Is it too late to chg my mind?

[dmc-2008]

Thank you lady and all! Yes my first is under or just at market! So i think that qualifies a strip? I have refied. Part of my problem is they wouldnt combine my 2nd because of the low value on my home. Yes it saved me $$ but the second and third still sit out there! Killing me! They put my mortgage over the top.

[LadyInTheRed]

I hope i can keep it, after all when it is over i wont be underwater any more if they strip the 2nd.

That comment makes me think you may not be able to strip the second. You can only strip the 2nd if the value of the house is equal to or less than what you owe on the first mortgage.

But since i havent filed i can go with 13???

Based on the very little information I know, I don't see why not, assuming you have regular income and can propose a feasible plan. Being late on debt payments don't disqualify you from a Chap 13. In fact, being late on a mortgage is often a reason to consider a Chap 13.

Take the total arrears on your 1st mortgage and divide it by 60. Can you handle a plan payment of at least that amount and make monthly mortgage payments? (it will be a little higher than that to include trustee fees and could be much higher depending on your income and any non exempt assets you may have)

Just because you can file a Chap 13 doesn't mean you should. Have you consulted with any BK attorneys?

As far as the ability to walk away later, is your first mortgage a purchase money loan (the original loan you took to buy the house)?

[dmc-2008]

But since i havent filed i can go with 13???

[dmc-2008]

I am in ca too! Yes at the end os chap 13 with second gone i would be ok. Yes my first and hoa is less than rents by over 600 or more a month! I want to keep it because of location as well! It 10 min from my work and daughter school. I hope i can keep it, after all when it is over i wont be underwater any more if they strip the 2nd.

[LadyInTheRed]

It's not too late to file a 13, but it may not be the right decision. And, as already pointed out, your credit rating is already damaged.

Renting may be more difficult without a good credit rating, but it isn't impossible. Keep in mind that you have at least a few months to find a rental before the bank gets around to foreclosing. You do not have to move out of your house just because you file BK. Don't be discouraged to quickly.

You say you can't afford the rents in your area. With all the foreclsoures, rents have increased along with demand. Is your mortgage lower than what you can rent for? Don't forget to include insurance, property taxes, maintenance and your income tax deductions. If it is really cheaper for you to stay, do you have the income to support a Chap 13 plan that will pay mortgage arrears in 36 to 60 months while making regular monthly mortgage payments?

Many will say that if your home is far enough underwater, you should walk away. If you can afford to keep the home, I think there is more to consider than that. One of the big factors in my decision, besides the fact that I can't rent for less, is that my first mortgage is a purchase money loan on which California Law prohibits the collection of a deficiency. So, I can still walk away later and not have personal liability for the mortgage, even though it won't be discharged in my Chap 13.

Carefully consider your options. But, don't make a decision based on a fear that you won't be able to find a rental after BK.

[dmc-2008]

Yes i am underwater! But better than being on the street! I should have done more research for sure! I hope i am not too late to stay put!

[df04527]

If you haven't paid since June your good credit is already in trouble as you are over 30 days late and will be reported to the bureaus. Sounds like you need to do a little more research before you make a decision such as your home's value versus what you owe on it. Is there a second mortgage? Etc....

[dmc-2008]

I havent made a pay on anything since june and i was planning to do a 7. But today i was looking at rentals and they all stated "good credit" as well as being more $$$ than i can really afford! I freaked out! Can i file a 13 and save my home now or by not paying is it too late??? Thanks for input!