I've been reading over this forum for quite some time and have found valuable info and appreciate all the quick responses that are given. Well here is my situation.
2005: Purchase house in SoCal for $365,000 (80/20)
2006: Refi'd to get lower rate, CW insisted on putting c.c. bills into loan with $5,000 cash back to "make it work" $380,00 1st $46,000 2nd.
Fast foward to today. Our house is now worth approx. $215k and with the stress of credit cards, cars and spouse unable to acquire work at this time we have found ch.7 BK as our best means to get a fresh start in life. We have contacted an attorney and he states that a ch. 7 will go through as long as we do not include the home in our BK, because of my income and passing the means test.
My question is, if we get caught up on our mortgage, file ch.7 what options do we have afterwards? Stay with our house and current mortgage..apply for modification...or DIL or foreclosure if all else fails?
Right now we are leaning towards letting the house go after the BK but not sure if it is now a recourse loan or if the BK would protect us. Any and all insight and help is greatly appreciated. Thanks!