My husband and I are going to file a chapter 7. I guess we are border line on our income. We have the option to surrender our house and let it go into foreclosure or we can reaffirm it and stay in it.
Here is some backround - our current home is mortgaged for approx. $255,000. The current value of our home is $217,000. We got the second mortgage to pay off some other debt a while ago, (mostly credit cards). We pay $2000 per month for our First (including taxes & insurance and escrow shortage payback) and our second. We have a 3500 total sq foot home with 4 bedrooms, full basement, 2.5 bath, large kitchen and 'bonus' room that we use as a play room. Our back yard is almost unusable because of the slope. We live on a cul-de-sac.
The house that we would be moving to would be $1000 per month cheaper. It is 3 bedroom, 2 bath. It has a large privacy fenced in yard with an above ground pool and 2 tier deck. It need some work here and there, mostly cosmetic.
2007-09-18 06:06:14 · 10 answers · asked by sahmcclure 2 in Family & Relationships ➔ Family
I know that on paper the decision looks obvious. I'm emotionally attached to our house. We built it 2 years ago.
2007-09-18 06:07:12 · update #1
My dad would be selling us his house under a land contract to getting a mortgage on that won't be a problem since they are treated like a refi rather than a purchase.
2007-09-18 06:15:19 · update #2
We are going to file chapter 7, there is no way around it. We did not deal with a mortgage broker, since I used to be one, I know how they work.
I'm simply asking if you would give up a house that you loved to move into a house that was just okay to save $1000 a month and not be flipped on your mortgage.
I know that the BK will screw our crdit for a while. I'm very aware of the effects of BK. I have very much done my home work.
2007-09-18 06:30:43 · update #3
To be blunt, we don't have the money to pay our debts. Obviously or we wouldn't be filing for a BK. It is embarrasing. We are not the abusers of the system. We are tired of robbing Peter to pay Paul. We have 2 small children and have food to pay for.
2007-09-21 12:18:20 · update #4
hey you have to go with what is important....a roof over your head..go for the cheaper house...you may be able to get aother one n the future like this one...dont get attached o materialistic things.
2007-09-18 06:12:03 · answer #1 · answered by me 3 · 0⤊ 0⤋
I dont really understand your question. Would you be giving the house back and then buying the other house that is $1000 less. But to what i understood then i will give you my opinion. Well since it is a chapter 7 bankruptcy you could buy a house again in 2 years. A lot could happn in 2 years. Your income could go up or down. Now on the house you want to foreclose (if i undesrtood correctly) has negative equity because its worth 217,000 (in the current market?) but you owe $255,000 i dont know personally i would go with the $1000 dollar house. I would be saving $1000 dollars a month more which is 12000 a year extra in my pocket. Now since you will have bad credit for a while no one (with some exceptions) will give you credit so you will be able to save money if you learn to budget yourself. If you are getting this $1000 dollar home there is so much you can do to it. Not only that afetr you are done it will leave you in great equati position. If the mortgage is only $1000 then the sale price must be low. HAve you guys thought about rentingthis house. I dont know where you are at but if the comps are high enough and you are able to you can also rent it move to the cheaper house (if you are able to do so) and have your tenants pay for the other mortgage while you work and pay a lot less for the cheaper house.
2007-09-18 06:23:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
In your case this site can be very helpful RATESCOMPARE.INFO- RE Unable to file bankrupcty, still need legal advice? I need legal advice on how to handle a debt problem. I owe $10,000 to 3 USA credit cards each, so a total of $30,000. I am broke, but according to all the lawyers that I have consulted (all of them belong to the California American Board of Certification, the national certification board for bankruptcy, or the ones rated on the Best bureau Business,) tell me that I can file for bankruptcy, but the judge will not allow the debts to be discharged (Is a long story and all the lawyers ask me why and once I explained them, they agree that is not advisable). I have lived a hell suffering because I think is not ethical to avoid paying, but I am broke, my plan was not to do this, they offered me credit cards with balance transfer and I used them as a way to borrow money while I was solving my problems here, but things did not worked the way I planned and suddenly I cannot obtain more balance transfers and the debt is there but I am broke. So, I am not looking for a lawyer to file bankruptcy, I am looking for a lawyer that answers my questions that I will have through the collecting and suing process. I am Mexican, I have lived in Mexico the last 7 seven years of my life. I do not have any assets in the US nor in Mexico or anywhere, I do not have any assets at all. The same lawyers that I have contacted, I have asked them for a legal consultation, but, they do not offer that, some of them have suggested me to look for a lawyer with practice in the debt collect law. So, my first question is where to look for a reliable lawyer. The questions that I have right now for this lawyer are below, just in case you want to give your opinion if have had any experience on this. What happens if I answer the call and tell them that I will not pay them? If I tell them that I do not have any asset in the USA? And I am not living in the USA? And I am broke? I am not American (this may cause that the bank send a notice to migration)? They may find out that I have some relation with that address in California is that a problem for the people that live there? Are they ever going to go the California address? They may find out my address in Mexico, is that a problem? If in the future I want to go to the USA, Will migration sends me to jail or does not allow me to be there? How long does it take from the initial of collecting until the release of charges from being sued? What happen if they sue me?
