Might be a stupid question about giving up house

[Naomi]

This was our first house - bought in 2005 - and in hindsight hould not have bought a house so far out of town. (We're in S GA in a rural type location.)
Basically, we want out. Want to move away - eventually out of state.

There are 6 houses in our "subdivision", all similiar in price range, on 1 + acre lots. Two of my neighbors have tried to sell their houses in the last couple of years and neither one sold. I don't really talk to my neighbors, but watched the For Sale signs stay up for awhile and then go down. Checked property records and nothing has been bought/sold since we bought.

I think we're going to have to file bk in the next year and I would love to just start over completely.
We can afford our house, though and have never been late on payments. We shouldn't be upside down on our mortgage ( I don't really know how all this works, though). We only paid about $100,000 for it.

My fear is that if we go through a bk and then are still stuck in this house because we can't sell - then what?
Can we just move and leave the house? Include it in the bk?

I was thinking about talking to a realtor and putting our house on the marker later this year/early next year just to see what will happen. Maybe we'll get lucky, but if we don't...

[keepmine]

First thing you do is find out if you have any equity in the home. Ask a realator what it would realistically sell for.
You need to know if you have any equity and if so, is it below what your state exempts.

If you reaffirm the house and can't sell it for what you owe you 'll be stuck with the deficiency balance. Find out where you stand before you file. This is an instance where preplanning will be benefical.

[Naomi]

In 2007, we were approved for a HELOC of $11,000. I think our bank (USAA) "appraised" the house around $113,000. This was all done over the phone so I'm not sure how accurate that was or how they came up with that amount.
Of course now, the heloc is maxed out because we used it pay off cc's and then you can guess how that story goes/ends.

Ok, so I should get a current estimate from a realtor first.

Do you mind explaining the GA exemption in even more simpler terms
I'm not sure if it's because I worked last night and should be sleeping now or just because I don't get it. I'm almost positive that we don't have $20,000 in equity -that's about all I understand.

Homestead

44-13-100 - Real or personal property, including co-op, used as a residence, up to $10,000 (up to $20,000 if married whether the spouse is filing or not). Unused portion up to $5,000 may be applied to any other property.

If we have equity, but have a maxed out heloc - do they cancel each other out?

Thanks!

[StartingOver08]

It is not possible to determine how much equity you have in the property without have a current market value. The CMA is provided by the realtor and is free. Tell them you are looking for a 'quick sale value'.

Any appraisal more than 90 days old is out of date and can not be used for value.

[DebtEnder]

If you want a real value of the home get an appraiser that specializes in REO(Bank Owned) property. They focus on the true value of the home in a quick sale (90 days or less) condition. It's not just a drive by but a full on walk through. They are not home inspectors but they are looking for things that put people off paying top dollar. But as SO08 said a local Realtor can give you a good ballpark

If you got the home for 100k and then a 2nd mortgage of 11k then you owe 111k. Ga law for joint filers allows up to 20,000 to protected in chapter 7. In other words the house would have to be able to SELL for over 131000,not including all the cost involved with selling the place, MINIMUM before the TT could even think about taking it, not that I think you care that much if he did I doubt you have anything to worry about. I have family that lives a bit west of Macon. Nobody is buying ANYTHING out there

As far as moving out you can do much as I am doing. The house mortgage is of course included, am am NOT re-affirming the debt so I am not liable for the loan to the house anymore. I plan to live here without paying a dime for as long as it takes countrywide to kick me out. The entire time saving a wad of cash for a deposit on a rental house and other expenses. So I could walk away now but why not live rent free for at least a few months?

[isabella19]

Can you use the tax evaluation amount you get from the assessors office yearly as an appraisal or do I have to go through a realtor.
Either way, we are upside down. Our house was worth 250k two years ago & we owe 200k. I have seen houses similar to mine & they cant sell for 150k. The property value in my area is pitiful & there are more foreclosures in the area than homeowners.

[DebtEnder]

Tax assessors are the last place to look for a real value. You need to contact someone in the bussiness of getting home values to look at the house. A Realtor (not my choice, but free) or an appraiser, best choice as they have a full legal report proving why the home is the value it is, but they will cost you few hundred bucks. 300-400 is the typical fee range for a sub 500,000 home

[Naomi]

Thanks everyone.
I e-mailed the realtor we bought from and told her I needed a CMA. If I don't get a response, I'll call her on Mon to get more info.