Went to firs interview thinking on filling for chapter 7 but... please read

[aish]

Thank you very much mensa1 I really appreciate it, I'm sure ur right, we were watching the news yesterday and all of a sudden came up this news talking about banks don't know what to do with too many houses that they were offering them w/ $100 as down payments... so this is getting really bad... (for them, good for us) the lowest I'd ever seen was the "$500 moves you in"

I talked to hubby today about this, I told him we don't have to leave right away, and he said ok we'll let it go...
we will try our last resort and if it doesn't work then we'll leave.

[Mensa1]

ok! thank you very much for answering!! (again)

we didn't want to let the house go, (well, my husband more then me, he feels really bad about it...)

we are now kind of ok ... "let's do the 7 and get out of all this debt and we'll see what happens next, we'll be ok..."
we checked my husband's score yesterday and it is 512 he was on the 700's before all this happened, it's been 7 months now.... I won't bother checking mine, I just don't care anymore about it.

I know it is hard to separate these emotions but you are much better off if you can master that. Just keep in mind there is going to be lots and lots of housing inventory available for the asking out there, for a loooooooong time to come. So if you lose, or better yet... decide to give up that house, there will be 10 to replace that one. And maybe one or 10 of them would be better than the one you have now... so don't limit yourselves by emotions...

Another point, as stated by someone wiser than most of us, stated:
"Don't fall in love with anything that can't love you back." (this includes houses).

[aish]

ok! thank you very much for answering!! (again)

we didn't want to let the house go, (well, my husband more then me, he feels really bad about it...)

we are now kind of ok ... "let's do the 7 and get out of all this debt and we'll see what happens next, we'll be ok..."
we checked my husband's score yesterday and it is 512 he was on the 700's before all this happened, it's been 7 months now.... I won't bother checking mine, I just don't care anymore about it.

[Mensa1]

I just read another post, they were talking about declaring under CH7 and not reaffirming the mortgages any of them, but continue paying the first and staying here...

in this case...since we are not obligated to pay for them anymore, and the equity of the home is not too much, then stop paying the second and when they start getting tired of missed payments, try to settle, make an offer to them for some cents on the dollar to release the lien, since we are not liable to pay anymore, then something is better then nothing for them, we could be lucky enough to convince them....

There's still the risk of loosing the house still if values come up later, which I doubt... this is a really small town, no jobs, no big stores... nothing.... so maybe we can try that one. instead of Ch13

what do you all think???

I would take the ch 7 approach and worry about dealing with the 2nd mtg later. If discharged, the only place the lender on the 2nd can look is to the value of the property. If there is little to NONE, then you have a good case for a settlement. BUT, leep in mind even though no equity exists, don't expect the lender to be overjoyed and simply say "here ya go". Human nature enters into this and even lenders are run by humans, as hard as that is to grasp, based on their assinine approach sometimes.

The hardest thing for the typical homeowner to grasp here is to let the 2nd mtg season after discharge. Be in NO hurry to attempt a purchase of the note or release of the mtg. This is a dead giveaway and most ho's can't help themselves. Getting in a hurry here will kill any potential deal. I would recommend two things here; 1) wait 6 months after disch, 2) use a professional for negotiations with the lender... as in that party is interested in buying your 2nd mtg. As opposed to YOU trying to cut a deal with the party that you just defaulted out of 30K (or whatever value the mtg is for).

[blessed]

If you qualify for a 7 that is probably what I would do. But I don't have a 2nd mortgage to settle so I'm not sure what I would do in your shoes.

GL!

[aish]

Anyone...

[aish]

I just read another post, they were talking about declaring under CH7 and not reaffirming the mortgages any of them, but continue paying the first and staying here...

in this case...since we are not obligated to pay for them anymore, and the equity of the home is not too much, then stop paying the second and when they start getting tired of missed payments, try to settle, make an offer to them for some cents on the dollar to release the lien, since we are not liable to pay anymore, then something is better then nothing for them, we could be lucky enough to convince them....

There's still the risk of loosing the house still if values come up later, which I doubt... this is a really small town, no jobs, no big stores... nothing.... so maybe we can try that one. instead of Ch13

what do you all think???

[aish]

am I understanding right??
if I stop making more payments on the first then it will accumulate interest or late fees and everything and the balance will go up??

we owe $88,639 on the first, so we are losing our house for around $361 if valued at 89,000...

will it be better to not make more payments???

and after it accumulates balance... file bk? on CH 13...

[JackBondLove]

Doesn't sound like you need to worry about the homestead exemption at all because you have no equity in the house. You owe 138K on it and none of the estimated values are that high. So you don't need a home exemption.

It sounds like the attorney would like to strip the 2nd mortgage; this could only be accomplished if the net salable value of the house were under the amount of the 1st mortgage. Or alternatively, the debtor would like to strip out all liens on the home in excess of the salable value. (I define salable value as the amount that could reasonably be garnered from selling via a real estate broker, after commission and closing costs.)

[BCA2009]

That's what I just said. If she stops paying the mortgage, the balance will go UP, while the value stays the same.....

You are correct, I had a brain freeze, my apologies

[momofthree]

Aish needs the balance to go the other way. The value of the home needs to be below the payoff on the first to get the second stripped.

That's what I just said. If she stops paying the mortgage, the balance will go UP, while the value stays the same.....

[BCA2009]

This is just me thinking out loud, but if you didn't pay on your mortgage for a few months, couldn't you bump that first mortgage balance up above $95k?

Aish needs the balance to go the other way. The value of the home needs to be below the payoff on the first to get the second stripped.

[momofthree]

This is just me thinking out loud, but if you didn't pay on your mortgage for a few months, couldn't you bump that first mortgage balance up above $95k?

[aish]

Thank you for answering my question! I'm new in this and totally lost...

well The other realtor came and gave me a CMA report, she said value is $95,000 at the most, which is same as the other realtor told me....

well that doesn't work either.... I think we'll have to give up the house too.... and file for Ch 7..

am I right?

[BCA2009]

I got the first comparative value today, I gave all the info so the realtor could research, he just called and told me that the present home value is between 89,000 and $95,450, the reason he's giving an in between it's because of the last house sold that was similar in age and sq ft then mine. ( I never thought I would be happy knowing my house was worth less then we paid for it! )

I called another realtor and she's coming at 2:00 pm to check out the house and give me an accurate value for free.

How much should the house value be for the second mortgage to be deleted/stripped or whatever it's called... on C13???

Totally unsecured. The value of the house should be less than the first mortgage amount.