Posted on: 10th Aug, 2010 06:58 pm
Hi.
I own two homes. Neither of which I want at this time, but also neither of which I can afford to sell because I'm hopelessly upside down in both due to market changes...to the tune of $140k. I make too much to qualify for chapter 7.
My question is, would it be better to foreclose on both houses if I don't want either, or to file chapter 13 and surrender both properties. I am currently 4 months behind on my mortgage on one and up to date on the other...but the cumulative effect of my debts is just too much.
Thanks for your help.
I own two homes. Neither of which I want at this time, but also neither of which I can afford to sell because I'm hopelessly upside down in both due to market changes...to the tune of $140k. I make too much to qualify for chapter 7.
My question is, would it be better to foreclose on both houses if I don't want either, or to file chapter 13 and surrender both properties. I am currently 4 months behind on my mortgage on one and up to date on the other...but the cumulative effect of my debts is just too much.
Thanks for your help.
Hi MattG
Welcome to mortgagefit
Before taking any quick action with emotions one need to analyze the situation and work on it.
Firstly if you own any home other than these two mentioned in the post and will be able to stay peacefully in that home then surely you can either foreclose or ch.13 BK for both homes.................... but .........
.if you do not have any other alternative for your staying facility if you ever take any action on these two homes (BK or foreclosure) then you should not opt for BK or foreclosure for both the houses.
Rather you can keep paying on one mortgage and another home can be foreclosed or filed for ch.13 BK.
Before we go ahead with the discussion on this one simple question
do you have staying facility once you foreclose or declare ch.13 on both the homes?
DIPA
Welcome to mortgagefit
Before taking any quick action with emotions one need to analyze the situation and work on it.
Firstly if you own any home other than these two mentioned in the post and will be able to stay peacefully in that home then surely you can either foreclose or ch.13 BK for both homes.................... but .........
.if you do not have any other alternative for your staying facility if you ever take any action on these two homes (BK or foreclosure) then you should not opt for BK or foreclosure for both the houses.
Rather you can keep paying on one mortgage and another home can be foreclosed or filed for ch.13 BK.
Before we go ahead with the discussion on this one simple question
do you have staying facility once you foreclose or declare ch.13 on both the homes?
DIPA
Hi MattG,
You can apply for a deed in lieu of foreclosure in order to get rid of the property on which you're 4 months past due. This will not only help you in getting rid of the property but you won't be liable for paying the balance dues. As far as the other property, on which you're current, is concerned, you can keep it for the time being and check if you can afford the payments.
Thanks
You can apply for a deed in lieu of foreclosure in order to get rid of the property on which you're 4 months past due. This will not only help you in getting rid of the property but you won't be liable for paying the balance dues. As far as the other property, on which you're current, is concerned, you can keep it for the time being and check if you can afford the payments.
Thanks