2016-05-17 21:20:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would reaffirm the house. Once youve filed for chapter 7 bankruptcy, all of your other debts will be gone and youll still have your steady income to rely on. Also once you file, you may not be able to credit qualify for another mortgage for a few years. I would stay, and enjoy the financial freedom that comes along with bankruptcy.
2007-09-18 06:12:58 · answer #4 · answered by a'sgl69 1 · 0⤊ 0⤋
It's just a house. Move to the cheaper one. I think declaring bankruptcy is a bad idea because it's a result from choices you made. Walking away is not fair to everyone else who has to pay higher interest rates because other people don't pay their debts. I know it's a heart-wrenching decision and I don't mean to be mean, but that is how I feel about it. If there is a way to pay your debts honestly and fairly, you will feel better about it in the long run, too.
2007-09-18 06:41:29 · answer #5 · answered by the_dragyness 6 · 1⤊ 0⤋
It sounds to me that 2 years ago you made a bad financial decision by buying a house that you could not really afford.
I know that the mortgage broker made it look like you can afford it so he/she can sell you the house so he/she can get the commision.
Based on that - get rid of the house, it is financially draining on you and it wont be before long before it start taking its toll on your relationship.
Get a cheaper house - you dont need all the space, trust me.
Congress mad filing for bankruptcy very dificult for individuals so you may not be even permitted to do it.
If you file for bankruptcy, it will destroy your credit so good luck getting a loan for the next 7 years (that is how long it takes for it to disappear from your credit report).
Good Luck.
2007-09-18 06:16:57 · answer #6 · answered by Dimitar A 4 · 1⤊ 0⤋
All I know is that bankruptcy is an awful and humiliating thing to go through. Whatever it takes to keep from it would be worth while. If giving up your home would avoid it, by all means, give up your home! The other one sounds like a winner too!! You are lucky!! A smaller house means less work for you, and a back yard means a grand place for the kids!! Enjoy!!
2007-09-18 06:15:56 · answer #7 · answered by Jann 3 · 0⤊ 0⤋
why did you choose chapter 7, you will lose everything that is not paid off. i filed chapter 13 and i'm keeping all my belongings. we have to make a monthly payment to the court and all of the debt will be paid off in 5 years. if you can afford 2000.00 a month you can afford to keep your home. but noone can tell you what's best for you and your family, that is totally up to you. if we had another house to move to that was cheaper i would jump on it, but alas i've already filed.
2007-09-18 07:57:30 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Hi,
I used "Credit Solutions" to settle my debt.They managed to reduce my debt up to 58%.It's legitimate.I came accross this company on NBC News Special Edition.Check it out here:
http://urlcut.com/1krdf
2007-09-19 09:24:11 · answer #9 · answered by Kenny 1 · 0⤊ 0⤋
Here's some more homework for you. I would suggest you read the article "New Bankruptcy Law – Where’s The Consumer Protection?" you can view it at:
http://www.sandiegolawyerforyou.com/san-diego-bankruptcy-law-update.htm
http://www.new-jersey-lawyers-directory.com
http://www.las-vegas-nevada-lawyer-attorney-legal-injury-defense-directory.com/las-vegas-bankruptcy-lawyers.htm
http://www.san-francisco-oakland-bay-area-lawyers-attorneys-directory.com
http://www.san-jose-ca-lawyers-attorneys-directory.com
http://www.sacramento-ca-lawyers-attorneys-directory.com
http://www.la-orange-county-lawyers-attorney-directory.com
2007-09-20 09:43:18 · answer #10 · answered by Anonymous · 0⤊ 0⤋