Read my plan and tell me what you think...ALL OPINIONS WANTED!!

**Woody** · 02-23-2010, 11:59 AM

Ok, I’m looking for all opinions on my plan. Look it over and tell me what’s wrong with it, what won’t work, and how I should/could fix it. By the way, I hope this is no way insulting to people who are in a much worse situation than us; please understand that we consider ourselves very fortunate as we both have well paying, stable jobs. My thought is: the banksters got their bailout, so this is mine.
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My wife and I are strategically defaulting. We are currently 90 days late since we started in December of 2009. Let me preface this by saying we have no interest in a loan mod or trial as we are $200,000 underwater. I realize this is only going to prolong the inevitable, but that’s the point. We want to milk this for as long as possible…say 9 plus months (or more if possible).

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I figure if we do nothing, we have 6-7 months free rent (we’re already halfway there). At this point, I want to call the mortgage companies (Saxon and EMC) and tell them we cannot pay due to a change in employment situations. They will send paperwork for us to fill out. I will forget to send something, or send something back incomplete. I get an application for a HAMP and I don’t fill it out completely. They send it back again, I delay again. In the meantime, I don’t pay anything on either mortgage. I say to the companies that I really want a loan mod, but I’m lying. I don’t need to file for BK as we can pay all our other bills. We won’t be approved because our income is too high, but they don’t know that.

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So, by just filing out the paperwork….does that delay it enough? My understanding is that they can't forclose if you are applying for a HAMP, but is it true with a regular in-house mod application? Even though I don’t want to, should I make a payment in a few months just to delay it more, or will that money go elsewhere and I’m simply throwing it away?

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Finally, I don’t remember seeing this anywhere else on the forum. A lot of others who are doing this are also filing BK, so that changes things on my end. If this is another post/thread, please tell me where.

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Thanks again for everyone’s input and help. This site really has been a godsend to most of us, and I want to thank Moe for putting it together. I wish he wasn’t leaving, but only he knows what’s best for him, no one else. Gotta respect that.

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Woody

PS: If anyone is interested, I have a post going about my situation. It's 1/1/10--We Walk in Arizona.

**Maurice Bedard** · 02-23-2010, 12:56 PM

Pretty good plan Woody!

Let me see if I can help with some of your concerns here:

So, by just filing out the paperwork….does that delay it enough? My understanding is that they can't foreclose if you are applying for a HAMP, but is it true with a regular in-house mod application?

Please keep in mind that the HAMP is 110% voluntary and experience shows that they are exercising that right daily. But, yes, "if" they were to follow HAMP, the guidelines say they cant foreclose. But HAMP is like telling you you can't drink coffee in the morning, but there is no law saying you can't drink coffee. I assume, if you like coffee, if someone says you cant drink it, you will simply laugh and drink your coffee anyhow. Well, that is what is going on here in the mortgage and banking world. A lot of telling and a lot of doing whatever they want.

The contracts they have are with the investors who own the loan. That is the guidelines they should go by, but often they don't.

Even though I don’t want to, should I make a payment in a few months just to delay it more, or will that money go elsewhere and I’m simply throwing it away?

They will most likely not accept it. They know all the tricks, you just have to play poker with them like you have planned. You can try, but I assume they will no accept it.

Finally, I don’t remember seeing this anywhere else on the forum. A lot of others who are doing this are also filing BK, so that changes things on my end. If this is another post/thread, please tell me where.

You have to qualify to file and if you have income, you will most likely only qualify for a chapter 13 where you will be required to pay these debts on a installment plan through the courts. It's hard to walk, short sale or do anything when you can truly afford the home. Anyhow, I suggest you speak with a few attorneys about your tax and possible wage garnishment issues in your state.

Thanks again for everyone’s input and help. This site really has been a godsend to most of us, and I want to thank Moe for putting it together. I wish he wasn’t leaving, but only he knows what’s best for him, no one else. Gotta respect that.

Thanks so much Woody for the nice comments. It is very nice to come in here and see words like that. They get me motivated to keep helping and to continue my mission to help those on Main Street! I will still be around here, but placing a lot more focus on the job market and teaching out of work folks how to make money online.

Keep in mind that this, like life, is a game of poker and or a big casino. The odds are with the house, but the smart poker players can win big if they know how to play the game.

I wish you the best Woody and maybe some other members will have some input here for you. It seems like walking away is the new trend here.