Alright - Could I buy my house back at auction.
My house is worth between $350k and 400k. The 1st is $396k and the 2nd is $47k. I have stopped paying my 2nd in hopes to negotiate. BUT, I started thinking. I filed chapter 7 and was discharged in Oct 2009. Did not reaffirm my mortgage. I could settle my 2nd(maybe), but why not let the house foreclose and go to auction. In Oct 2011, that will be 2 years from discharge and my credit will be in the High 600's or low 700's. I can get financed to buy back the property at $250-$350 and have 20% to put down. Does anyone see any flaws? The foreclosure will not affect my credit because the 2 mortgage companies cannot report any credit on me due to the bankruptcy discharge. Could there possibly be a public record of the foreclosure that might reduce my credit? Then again, I could close on the house prior to the public record posting. I mean, this puts me in the drivers seat. I can put a little effort into trying the mod just to extend some free rent.
PLEASE LET ME KNOW IF THERE IS ANY FLAWS IN MY LOGIC!!!