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2 Bumps

What would you do?

We just filed Bankruptcy. So far our house is not on it. We owe around $275, including the 2nd morgtage. The house is worth MAYBE $225.
I want to do a short sale, or just walk from it, rent a house untill our credit improves and buy a cheaper house. Everything is SO much cheaper now than it was when we bought. It makes me so mad. My GF filed bankruptcy and less than 5 years later bought a house. It didn't seem to affect her that bad at all. I want out from underneath this house payment that is so big, over half of our income. What would you do?

 
Anonymous

Asked by Anonymous at 4:29 PM on Mar. 25, 2011 in Money & Work

This question is closed.
Answers (7)
  • Have you talked to a Bankruptcy attorney yet? There are 2 different types of Bankruptcy- Ch 13 where the courts consolidate & lower all your monthly payemnts to all your creditors. Chapter 7 wipes out most debt except for things like student loans. Both will be on your credit report for 10 yrs. If you call your local bar assoc. you can usually get a free or low cost consultation. He/She may be able to talk to the bank on your behalf. They seem to listen better when a lawyer gets involved. And let's face it, some $ is better than none at all! Hope that helps. GL :)
    mrsmom110

    Answer by mrsmom110 at 4:35 PM on Mar. 25, 2011

  • Your doing it backwards. You short sale or foreclose, then file BK. The bank will come back at you for the balance. If you file BK now, you may not be able to file it again later.
    Candi1024

    Answer by Candi1024 at 4:40 PM on Mar. 25, 2011

  • The attorney should be able to tell you about BK laws. Could you file again in a year if you foreclose and the bank comes after you for 100k? Why would you file BK if you can't afford the house you are in, yet not include the house? It makes no sense.
    Candi1024

    Answer by Candi1024 at 4:47 PM on Mar. 25, 2011

  • Definitely try a short sale first.
    mamatel

    Answer by mamatel at 4:36 PM on Mar. 25, 2011

  • Oh ya, and before we filed for Bankruptcy we tried to get the Mortgage company to work with us on the payment, b/c we couldn't afford it anymore. They would not do ANYTHING to help, even though they got bailout money for that very reason. We still don't know if they will work with us to lower the payment. So confused!
    Anonymous

    Comment by Anonymous (original poster) at 4:31 PM on Mar. 25, 2011

  • Yes the BK is almost over. THe attorney doesn't really have any advice, it's a personal decision.
    Anonymous

    Comment by Anonymous (original poster) at 4:41 PM on Mar. 25, 2011

  • Because my dh really loves this house and wants to keep it. He thinks we can afford it without all the other debt but it's still too tight for me!
    Anonymous

    Comment by Anonymous (original poster) at 4:49 PM on Mar. 25, 2011

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