top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Housing Issue and Filing chapter 7

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Housing Issue and Filing chapter 7

    Im currently contemplating filing for Chapter 7 ( I pass the Means test). I owe 112,000 on my current home and have a home equity loan of 18,000. My house is currently valued around 50,000. In addition to this I have some 75 ,000 is credit card debt due to my first marriage.

    I'm living in an end-less cycle, only paying the min on the cc's and then having to use them to survive the month but I have never been late. I figure this can go on for another 6 months or so before the min become too much for me.

    I currently have some company stocks that I purchased when time were good (5,000 vaule currently), I could sell them and apply to cc's but that would be a band-aid fix. What I would like to do is use this money for a down payment for a much cheaper house. There are houses going for 25,000 in the area around work.

    Could I buy a new much cheaper house put my old house up for sale and file for chapter 7 in a six month time frame and keep the cheap house. I dont want to do anything fraudulent. I would rent but with two big dogs thats basically out of the question. Any help or advice out there.

    #2
    How are you going to finance the balance of the new purchase? Is your credit still ok?
    Filed CH 7 9/30/2008
    Discharged Jan 5, 2009! Closed Jan 18, 2009

    I am not an attorney. None of my advice is legal advice in any way..

    Comment


      #3
      Right now my credit is still good, last check 700.

      Comment


        #4
        Your income and DTI ratio would have to be sufficient to cover the mortgages on both homes in order to get approved for another mortgage while you still have one outstanding. What you are considering is called the "buy and bail" and lenders are really cracking down and trying to prevent those transactions. The fact that you are that much underwater and trying to buy a cheaper house is going to set off huge red flags. Not to mention, if you are barely making ends meet I'm sure your DTI ratio is extremely high right now, too high for your current mortgage let alone getting approved for another one.

        Besides, what kind of repairs and maintenance do you think a $25k house is going to need? I'm guessing it would require tons of cash to make it livable. Where would you obtain the funds to pay for that? Now is a good time for you to rent, get back on your feet, and save for your future so you don't end up smothered in debt again.

        Comment

        bottom Ad Widget

        Collapse
        Working...
        X