Posted on: 17th Mar, 2012 08:58 pm
I am currently 5 months behind on my Wells Fargo mortgage ($7,500) in IL. We want to walk away and do a strategic default. I have only seen one lawyer and she told me to file Chapter 13. We went in with the intention that we are going to voluntary foreclose but did not realize that the mortgage company could come after us for years to come. I owe $155k on my home. It’s worth about $100k. I figure I can take my $1,600 a month and go rent something much nicer.
I see my options as this:
1. I foreclose and file Chp 13. I am then on less payments and understand the mortgage company can’t come after me.
2. I foreclose and walk, don’t file the chp 13 and have enough cash to make it. I can always borrow a couple thousand from my dad if I get in real trouble.
Questions:
1. She wants to charge me $4k for Chp 13 that sound about right?
2. I have a credit card thru work (travel, etc) It’s thru Mastercard and has my name on it. Yet it does not show on my credit report. Can I get in trouble at work for doing this and risk loosing the card?
3. Any other way I can foreclose on my home and not file Chapter 13. We grew up thinking how bad this all was but more I read, the more I’m convinced this is not that bad of an idea???
4. What do I do with my $8k in the bank, start taking it out?
5. If I file Chp 13, how long until I can buy a home or car?
6. If I go rent, do I tell landlord the truth on what I am thinking of doing, strategic foreclosure?
7. What is the best time to do this? Prob wait until last minute an pocket as much cash as possible before I rent.
8. Should I try a short sale instead?? What are the implications if I don’t sell it, does it just foreclose?
Financial Information: Home: Owe approx $155k, worth approx $100k; Home Equity Line of credit: Owe $11k. Private school for kids is $6k a year. School Loans: Owe approx $70k, I realize I am stuck with these. Car: Owe $25k Credit Cards: Approx 8 cards at $25k Medical Bills: Approx $5k
We have $8k in the bank. One income, approx $90k a year. Married w/ 2 children.
I see my options as this:
1. I foreclose and file Chp 13. I am then on less payments and understand the mortgage company can’t come after me.
2. I foreclose and walk, don’t file the chp 13 and have enough cash to make it. I can always borrow a couple thousand from my dad if I get in real trouble.
Questions:
1. She wants to charge me $4k for Chp 13 that sound about right?
2. I have a credit card thru work (travel, etc) It’s thru Mastercard and has my name on it. Yet it does not show on my credit report. Can I get in trouble at work for doing this and risk loosing the card?
3. Any other way I can foreclose on my home and not file Chapter 13. We grew up thinking how bad this all was but more I read, the more I’m convinced this is not that bad of an idea???
4. What do I do with my $8k in the bank, start taking it out?
5. If I file Chp 13, how long until I can buy a home or car?
6. If I go rent, do I tell landlord the truth on what I am thinking of doing, strategic foreclosure?
7. What is the best time to do this? Prob wait until last minute an pocket as much cash as possible before I rent.
8. Should I try a short sale instead?? What are the implications if I don’t sell it, does it just foreclose?
Financial Information: Home: Owe approx $155k, worth approx $100k; Home Equity Line of credit: Owe $11k. Private school for kids is $6k a year. School Loans: Owe approx $70k, I realize I am stuck with these. Car: Owe $25k Credit Cards: Approx 8 cards at $25k Medical Bills: Approx $5k
We have $8k in the bank. One income, approx $90k a year. Married w/ 2 children.
hi frank,
as you want to get rid of the property only, i won't suggest you to go for a chapter 13 bankruptcy filing. you can, rather, apply for a short sale or a deed in lieu of foreclosure. in both these options, you will be able to sell off the property. however, in case of short sale, you will be liable for paying the deficient balance resulting from the sale of the property. in case of deed in lieu of foreclosure, you won't be liable for paying off the deficient balance.
as you want to get rid of the property only, i won't suggest you to go for a chapter 13 bankruptcy filing. you can, rather, apply for a short sale or a deed in lieu of foreclosure. in both these options, you will be able to sell off the property. however, in case of short sale, you will be liable for paying the deficient balance resulting from the sale of the property. in case of deed in lieu of foreclosure, you won't be liable for paying off the deficient balance.
Hi Frank!
Welcome to forums!
The fees and charges of the bankruptcy attorney will vary. If she is charging you $4k, then that must be her fees as well as the filing charges. If you file bankruptcy, you may get into trouble regarding that credit card of yours. You may not be able to use it for the time being when you're in bankruptcy filing. Nevertheless, you can clarify this with your bankruptcy attorney and sort out the matter. After you get a discharge from Chapter 13 bankruptcy filing, you need to wait for 1 year to qualify for a FHA loan to buy a home. If you want to qualify for a conventional loan, you need to wait for 2 years.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The fees and charges of the bankruptcy attorney will vary. If she is charging you $4k, then that must be her fees as well as the filing charges. If you file bankruptcy, you may get into trouble regarding that credit card of yours. You may not be able to use it for the time being when you're in bankruptcy filing. Nevertheless, you can clarify this with your bankruptcy attorney and sort out the matter. After you get a discharge from Chapter 13 bankruptcy filing, you need to wait for 1 year to qualify for a FHA loan to buy a home. If you want to qualify for a conventional loan, you need to wait for 2 years.
Feel free to ask if you've further queries.
Sussane