Money Bankruptcy - anyone gone through it? - Page 2

Dayze · 09-16-2009, 05:56 PM

well, after a 12 month fight with our mortgage company and creditors; exhausting all savings; cashing out 401ks; stopping 401k contributions.....

it appears the end is near. We are being foreclosed upon 10/15/09.

our lender has being jerking us around for 5 months with a loan modification and I was informed today by the VA that even if the mod is approved, it will likely be a very miminal impact to our monthly commitment/cashflow etc.

Anyone have any suggestions, opinions on the matter? It's really tough right now.

Thanks guys/gals.

Dayze

**Buehler445** · 09-16-2009, 10:25 PM

I don't know anything about your situation, but good luck you'll need it.

If I were you, I'd liquidate anything of any value at all to get ahead on your payments.

You mentioned a car, I'd start there.

Seriously, man, good luck.
Posted via Mobile Device

L.A. Chieffan · 09-16-2009, 10:27 PM

Go to Vegas and put it all on black and double that shit BABIEEE!!!!!!!!!! If you dont win theres plenty of cheap houses there too I hear.

Seriously, that sucks bro I hope you guys make it out ok

mdstu · 09-16-2009, 10:35 PM

How do Bankruptcies work anyways?
Do the loan companies just have to eat the debt?
Or does the government step in and pay off the debt?

BWillie · 09-16-2009, 11:47 PM

Have you looked into renting a room out in your home?

Dayze · 09-17-2009, 10:38 AM

I think we’re exploring two options.

1. Getting current with our mortgage; it’ll be a damn miracle if we can get the $ together to get current; then subsequent payments will require possible 2nd job/selling stuff etc. Normal stuff to day when trying to save a house So if we go this route, we’ll have zero cash; everything will be allocated simply to stay in the house.
2. I’m trying to find out if my VA loan insures the vendor against negative equity. Ie; if I owe (for math purposes) 100, and they foreclose on it for 50….can they come after me for the 50: or have they been covered by that through the VA
a. If they have been covered,
i. it comes down to do we want to stay and not have a nickel to our name cash wise (because we would’ve given it all to the bank to get current)
ii. I’m half tempted to tell them to get bent after all the crap they’ve put us through. Give them my final offer and if they don’t want to take it, F em. I’ll move and they can sit on the house for a year. I’ll deal with the foreclosure and build credit again eventually.
iii. Search for a FSBO/Contract for Deed; or a new builder Contract for deed. Live there, rebuild credit; buy the house in a 5 year term.
b. If that piece is not covered, then option one is the best bet. Avoid foreclosure and any judgments for outstanding fees, negative equity.

We’re talking with an attorney tonight to review etc. If Option 2b is the case, then I hope he can submit something that can postpone the sale/foreclosure until we can get a determination on what the loan mod will be.

Hell…I’ve heard that sometimes after the penalties etc that the loan mod doesn’t even reduce the payment; in which case we’d be boned. And if we’re boned and have to leave, I don’t want to have given the bank our last chunk of cash.

**MahiMike** · 09-17-2009, 10:46 AM

Did you ask your mortgage company if they'd take a deed-in-lieu of foreclosure?

CaliforniaChief · 09-17-2009, 10:59 AM

Dayze, I'm so sorry to hear of your situation. I, like others, admire your desire to make it work out and do the best you can to save your home. For what it's worth, I'll keep you and your family in my prayers.

I don't know if the situation applies to you or not, but I do have a friend who is in the business of helping people get banks to approve short sales on their homes. One situation in particular had a family looking to modify their loan but they would only get a 100 dollar a month break (from $2700 to $2600), which did them no good. Plus if they modified the loan they would have still had the debt hanging over their head.

He worked out a deal where they did a short sale, which an investor purchased for $110,000. He then worked out an arrangement with the investor to rent the house back to the former owners for a rent of $1,500 a month. Now they can make their payments, stay in their homes, and actually set themselves up to get back in the market again in about 3 years. If they keep their record clean and stay on time with payments, they could potentially buy back the house for $175,000 and STILL have a lower payment than they did before, not be leveraged up to their heads in debt, and stay in their house.

Obviously that's a tricky scenario, but there's always hope.

