When to file? (a bit long)

[brokeinwa]

I've been lurking here for a couple of months and decided to post because I'm truly unsure of what to do next...
Here's my situation:

Debts:
Chase - $24000 (last CA $1250 in Dec., last pmt April.

Amex - $23000 (not used since Oct except for recurring cell phone bill -$35.00 - last pmt was March.

Discover $4600 - no CA's - last pmt in April.

BofA #1 $5600 - Balance xfer from some years ago - never used for anything else. - Last pmt was late March.

BofA #2 $13000 - last CA of $1500 in Jan, $850 purchase in Feb. - Last pmt was late March.

Ge Money $1900 Healthcare charge from July 08.

CU Visa $4800 - used a couple of times since March, but only for occasional small things $10 or so, but I'm still paying that one on time too as the payment is small and I haven't moved my checking account yet.

Went for free consultation with an attorney who said that we are a no-brainer BK7 case, but I should wait until June to file.

I was two months behind in house payment so I cashed in my IRA in April to catch up on that and pay the outrageous property taxes. That's also where I got the Chase payment.

I've been working with the NACA on a mortgage mod, but have heard some things that lead me to believe that it probably won't happen. If it doesn't, I will have to either let the house go and find a place for us to rent (family of 5), or suck it up and continue paying the $1800/mo house payment on time through the BK, though right now, between the house and utilities etc..., I have almost nothing left over for food or gas. This will likely change in Sept, as my disabled son turns 18 and will be receiving SSI and will be paying some rent which will help offset the house payment. My wife will also be eligible to be paid to be his caregiver. Between the two, that could boost our monthly income by about $1200.

My choices seem to be these:

1- File in June and hope I can make the house payment or hope I can find a place to rent if I can't continue.

2 - Wait to file until somebody sues me. Maybe delay filing as long as possible...ie... maybe my mod will go through after all?

3 - Stop paying on house now, and save the money for the atty, and rental deposit and 1st months rent, file, and see how long we can string out the forclosure process. Perhaps be discharged before we have to move. Not sure when it would be best to file if we do this, or if a rental agency would even work with us.

4 - Stop paying on house now and get a rental before filing, though I am afraid I'll be sued by CC's before we accumulate the funds for the atty and rent etc...

I intend to get another consultation soon, but until then, I was wondering what others would do?

[HHM]

You have some money coming in which is good. So your first priority right now is to figure out what you can really afford. It sounds like to me that even if you got a mod, it probably wouldn't help and it sounds like you are mentally prepared for the fact that you will be walking from the house.

I'd say;
Stop paying mortgage now (believe it or not, that will actually help the modification process). You didn't mention which state you are in, but as with most states, the foreclosure process can take many months. In fact, I am willing to wager you can continue to live in the house until the end of the year (if you throw in a BK at some point) before you would need to move. Save your mortgage payment to pay for an attorney and to fund the move when the time comes. Next, continue to work through the modification process and see what happens. In the mean time, hire an attorney that will allow you to make payments to build your fees, that way the attorney fee hit isn't all at once.