Yes, Another Home Loan Question

[aplcr944]

Background: We moved from Washington State to Maryland for a job. We rented our BofA Mortgaged house to Section 8 renters (first mistake). While we were in Maryland, the renters were late on most of their payments and were eventually kicked out of Section 8. We worked with the Section 8 people to get the renters out, but we could not. We could not afford to make payments on two households so we quit paying our mortgage. Finally secured job back in Washington and went to lawyer to evict squatters. Currently staying in rental home ourselves, not paying mortgage (it's been 15 months). Filed for Ch. 7 in November and awaiting discharge in late Feb. We did not reaffirm the mortgage.

We are still not living in the house and neither are our squatters. We have maybe a little bit of equity in the house (even with missed payments) and would like to keep the house.

Has anyone ever heard of someone refinancing a home that is this far into foreclosure? The house has a lot of damage done to it, and my wife and I are looking at an uphill battle but we would like to retain the home and save it if we can.

Any ideas?

Thanks

C

[bcohen]

If the house "has a lot of damage done to it", why are you looking to keep it? Are you planning to fix up the house and live in it, or are you hoping to rent it out again? Unless you actually intend to live in the house, and unless a comparable rental would cost more than your mortgage payment, it is not clear that trying to "save" the house is a good idea. A better idea might be to live in the house payment-free, drag out the foreclosure, and then when it forecloses, move out and rent.