I also DO NOT want to work for this company FT. I've worked there before..don't like the owner that much. It's very small and no A/C just 1 or 2 wall units. I don't want the stress of managing an office. Problem is if we are in a CH 13 the lawyer said I couldn't quit a FT job once I am in the Ch 13. Would I be able to quit AFTER I find another FT job somewhere else?

    Sorry it's long.

    Thanks

    He also we may have to get rid of our timeshare, so to use up the points before we file as much as we can. Can we do that?
    Last edited by 2muchinDebt; 06-23-2009, 03:21 PM. Reason: forgot

    #2
    DH bought the ring after you retained the lawyer?
    Ask your lawyer about that.
    Chapter 7 07/30/2008
    341 09/17/2008
    Discharge 11/21/2008

    Comment


      #3
      No before we retained him.

      Comment


        #4
        Originally posted by 2muchinDebt View Post

        Also...we have over 100k in credit card debt (been brewing for the past 15 yrs) so he thinks the UST will probably scrutinize this. Said we may have to give statements for the past year.
        You may want to get statements before you file, just in case. Once you file, most credit card companies turn off your online access, making statements difficult to get.
        Last edited by mike258; 06-23-2009, 04:08 PM. Reason: typo

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          #5
          Originally posted by mike258 View Post
          You may want to get statements before you file, just in case. Once you file, most credit card companies turn off your online access, making statements difficult to get.
          Yup 2 years back on all your accounts
          Chapter 7 07/30/2008
          341 09/17/2008
          Discharge 11/21/2008

          Comment


            #6
            I wouldn't count on Chase doing a dang thing. They drug me around for months and I finally said forget it. My parents had a WaMu mortgage that Chase took over and got nowhere either. Good luck with them.

            Comment


              #7
              Originally posted by TEW View Post
              Yup 2 years back on all your accounts
              Lawyer said a year. We'll have to assemble now just in case.

              As far as WAMU is concerned...wouldn't it be in their best interest to modify our loan to the current value and forget the HELOC (both WAMU owned) than to let it foreclose just to sell it at the same price? Highly doubt they will get more for it. There have been several foreclosures on my street with 1 more acre than us and same sq. footage and they sold for $320k.

              Comment


                #8
                Originally posted by 2muchinDebt View Post
                Lawyer said a year. We'll have to assemble now just in case.

                As far as WAMU is concerned...wouldn't it be in their best interest to modify our loan to the current value and forget the HELOC (both WAMU owned) than to let it foreclose just to sell it at the same price? Highly doubt they will get more for it. There have been several foreclosures on my street with 1 more acre than us and same sq. footage and they sold for $320k.
                If you get audited the UST will demand 2 years
                Chapter 7 07/30/2008
                341 09/17/2008
                Discharge 11/21/2008

                Comment


                  #9
                  Originally posted by 2muchinDebt View Post
                  Lawyer said a year. We'll have to assemble now just in case.
                  UST wants 2 years of statements, 3 years of credit applications, 1 year of bank statements & canceled checks, and more from me. Prepare for the worst, hope for the best.

                  Comment


                    #10
                    Niiiccce. We have them. Although I cannot access our Citicard accts. online. DH told them yesterday we were filing and last night I tried to log on and it won't let me access says I need to call.

                    Alot of t he debt we had for a long time, but we've also used the cards to get by. We also finished the basement by subcontracting and supplying the materials ourselves. I hope we are not audited. Our luck we will though.

                    Comment


                      #11
                      Your decision on the house should be based on value and not emotion. Is the house substantially underwater? How much do you owe and how much is it worth? Often times you're better off to get rid of all your debt including your secured debt and start over. If you decide to go that route I would recommend not paying the mortgages and stay filing bankruptcy as long as possible. Then you get to live free for a period of time before you surrender the house.
                      Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                      Comment


                        #12
                        Originally posted by OhioFiler View Post
                        Your decision on the house should be based on value and not emotion. Is the house substantially underwater? How much do you owe and how much is it worth? Often times you're better off to get rid of all your debt including your secured debt and start over. If you decide to go that route I would recommend not paying the mortgages and stay filing bankruptcy as long as possible. Then you get to live free for a period of time before you surrender the house.
                        That's what we will do if they do not modify the loan. We are not going to pay the mortgage. Our hand will be forced at some point. I am thinking that WAMU will not bring the mortgage down to the current value and we will then file a CH 7 and include the house, find a place to rent and start over. Of course there is some emotion ties involved. I am not one of those people who think it's just a roof over my head and can move from place to place with little thought. I grew up in a small town where people pass down houses from generation to generation. My starter home I knew we wouldn't stay in, and I hated that house, but was still a little sad to sell it. Wherever we were to go I'd make it a home of course, but we'd have to like where we are living and the schools, and the neighbors. It can be done...but who would want to do get rid of their home if they didn't HAVE to?

                        Right now we have the option to wait & see, but if it doesn't work out, it doesn't work out.

                        Comment


                          #13
                          Absolutely it's emotional.

                          It's important that the decision on how to proceed be based on wise financial thought and not the emotions. I didn't mean to imply there should be no emotions involved. I appreciate the concepts of home and neighbors. I just believe that too many people hang too much priority on those factors compared to the finance side of the equation and that can be a huge mistake.

                          Best wishes to you!
                          Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                          Comment


                            #14
                            I knew what you meant. :0) Although emotions are involved you have to make the right financial decision based on what would be the best outcome for the future.

                            Comment


                              #15
                              Originally posted by OhioFiler View Post
                              Your decision on the house should be based on value and not emotion. Is the house substantially underwater? How much do you owe and how much is it worth? Often times you're better off to get rid of all your debt including your secured debt and start over. If you decide to go that route I would recommend not paying the mortgages and stay filing bankruptcy as long as possible. Then you get to live free for a period of time before you surrender the house.
                              Please let me hijack this thread for just a minute. From what is said above would it would be wise to let a house go in a Ch. 7 if it is underwater? The reason I ask is that we are over $70,000 upside down in our mortgage, no late payments (yet) and we are struggling to decide whether to let the house go or try to keep it. We can't afford the mortgage with our income the way it is right now so we have been waiting patiently to see if we qualify for a loan modification. The bank keeps telling us maybe by the end of June. We have several children and animals so our fear is that we would not be able to find anyone "stupid" enough to rent to us. Even if we got rid of most of the animals, or even all of them, we still have a house full of children that most renters avoid like the plague.

                              One other question....the lawyer we consulted with this week said that if we surrendered it we would be able to live there for two years before we would be made to move out. Is that really possible? Without making any rent/mortgage payments? Let me add that this is in South-Southwest Florida.

                              Sorry again for hijacking your thread 2muchinDebt. It just seemed a good place to expand on the home thing and modification.
                              Filed Chapter 7: Feb. 9, 2012
                              341 Meeting: March 14, 2012
                              Discharged & Closed: May 21, 2012

                              Comment

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