Posted on: 13th Feb, 2011 07:17 pm
Hi all - with regret I filed CH7 April 2008 and also had to foreclose on a rental property. Saying that FHA will not work with me until 2yrs out of BK and 3yrs for the foreclosure. I think Convential is 5yrs.
Anyway, April this year we can finally either refi on our house or purchase a different house. I am at 9.25% and the mortgage is killing me. I am open to a refi but prefer to move closer to work and look for a house I can hang my hat and live there for some time.
I am lost and confused! If I refi I am screwed because homes nearby are selling for almost $100K less than I owe. Basically these homes were foreclosed and purchased by investors. Homes in my block average $245-$290 yet the foreclosed ones sold around $160-$190. So how can I refi when I am sure the value of my home is not what it was 6yrs ago. My home was appraised in 2005 for $290,000.
Second question, I would prefer to move and look for a different home but after reading above, I will take a hit if I put it on the market. I would be suprised if I was not offered $100K less than what I owe. How the heck would I eat that? I couldn't afford two mortgages so that also is a no win. And despite my CH7 BK no longer reports to my credit, my name is still on the title so even though the BK papers say I am not financially obligated to pay my mortgage, the title holds my name. OH and lets not talk about renting out my home. I need to show proof that I have been renting for something like 3 or 5 years before FHA would even work with me.
Sorry for the novel. I just am not sure what to do and I prefer to not talk with my friends or colleagues because this is pretty personal. And what better then to discuss with you - hoping someone was in the same boat.
So I would love to have the chance moving to a new home but also would love to get the 9.25% off my back. My mortgage is with GMAC.
Anyway, April this year we can finally either refi on our house or purchase a different house. I am at 9.25% and the mortgage is killing me. I am open to a refi but prefer to move closer to work and look for a house I can hang my hat and live there for some time.
I am lost and confused! If I refi I am screwed because homes nearby are selling for almost $100K less than I owe. Basically these homes were foreclosed and purchased by investors. Homes in my block average $245-$290 yet the foreclosed ones sold around $160-$190. So how can I refi when I am sure the value of my home is not what it was 6yrs ago. My home was appraised in 2005 for $290,000.
Second question, I would prefer to move and look for a different home but after reading above, I will take a hit if I put it on the market. I would be suprised if I was not offered $100K less than what I owe. How the heck would I eat that? I couldn't afford two mortgages so that also is a no win. And despite my CH7 BK no longer reports to my credit, my name is still on the title so even though the BK papers say I am not financially obligated to pay my mortgage, the title holds my name. OH and lets not talk about renting out my home. I need to show proof that I have been renting for something like 3 or 5 years before FHA would even work with me.
Sorry for the novel. I just am not sure what to do and I prefer to not talk with my friends or colleagues because this is pretty personal. And what better then to discuss with you - hoping someone was in the same boat.
So I would love to have the chance moving to a new home but also would love to get the 9.25% off my back. My mortgage is with GMAC.
Hi TReisdorf,
As you filed bankruptcy and got it discharged, you're not personally liable for the mortgage. You can surrender the property to the lender who can sell it off to recover the dues. Unless the property is sold off, you won't be able to remove your name from the property deed. Once the property is sold off, you will be able to get a new mortgage in your name to buy a new property.
As you filed bankruptcy and got it discharged, you're not personally liable for the mortgage. You can surrender the property to the lender who can sell it off to recover the dues. Unless the property is sold off, you won't be able to remove your name from the property deed. Once the property is sold off, you will be able to get a new mortgage in your name to buy a new property.
When you say "surrender the property" is that the same as letting it go into foreclosure, sheriff sale, redemption period, etc?
Or are you describing a Short Sale?
Sorry for my lack-thereof knowledge here :-)
Or are you describing a Short Sale?
Sorry for my lack-thereof knowledge here :-)
Hi TReisdorf!
Welcome to forums!
Surrender the property means to transfer the property to the lender who will sell it off in order to recover his balance amount. Normally, the lender will foreclose the property in order to recover the dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Surrender the property means to transfer the property to the lender who will sell it off in order to recover his balance amount. Normally, the lender will foreclose the property in order to recover the dues.
Feel free to ask if you've further queries.
Sussane
If you surrender the home - the clock starts all over and it will be another 3 years before you will be eligible.
You need to look at a loan modification as it is the only thing that will keep you a homeowner and get you a lower payment any time soon.
They are a pain to get but worth a shot
B
You need to look at a loan modification as it is the only thing that will keep you a homeowner and get you a lower payment any time soon.
They are a pain to get but worth a shot
B
Thank you - I had a hunch if I let the home go - the foreclosure clock starts ticking again and I need to sit for 3 years before FHA will look at me.
In April I will try my best to do a refi and hope they can refi my home despite other homes in the area are going for next to none.
One would think if a homeowner wants to refi then the intentions are there they want to stay. But because of the market, those homes that are causing havoc force my appraisal to not happen. Hence I fall into the same hole they did, hence my home now being a disease like the others.
Sorry if I am a little pessimistic but homeownership just sucks when you want to stay yet "diseased" homes in the area do not allow me to get what I want.
Like I said, my home appraised in 2005 for $290K and my neighbor foreclosed his and was sold for $160K. Uggh!
Lets hope a refi or loan mod works for me. I need to get that 9.25 down!!
Thanks again for your reply! And sorry for the attitude! I either try a refi, continue paying the 9.25 or walk away and rent to own for 3 yrs :-)
In April I will try my best to do a refi and hope they can refi my home despite other homes in the area are going for next to none.
One would think if a homeowner wants to refi then the intentions are there they want to stay. But because of the market, those homes that are causing havoc force my appraisal to not happen. Hence I fall into the same hole they did, hence my home now being a disease like the others.
Sorry if I am a little pessimistic but homeownership just sucks when you want to stay yet "diseased" homes in the area do not allow me to get what I want.
Like I said, my home appraised in 2005 for $290K and my neighbor foreclosed his and was sold for $160K. Uggh!
Lets hope a refi or loan mod works for me. I need to get that 9.25 down!!
Thanks again for your reply! And sorry for the attitude! I either try a refi, continue paying the 9.25 or walk away and rent to own for 3 yrs :-)