Posted on: 08th Oct, 2007 07:38 pm
I am such a delinma. Don't know what to do. Please Help.
My house is scheduled for a Sheriff Sale on Oct. 11 which the record shows has been moved to the 18th.
The amount to resume my mortgage is astronomical.
I am considering filing Chapter 13.
It is my understanding that if the Sheriff Sale takes place, I have 6 mos to redeem the property or move out. Since I have two mortgages, I would be liable for the 2nd mortgage and the left over amount from the sale if it sells for less than asked for.
To resume my mortgage would cost $8,000, which I don't have but someone has agreed to loan me part of the money. This would catch up the mortgage plus pay the attorney fees. The problem is I will be right back in the tight spot I was in which got me into this situation. If I took this route, I would put the condo back on the market and sell it.
Filling for Chapter 13 would stop the Sheriff Sale and provide the opportunity for a payment structure for the mortgage and other debts.
The Foreclosure and the Chapter 13 would negatively affect my credit score.
Which seems like the lesser of the three evils?
Thanks much for your time and advice.
Isacmar
My house is scheduled for a Sheriff Sale on Oct. 11 which the record shows has been moved to the 18th.
The amount to resume my mortgage is astronomical.
I am considering filing Chapter 13.
It is my understanding that if the Sheriff Sale takes place, I have 6 mos to redeem the property or move out. Since I have two mortgages, I would be liable for the 2nd mortgage and the left over amount from the sale if it sells for less than asked for.
To resume my mortgage would cost $8,000, which I don't have but someone has agreed to loan me part of the money. This would catch up the mortgage plus pay the attorney fees. The problem is I will be right back in the tight spot I was in which got me into this situation. If I took this route, I would put the condo back on the market and sell it.
Filling for Chapter 13 would stop the Sheriff Sale and provide the opportunity for a payment structure for the mortgage and other debts.
The Foreclosure and the Chapter 13 would negatively affect my credit score.
Which seems like the lesser of the three evils?
Thanks much for your time and advice.
Isacmar
Considering the fact that both the short sale and chpater 13 will help you pay off the mortgage at least to a certain extent, I think the sheriff sale will have a less negative impact on your credit score compared to bankruptcy chapter 13.
In chapter 13, you will be paying a part of the debt compared to the short sale wherein if you can sell the home at a considerable price, then you will be able to repay almost the enitre loan through the sale and the remaining balance can be paid off by using extra funds from our savings.
In chapter 13, you will be paying a part of the debt compared to the short sale wherein if you can sell the home at a considerable price, then you will be able to repay almost the enitre loan through the sale and the remaining balance can be paid off by using extra funds from our savings.
hello isacmar,
i guess your first mortgage is slated for the sheriff sale. if you can arrange for the amount to resume your mortgage, then it is better to do that. it will stop the immediate sale and give you some time to check the market price and then sell your condo at a better price to pay off the maximum debt.
if you go for the sale, in that case you will still be liable to pay off the balance of second mortgage if it is not forgiven.
and last but not the least, both foreclosure and bankruptcy will damage your credit, but it is wise to avoid filing bankruptcy if possible.
feel free to ask here if you have any further query.
i guess your first mortgage is slated for the sheriff sale. if you can arrange for the amount to resume your mortgage, then it is better to do that. it will stop the immediate sale and give you some time to check the market price and then sell your condo at a better price to pay off the maximum debt.
if you go for the sale, in that case you will still be liable to pay off the balance of second mortgage if it is not forgiven.
and last but not the least, both foreclosure and bankruptcy will damage your credit, but it is wise to avoid filing bankruptcy if possible.
feel free to ask here if you have any further query.
Thank you for the response.
Are you saying it's best to pay the $8,000 and sell my property myself?
Mary
Are you saying it's best to pay the $8,000 and sell my property myself?
Mary
Hello Isacmar,
It was just my opinion. I felt it could be done to avoid further problem. I don't know how the market is right now at your place so, I think you can always wait for a better price.
It was just my opinion. I felt it could be done to avoid further problem. I don't know how the market is right now at your place so, I think you can always wait for a better price.
