Did we leave our house too soon?

[skibum]

My first post, thank you to all who help here.

I moved out of my house way too early. My attorney grossly over-estimated the speed with which the bank would start foreclosure, and under-estimated the amount of time we could have stayed in our old home. We were only 3 months behind on payments when we moved out in December, in a panic, thinking it would be April when they foreclosed. They haven't even started yet. We could have lived there a year rent free, or even longer. Now we have to pay rent and might be facing eviction soon.


When I asked him if we could move back, he responded saying he needed more money before he could answer my question. We never even got the straight scoop between chapter 7 and chapter 13, I didn't realize until talking with a friend who filed it the other day that you can KEEP your house in Ch 13. I feel like I have been ramrodded into Ch 7 and that perhaps that was not our best interest, at least in the short term.


Have we been damaged? This has been a nightmare for us.

[discombob1]

I'm curious to hear the answers, but I find it hard to believe that moving back in now would be in your best interest. You would have had to have enough income to fund a Ch 13, and if you are having trouble making ends meet now that may not have been an option. Can you focus on finding a cheaper rental place?

[ssmdem]

I wouldn't rule out moving back in. Next month will be a year since we made our last payment, and the bank STILL hasn't started foreclosure proceedings. I've been told it's about six months from the date the lis pendens is filed. That's here - so you'd have to find out the time frame in your state. I'm not budging until we get a auction date for the house. Our attorney told us to not worry about it until then and to plan on moving out the week before the auction date - just to give us some wiggle room.

I agree though that if you're having a hard time still now, then a chapter 13 probably wouldn't have been the best option for you. Chapter 7 was probably the right thing for you.

However, if you can get around having an eviction on your record, I would do it. That's going to make it VERY hard to find rentals in the future. Can you let the landlord know that you're voluntarily leaving so that they don't file for an eviction?

[discombob1]

Tom should be along shortly, he will probably know the foreclosure laws in CO so you have a better idea of your options.

[keepmine]

If you couldn't pay your mortgage and then, struggle to pay the rent it sounds like you haven't downsized enough.
You don't just get to keep your house in either chapter of bk. You still have to pay the mortgage. In a 13, you can strip a lein on a 2nd mortgage under some circumstances. But, the first mortgage still has to be paid and any mortgage arreage is repaid through the plan at 100%.
I'd suggest you focus more or stablizing your finances and not worry about 2nd guessing your attorney.

[skibum]

Good advice everyone, thank you. We aren't facing eviction right now, but will have to try to break our lease in several months if things don't change. I tend to panic, so please bear with me. We don't have much overhead, but I have a very sick, disabled wife that I care for in addition to trying to run my own business and my time gets crunched. She was very ill when we basically RAN out of our house in December, even though we didn't file chapter 7 until late January. It pains me to think we could have taken things a bit slower, because now her health is even worse due to the stress of the move. Mine too. I agree, focus on the getting things fixed, and I am trying very hard to do so, but it is very hard. I battle depression myself, probably from watching my wife suffer for the past 15 years while trying to hold it all together. I am sure this is a familiar story here.

The other part of the story is that the house is in a different city, one where I had many contacts and lived for many years. We moved about 90 miles away, where I know very few people. I miss my old city and my friends and think I would have a better shot at getting more business there than where I am now. Part of the 90 mile reason is to be closer to doctors for her health, and to be closer to my sick 90 year old mother. The big problem, though, is that if I am not healthy and earning, than no one wins.

[discombob1]

You have a lot of challenges, no question. But look at it this way... if you do go back, you face the uncertainty that any day you will have to move yet again. That will certainly not help anyone's health or sense of safety.

I would urge you to speak with your doctor. These types of issues can make depressive symptoms that much worse. You did the right thing by leaving... you had to leave at some point anyway. Now, take care of yourself and your wife first, then work on the finances second. Take one day at a time and come here for support if necessary. You are not alone... but take care of yourself first or you won't be able to care for anyone else.

Good luck!

[helpmeout]

Until the bank forecloses and changes the deed out of your name, you "own" the property. And you can move back in.

[skibum]

I am not certain that staying where I am gives me any more certainty, I am not sure, I don't have a job and work for myself I really miss my little town in the mountains and my friends. We used to drive to the doctors in the city, it took all day but we did it. With the traffic down here, it still takes a long time. The anticipation of being debt-free and moving back and scaling way back is appealing to me. I think I could have a nice little business there. I am almost excited thinking about it... I am not sure moving back into the house is a viable option right now, but maybe renting a small place might be. It was a big house, way more than we need and expensive to maintain. Maybe we could move in for a while, with just a few things. Our kids are grown, and my daughter still lives up there, my son down here.

I agree I have to take care of myself. I was thinking suicide for a while. My doc put me back on prozac, and also upped my thyroid meds and I am finally feeling better. Exercise is a big help for me, too,

My wife has a mental disability, caused by her meds and a stroke. She gets "prednisone psychosis" when the meds are high, it's awful. She can barely speak.

I grew up in Detroit, btw, 8 mile and Greenfield.

Thanks again everyone. I wish I had found and started using this place sooner.