Dayze · 09-17-2009, 11:04 AM

not yet; I want to wait to see what the loan mod out come is. if they decline it, then that might be a possibility; from what I understand the DIL (if agreed by the lender) would absolve you from any defficiency? cheaper for them to cut their losses than go through with foreclosure;etc.

if they decline the mod we will have to make the decision to liquidate all remaining cash; or ask for DIL; if they decline the DIL, then it's foreclosure.

Dayze · 09-17-2009, 11:05 AM

Quote:

Originally Posted by CaliforniaChief

Dayze, I'm so sorry to hear of your situation. I, like others, admire your desire to make it work out and do the best you can to save your home. For what it's worth, I'll keep you and your family in my prayers.

I don't know if the situation applies to you or not, but I do have a friend who is in the business of helping people get banks to approve short sales on their homes. One situation in particular had a family looking to modify their loan but they would only get a 100 dollar a month break (from $2700 to $2600), which did them no good. Plus if they modified the loan they would have still had the debt hanging over their head.

He worked out a deal where they did a short sale, which an investor purchased for $110,000. He then worked out an arrangement with the investor to rent the house back to the former owners for a rent of $1,500 a month. Now they can make their payments, stay in their homes, and actually set themselves up to get back in the market again in about 3 years. If they keep their record clean and stay on time with payments, they could potentially buy back the house for $175,000 and STILL have a lower payment than they did before, not be leveraged up to their heads in debt, and stay in their house.

Obviously that's a tricky scenario, but there's always hope.

that's an interesting scenario to consider. that's something else I should probably look into. Thanks!

ferrarispider95 · 09-17-2009, 11:06 AM

$1500 rent on a $110,000 house....DAMN...sign me up for a few of those.

How in the hell where there payments 2700 a month. Even they paid $200,000+, I still couldn't see getting close to those payment

Quote:

Originally Posted by CaliforniaChief

Dayze, I'm so sorry to hear of your situation. I, like others, admire your desire to make it work out and do the best you can to save your home. For what it's worth, I'll keep you and your family in my prayers.

I don't know if the situation applies to you or not, but I do have a friend who is in the business of helping people get banks to approve short sales on their homes. One situation in particular had a family looking to modify their loan but they would only get a 100 dollar a month break (from $2700 to $2600), which did them no good. Plus if they modified the loan they would have still had the debt hanging over their head.

He worked out a deal where they did a short sale, which an investor purchased for $110,000. He then worked out an arrangement with the investor to rent the house back to the former owners for a rent of $1,500 a month. Now they can make their payments, stay in their homes, and actually set themselves up to get back in the market again in about 3 years. If they keep their record clean and stay on time with payments, they could potentially buy back the house for $175,000 and STILL have a lower payment than they did before, not be leveraged up to their heads in debt, and stay in their house.

Obviously that's a tricky scenario, but there's always hope.

PunkinDrublic · 09-17-2009, 11:06 AM

I'm often called morally bankrupt whatever that means.

Dayze · 09-17-2009, 11:18 AM

Quote:

Originally Posted by PunkinDrublic

I'm often called morally bankrupt whatever that means.

sometimes that's a good debt to have.

I know I've walked that line.

PunkinDrublic · 09-17-2009, 11:33 AM

Find a life sized dummy. Dress it up like yourself in your clothing, drive it off a cliff so that the dummy is burned beyond recognition. Have your wife use the insurance money collected to pay off your debts. Assume a new identity. It's quite simple really.

Dayze · 09-17-2009, 11:34 AM

Quote:

Originally Posted by PunkinDrublic

Find a life sized dummy. Dress it up like yourself in your clothing, drive it off a cliff so that the dummy is burned beyond recognition. Have your wife use the insurance money collected to pay off your debts. Assume a new identity. It's quite simple really.

Brilliant!

Simplex3 · 09-17-2009, 12:06 PM

Too bad you cashed in the 401k, I don't think they would be able to go after than in a bankruptcy. Depending on your state you may be able to get out with the house and one car as well.

Good luck.

