willingtocope Posted December 2, 2004 Report Share Posted December 2, 2004 Okay, quick refresher. Bk 7 discharge in May, Bank holding 1st and 3rd mortgage on house filed for foreclosure. Our attorney has delayed. Not certain what happened to 2nd mortgage...they may have been satisfied with company receivables. No tax liens as yet. Didn't reaffirm on mortgages because we're unemployed. Anyway....MAY, repeat MAY, have a job in IN...we're currently in OH. I'll do that drive there monday come home friday thing for awhile, but could be long term so may need to move there.What's the best plan for dealing with house in Ohio? Just walk away and let the bank foreclose, or try to salvage the place and sell it ourselves? Houses in our area sell very slowly...!st and 3rd mortgages total about $210K...tax appraised at $232k, so at least on paper there is some equity. Possilbe new job would pay enough to cover mortgage payments in the $1800 / month or so range. Living expenses in IN will be per diemed for awhile.If we walk away, we don't have a mortgage payment, but I bet that would make getting another house there really tough.Opinions? Link to comment Share on other sites More sharing options...
amortgageman Posted December 3, 2004 Report Share Posted December 3, 2004 Willingtocope,Being a Hoosier won't be so bad, and $1,800/ mo will get you plenty, plenty of a house. Going to send up some prayers for you that you are able to get that job. I know you have been through the most unfortunate of times, and you are more than deserving.I would definitely side with trying to sell your house as soon as possible. If the home you currently have goes all the way through foreclosure, then the home will need to be sold before you can have much access to being able to purchase again. That is, most lenders will judge your foreclosure date, and the seasoning of the foreclosure by the date that the home is actually sold, and the foreclosure settled. In a slow real estate market, that could possibly take a year or more. Might as well get the home listed and try to sell the thing before it is too late. This can help you control any deficit in the settlement, as well as possibly getting the aging behind you to being able to purchase again.Then again, for now, with the BK/ foreclosure process, and no employment, staying in this house at least relieves of any rent or mortgage payments, so waiting until you are employed to pay rent is nt such a bad idea. Your road back to homeownership, will naturally be a two year plan, while you get the employment seasoning back, and if timed right, the foreclosure will have less of an effect with more aging (2 years also). Link to comment Share on other sites More sharing options...
Recovering Attorney Posted December 3, 2004 Report Share Posted December 3, 2004 I would try to sell it on the open market. If you have a willing buyer, you may be able to use that to negotiate with the mortgagees, at least to get them to discontinue the foreclosure action Link to comment Share on other sites More sharing options...
willingtocope Posted December 3, 2004 Author Report Share Posted December 3, 2004 Thanks for advice guys. At the moment, I'm gonna just sit tight until I get an actual job...then call the mortgage holders to see if they'll back off the "attempted" foreclosure to see if we can sell it. Can't really do anything until I solve the income problem.So...to recap...unless I reaffirm on the current house, and repair the mortgages with the current mortgage holder(s)...BK 7, sell the house before foreclosure = 2 year wait before another house...BK7, and Foreclosure = 4 years wait before another house....Bottom line, best plan is to reup the existing mortgages...at least that gets me back building equity the fastest. Link to comment Share on other sites More sharing options...
amortgageman Posted December 3, 2004 Report Share Posted December 3, 2004 Actually, the two year wait is going to be more towards building a two year work history. Otherwise you will be explaining a "gap in employment." That can sometimes become an obstacle. The foreclosure will be based on the actual date the property is eventually sold or settled, although there are a couple of lenders that may take the BK discharge (your last obligation) as the date. Seasoning would begin at that time.BK is not really that much of an issue, as long as the credit scores are there. At the moment, I'm gonna just sit tight until I get an actual job...then call the mortgage holders to see if they'll back off the "attempted" foreclosure to see if we can sell it. Can't really do anything until I solve the income problem. You may want to look into a land contract or other type of option to purchase with an agreed to sale price so that you can gain some on equity. Just make sure to pay with checks (never can stress this enough), and then refinance (which may not require 100% financing, thus easier approval and better interest rates, since equity is there).Does this help to clarify? Link to comment Share on other sites More sharing options...
willingtocope Posted December 3, 2004 Author Report Share Posted December 3, 2004 Understood. Thanks.Actually, the "gap in employment" may not be an issue...I've actually been self-employed. Company has shown some small revenue, but I've not taken any salary...revenue went to paying employee benefits (mine). Not sure if that helps... Link to comment Share on other sites More sharing options...
amortgageman Posted December 4, 2004 Report Share Posted December 4, 2004 That will certainly help matters. I don't think it makes much difference whether you are making money or not, the lender just wants to know that you have a job. Any business licenses, advertising (phone book listings etc.), business realtionship referrals, to document the business.Be careful on the taxes though, because writing the business as a loss on income taxes may be detrimental when debt to income qualifications are used. Strategiacally filing income taxes and earned income credits may be able offset any self employed income taxes you wouls have to pay. Link to comment Share on other sites More sharing options...
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