Posted on: 30th Jul, 2009 11:14 am
i am trying to cover all my basis and all my options, my husband and i came out of chapter 13 bankruptcy 3 years ago. a month after the repay of the chapter 13 i lost my job. we had to use my 17 year accumulated 401k in order to live until i could find another job. i have been working again for the last 3 years at a large pay cut and less hours. we are in the state of michigan and the economy stinks.
we have slowly started losing ground again, had to refinance 3 years ago after our chapter 13, they put us in a 2 year fixed rate of 8% (lowest we had seen in years and years), but then would go to an arm. the 2 years were up and we wanted to refinance before the arm kicked in, found out that the house estimate has dropped and we now owe more than our home is worth. bank agreed to modify in the spring of this year, but the modification raised us to a 8 1/2% interest and here we are 4 months later really sinking!!!!
my parents own a home with 2 empty lots that sit behind their home, we were making personal land contract payments to them each month and they quit deed claim the property to us in 2005.
we are coming up on 3 months behind in mortgage payments in two days, we are filing quit claim deed for the property back to my parents tomorrow as we can no longer make payments to them for land contract. my husband and i retire in a year and that will be a significant cut in income. we can not sell our home because we are upside down, we have told by bank that we do not qualify for another modification, we can't make the payments, can't file bankruptcy and it appears our only option is to go into foreclosure.
i want to verify that information i have researched is correct if we follow this avenue, as we feel their is no other choice. our understanding is that our pension and social security checks can not be garnished, only the bank account (which has nothing in it anyway). i realize that it will take a while for this whole process to come about and eviction etc etc. since we will never be able to afford to build or place a home on the property that we have let go back to my parents, they have offered to have us move in with them and in return we will care for them into theri golden years.
when foreclosure is complete and judgement is made, we are thinking that since we will only be collecting pension and social security that our income will be protected as long as we pay any bills with money orders etc. and my parents are planning are setting up a trust, with us as executors of the estate so that we have somewhere to live after thier death.
am i missing anything that i may need to know in trying to protect what little amount of retirement money we will have?
we have slowly started losing ground again, had to refinance 3 years ago after our chapter 13, they put us in a 2 year fixed rate of 8% (lowest we had seen in years and years), but then would go to an arm. the 2 years were up and we wanted to refinance before the arm kicked in, found out that the house estimate has dropped and we now owe more than our home is worth. bank agreed to modify in the spring of this year, but the modification raised us to a 8 1/2% interest and here we are 4 months later really sinking!!!!
my parents own a home with 2 empty lots that sit behind their home, we were making personal land contract payments to them each month and they quit deed claim the property to us in 2005.
we are coming up on 3 months behind in mortgage payments in two days, we are filing quit claim deed for the property back to my parents tomorrow as we can no longer make payments to them for land contract. my husband and i retire in a year and that will be a significant cut in income. we can not sell our home because we are upside down, we have told by bank that we do not qualify for another modification, we can't make the payments, can't file bankruptcy and it appears our only option is to go into foreclosure.
i want to verify that information i have researched is correct if we follow this avenue, as we feel their is no other choice. our understanding is that our pension and social security checks can not be garnished, only the bank account (which has nothing in it anyway). i realize that it will take a while for this whole process to come about and eviction etc etc. since we will never be able to afford to build or place a home on the property that we have let go back to my parents, they have offered to have us move in with them and in return we will care for them into theri golden years.
when foreclosure is complete and judgement is made, we are thinking that since we will only be collecting pension and social security that our income will be protected as long as we pay any bills with money orders etc. and my parents are planning are setting up a trust, with us as executors of the estate so that we have somewhere to live after thier death.
am i missing anything that i may need to know in trying to protect what little amount of retirement money we will have?
Hi pameladu!
Welcome to forums!
As far as I know, you may be able to file Chapter 13 bankruptcy again as 2 years have passed since your bankruptcy was discharged. I would suggest you to speak to a bankruptcy attorney and take his opinion in this regard. As far as I know, whether you file bankruptcy or your property is foreclosed upon, your retirement benefits and social security income would not be garnished by the lender.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, you may be able to file Chapter 13 bankruptcy again as 2 years have passed since your bankruptcy was discharged. I would suggest you to speak to a bankruptcy attorney and take his opinion in this regard. As far as I know, whether you file bankruptcy or your property is foreclosed upon, your retirement benefits and social security income would not be garnished by the lender.
Feel free to ask if you've further queries.
Sussane