Hey all, I am new here, but there seems to be great real world info sharing going on...I like that.
Brief overview, we purchased a shack on the water in an exclusive neighborhood in 2005, did some creative financing and construction along the way, and ended up with a beautiful piece of property and a laughable Option One mortgage..but we were going to refinance that away in a few months, no worries! Then hubby got laid off, and the bottom fell out of the market here, and we couldn't refinance. UH OH! Stuck! So we tried to stay afloat, we also had rental property that was vacant at the time, to help matters (and 2 little kids!)
Option one was impossible to deal with, changing terms at their own whim it seemed, I had a "friend" default on some credit that I had "lent" her, which let to my creditors implementing the "default" rate on all our accounts. I had, until this point, made all payments somehow. At 29% interest the minimum payments became unreal. We had 80K in credit accounts for mostly construction and materials (we didn't take a vacation for 10 yrs, lol) and 285k on the mortgage. I had it appraised at 350K in early 2005, but couldn't refinance in 2007 due to reduction of income, and market value.
We clearly could not sustain these payments and began to fall behind. We decided to explore our options..We did Hope Now, Credit counseling,attempted loan mods, bankruptcy counseling..all of whom agreed that Bankruptcy was probably our best option. We qualified for chapter 7, kept our vehicles and low value rental property, and moved out of our newest home. We walked away. Legally.Filed in 2008, figured we could buy again in a few years.
Welcome to yesterday, 10/20/2011. Received a letter stating that we were part of a settlement with Option One and the state of Mass. Predatory and discriminatory lending. Great. I no longer live at that address, I did not sell or refinance out of a mortgage with them, in fact, they never foreclosed. It has been 3 years. I have emotionally moved on. This property has been vacant and damaged over the last few years. Do I tell AHMSI to shove it when I get the packet next week? Or do I take the opportunity to hop back into a property at a good value? Who is responsible for the repairs to damages? I have not paid a tax, utility or insurance bill since I got my BK discharge in Jan '09, On the advice of my atty. I was advised I could be eligible for a conventional or FHA again after 2 (then the tune changed) to 3 years, which will be Jan 2012. But if Option One (or AHMSI) never unloaded the property, when, exactly does my 3 yr clock start? I would assume that the taxes and insurance, etc would be tacked on to my "modified" loan.
Thoughts, insight or advice welcome! I am waiting for the attorney general's office to call me back on these issues!