I'm trying to learn about the whole bankrupcty, foreclosure, loan modification process, but I have to admit....it's all pretty overwhelming. Especially when I'm trying to re-start my business at the same time!
I'm going to hopefully expedite the learning curve by asking you all to help me "think out loud" what my options are and how to KEEP MY HOMES!!!
Keep in mind that this is my first post and I've only now came across this AWESOMELY INFORMATIVE site last night. So I encourage you to ask me questions at any time to help me...help you...help me get through this. Strangely, I feel like I already have a bond with you guys, knowing that you're going through, if not, gone through the stressful time I'm experiencing. Ok, so onward with my problems....
My current financial situation monthly income (Self-employed):
- Recurring rental income: $2,100/month coming from "semi-rental" property, loan by BofA. I say "semi-rental" because I share the home with other by renting individual rooms out.
- Potential rental income: $1,100/month coming from "semi-rental" property, loan by IndyMac. I say "potential" rental income because I will only rent the rooms if I can do a loan mod and keep the house.
- Recurring income: $0/month I'm still in the process of re-building my business that went under back in '07. I'm not "officially" open for business yet.
- Ad hoc income: $500/month I'm not "officially" open, but I do have old clients from '07 that I continue to support. fyi, I'm a computer consultant.
- Flexible income: $400/month from mommy. Mommy said she can 100% help me for that amount. I want to do this without her help. But if push comes to shove, I can/do have access to this income.
My current financial situation monthly expenses:
Business expenses: $100/month
Note: I'm getting a lot of outside family help right now, so my expenses are at the bare minimum right now.
My current BofA loan terms as of 11/27/2009:
- Principal Balance: $343,735.57
- Original Loan amount: $337,250.00
- Margin: 3.250%
- Interest rate this month: 8.750%
- Remaining Term: 29 years, 3 months
- Past due amount: 37,028.52
- Fees due: $1,332.50
- Minimum monthly payment: $2129.57
Note: I'm behind by about 17 payments! Loan status is in "Pre-foreclosure" w/ no sale date set. Average depreciation in my area is 30%, so market value will be around $262,500 from the appraisal at time of purchase in '06.
My current IndyMac loan terms as of 12/16/09:
- Principal Balance: $594,157.41
- Interest rate this month: 7.750%
- Past due amount: approx $104,918
- Minimum monthly payment: $4,769.18
Note: I'm behind by about 22 payments!!! Loan status is in "Active" foreclosure with a sale date set for 1/29/10! Once again, 30% depreciation in value, market value for this home is approx $630,000 from the apraisal at time of refinance in '07.
I'm in the process of filing chapter 7 bankrupcty. I was hoping on doing a loan mod first, then file bankrupcty, then get my life back in order. But due to the sale date set for the IndyMac house, this might flip the script and I might have to file bankruptcy to stop the sale from happening. That will hopefully by me time to get my business up and increase my income. Which i'm hoping will help get approved for a loan modification.
I'm filing bankrupcty because I've got about $90,000 in credit card, car loans, and other misc bad debts that I simply can't settle. But if I need to file chapter 7 to save my homes, I will!
- I don't have any '06, '07, '08 tax returns. How badly do I need them?
My question to you:
- How can I stop the auction date from happening?
- How can I save both homes?
- How can I properly complete a loan mod application with income/expense figures that will give me the highes likelyhood of approval?
- I'm not sure whether to overstate or understate my income because I do have a lot of flexibility.
- And I'm not sure whether to overstate or understate my expenses for the same reasons.
- Is the timeline sufficient to complete everything in time to save the homes?
- I have two homes, and I'd like to keep both. BUT, if I can't then either one could be my primary residence. When doing the loan mod for each lender, should I treat that loan as if it was my primary residence?
So, that's my current situation. All you experts out there, please assist in any way you can. I am at the mercy of this forum.