Complicated

[ORNV3]

This is a bit complicated... I'm pretty sure I know what I need to do. I'm just trying to figure out some of the details now. Any help/opinions would be great.

My home is in Nevada but I live in Oregon. I had to move last fall and decided to try and rent the house to stay current. Since then I've realized that the house is worth about half of what I owe on it and think it's insane to pay the full amount, and I can't afford it anyway.

My renters pay me $1000 a month but mortgage is $2300. I could pay the first every other month with the rental money.

I just found out that I will most likely be moving back to Nevada in about a year. If I could stay in the house for a while for $1000/month that would be great, if not that's okay too.

I'm trying to figure out what to do with the rental money. Should I use it to pay the first? If I keep current on the first will nothing really happen?

If I file BK but stay current on the first.... can I move back in when I move back to Nevada? I know that it would only be temp but I figured that I will have to pay for a rental somewhere anyway... so why not there?


I'm so confused!

[ProfessorShays]

Don't feel bad, so am I (in terms of suggesting a direction to head). I guess my question is why would you want to move back into the home, or maintain payments on the first, when the total liens against the home increase by $1,300 per month ($15,600/yr)? I guess the answer might be based upon how much underwater the home is now (fair market value - balance owed).

Please provide that information and I'll give you my thoughts.

Daniel

[mollysfolly]

Ornv you owe 308,000 and the house is probably worth 140-150 in todays market. I'll think you know a bk is the best for you as Ive seen your questions on the bk forum. You can still get a house as your fiance will b e able to put it in his name and you can go forward with your life and start a family and put a period to this part of your life. You can begin to rebuild your credit and learn from this and teach your fianace and others about your mistake. I'm pretty sure your second would continue to report or the debt collector would report for 6 years and then attemp to sue before the end of the SOL so it wont just go away even if you were not working while raising a family like you indicated in a previous post.
As far as the rent you are recieving I would stock up on things that atrustee would not object to or save it for a bk attorny or go buy that new car for yourself as you can use 489 dollars per month towards your exemption. As soon as you believe a nod is eminent I would not accept anymore money an I would return their security deposit to them and allow them to remain in the house, rent free, for as long as they wished kepping them fully informed of the situation at all times. I'm not sure how long WAMU will take to start the foreclosure process as each timeframe is different for eah lender.
When you declare bk is up to you as you can stall for quite sometime as I dont believe the second will sue immediately and most likely the first would wait The six months like they did with racoon. They will have to serve you and you can respond and or file an answer which costs around $125 which would buy you aound 6-8 months as the courts are backlogged. If you dont respond they can get a summary judgement and then a writ of garnishment for 25% of your wages about 2 weeks after the judgement. Of course my question to the lawyer tommorrow is is it better for credit recovery to bk before the foreclosure or after and what would I legally be resposible for if included in bk like sewer insurance and Hoa fees as I've heard some horror stories about be liable for things that ccurred to the house before the bank took back the property even after they surrendered the property, they sued to collect damages and it toothe bank over 12months to take back the property after their bk.

[ORNV3]

Agreed.... I just keep freaking out!

[ORNV3]

Good point,
I've talked to two different BK attorneys about this....

One said to just use the rental money to pay the first. They won't accept partial payment, so I could only pay them every other month. The payment for the first is about $1500 and I get about $1000 for the rent.

The other said to just open an account and keep all the rent money there and just hand it over to the BK trustee when I file BK.

I'm just trying to figure out what is the best option. I'm not going to spend the rent money... I don't need it for my normal living expenses.

I guess the whole point behind this particular post was to see if it would be a good idea to keep somewhat current on the first as long as I still have renters. If they move out then I'll just stop paying. I guess this would probably buy me some time. I was thinking that if the renters stay there for another year I could move back into the house when I have to move back to the area..... and maybe live there for a while for free while I find yet another job.

I wonder what the second would do if I was keeping somewhat current on the first... like paying it every other month.