I live in Michigan and the housing market here is very very soft. Right now, we are number four on the list of worst housing markets. I had my house on the market for 6 months and it didn't sell.
with the foreclosure sheriff sale. my condo will get sold and as i understand it, the mortgage company will buy it so that it belongs to them instead of me. they are the investor. based on the information gathered thus far from realtors and attorneys, after the sheriff sale, i would have six months to redeem the property. thus, i could stay in the property for six months without paying mortgages but i would still be liable for association fees and real estate taxes. in the interim, i could put my house on the market. if i sell it myself, i would avoid the 7% realtor fee, etc. but would have to pay a closer. (somebody correct me if i'm wrong here.) however, if i do the short sale, my realtor would negotiate with the mortgage companies to take a lessor amount than what is owed, proving to them that the property is not worth what owed. more than likely, the mortgage companies will accept a lower amount. however, i might be liable to pay taxes on the difference in the amount (a 1099 would be issued for this year's income tax as income). also, the 2nd mortgage company could come after me for the difference through a civil suit or wage garnishment. the best case scenario would be that both mortgage companies agree to a lessor amount, the property sales, they get their money i am free of all mortgage debt.
by filing the chapter 13 bankruptcy, i have an opportunity to reorganize my debts, save my home and rebuild my credit score. however, i don't know how difficult rebuilding my credit would be because i already have the foreclosure on it. the rev. jessie jackson will be in lansing tomorrow and i plan to attend the town-hall meeting at 6:00 p.m. he, the governor, mshda, etc. are trying to come up with a solution to help homeowners with this foreclosure crisis. perhaps something will come out of it that will be helpful. thus filing chapter 13 to keep my home would be beneficial.
on the other hand, if i don't file and go ahead with the sheriff sale, i will be forced to sell my home. my credit is already damaged, how would i get another homeowner's loan in order to buy the condo back from asc/wellsfargo (presuming they would sell it back to me)?
filing chapter 13 gives me choices. i could keep it and sell it after 3-5 years if i want to.
that's how i see it.
experts, let me know what you think
isacmar
by filing the chapter 13 bankruptcy, i have an opportunity to reorganize my debts, save my home and rebuild my credit score. however, i don't know how difficult rebuilding my credit would be because i already have the foreclosure on it. the rev. jessie jackson will be in lansing tomorrow and i plan to attend the town-hall meeting at 6:00 p.m. he, the governor, mshda, etc. are trying to come up with a solution to help homeowners with this foreclosure crisis. perhaps something will come out of it that will be helpful. thus filing chapter 13 to keep my home would be beneficial.
on the other hand, if i don't file and go ahead with the sheriff sale, i will be forced to sell my home. my credit is already damaged, how would i get another homeowner's loan in order to buy the condo back from asc/wellsfargo (presuming they would sell it back to me)?
filing chapter 13 gives me choices. i could keep it and sell it after 3-5 years if i want to.
that's how i see it.
experts, let me know what you think
isacmar
Hi Isacmar,
I feel there is some kind of misunderstanding here. If the Sheriff's Sale has to take place, then the property will be sold off to the highest bidder in the sale. But it won't be sold off to you as because you are the borrower here. That's how it works. And, even if you file bankruptcy, it will prevent you from paying all your debts which you aren't able to do.
The Chapter 13 will require you to pay at least a percentage of your total debt. There will be a trustee appointed by the court and he's going to look into this issue. But filing the bankruptcy doesn't mean that your condo won't be sold. The bankruptcy will just put a halt to the Sheriff's Sale for some days.
The Sheriff's Sale cannot be stopped permanently by filing a bankruptcy. Your house won't be with you but you can repay a part of the debt through Chapter 13 and re-establish your credit.
Hope this helps though I think I'm late
God bless you.
Samantha
I feel there is some kind of misunderstanding here. If the Sheriff's Sale has to take place, then the property will be sold off to the highest bidder in the sale. But it won't be sold off to you as because you are the borrower here. That's how it works. And, even if you file bankruptcy, it will prevent you from paying all your debts which you aren't able to do.
The Chapter 13 will require you to pay at least a percentage of your total debt. There will be a trustee appointed by the court and he's going to look into this issue. But filing the bankruptcy doesn't mean that your condo won't be sold. The bankruptcy will just put a halt to the Sheriff's Sale for some days.
The Sheriff's Sale cannot be stopped permanently by filing a bankruptcy. Your house won't be with you but you can repay a part of the debt through Chapter 13 and re-establish your credit.
Hope this helps though I think I'm late
God bless you.
Samantha