09-16-2009, 05:56 PM
Dayze Resident Glue Sniffer Join Date: Nov 2003 Casino cash: $1709358	Bankruptcy - anyone gone through it? well, after a 12 month fight with our mortgage company and creditors; exhausting all savings; cashing out 401ks; stopping 401k contributions..... it appears the end is near. We are being foreclosed upon 10/15/09. our lender has being jerking us around for 5 months with a loan modification and I was informed today by the VA that even if the mod is approved, it will likely be a very miminal impact to our monthly commitment/cashflow etc. Anyone have any suggestions, opinions on the matter? It's really tough right now. Thanks guys/gals. Dayze
Posts: 37,463

09-16-2009, 10:25 PM	#16
Buehler445 Supporter Join Date: Apr 2007 Location: Scott City KS Casino cash: $-1625266	I don't know anything about your situation, but good luck you'll need it. If I were you, I'd liquidate anything of any value at all to get ahead on your payments. You mentioned a car, I'd start there. Seriously, man, good luck. Posted via Mobile Device
Posts: 60,031

09-16-2009, 10:27 PM	#17
L.A. Chieffan PLAY GOOD FOOTBALL Join Date: Aug 2006 Location: American Gardens Building Casino cash: $2688654	Go to Vegas and put it all on black and double that shit BABIEEE!!!!!!!!!! If you dont win theres plenty of cheap houses there too I hear. Seriously, that sucks bro I hope you guys make it out ok
Posts: 17,400

09-16-2009, 10:35 PM	#18
mdstu Let's get a snack Join Date: Apr 2002 Location: Cincinnati Casino cash: $-2251099	How do Bankruptcies work anyways? Do the loan companies just have to eat the debt? Or does the government step in and pay off the debt?
Posts: 1,390

09-16-2009, 11:47 PM	#19
BWillie Are you ready to Rumble? Join Date: Apr 2006 Casino cash: $-1498759	Have you looked into renting a room out in your home?
Posts: 52,945

09-17-2009, 10:38 AM	#20
Dayze Resident Glue Sniffer Join Date: Nov 2003 Casino cash: $1709358	I think we’re exploring two options. 1. Getting current with our mortgage; it’ll be a damn miracle if we can get the $ together to get current; then subsequent payments will require possible 2nd job/selling stuff etc. Normal stuff to day when trying to save a house So if we go this route, we’ll have zero cash; everything will be allocated simply to stay in the house. 2. I’m trying to find out if my VA loan insures the vendor against negative equity. Ie; if I owe (for math purposes) 100, and they foreclose on it for 50….can they come after me for the 50: or have they been covered by that through the VA a. If they have been covered, i. it comes down to do we want to stay and not have a nickel to our name cash wise (because we would’ve given it all to the bank to get current) ii. I’m half tempted to tell them to get bent after all the crap they’ve put us through. Give them my final offer and if they don’t want to take it, F em. I’ll move and they can sit on the house for a year. I’ll deal with the foreclosure and build credit again eventually. iii. Search for a FSBO/Contract for Deed; or a new builder Contract for deed. Live there, rebuild credit; buy the house in a 5 year term. b. If that piece is not covered, then option one is the best bet. Avoid foreclosure and any judgments for outstanding fees, negative equity. We’re talking with an attorney tonight to review etc. If Option 2b is the case, then I hope he can submit something that can postpone the sale/foreclosure until we can get a determination on what the loan mod will be. Hell…I’ve heard that sometimes after the penalties etc that the loan mod doesn’t even reduce the payment; in which case we’d be boned. And if we’re boned and have to leave, I don’t want to have given the bank our last chunk of cash. __________________ Life is 99% inspiration, 1% Perspiration, and 1% Attention to Detial. RIP & Godspeed: Saccoppo Lonewolf Ed Fire Me Boy
Posts: 37,463

09-17-2009, 10:46 AM	#21
MahiMike He's Mahomie! Join Date: Aug 2001 Location: Jax, FL Casino cash: $10023443	Did you ask your mortgage company if they'd take a deed-in-lieu of foreclosure?
Posts: 17,387

09-17-2009, 10:59 AM	#22
CaliforniaChief #RIPAce Join Date: Jan 2009 Location: So Cal Casino cash: $10505899	Dayze, I'm so sorry to hear of your situation. I, like others, admire your desire to make it work out and do the best you can to save your home. For what it's worth, I'll keep you and your family in my prayers. I don't know if the situation applies to you or not, but I do have a friend who is in the business of helping people get banks to approve short sales on their homes. One situation in particular had a family looking to modify their loan but they would only get a 100 dollar a month break (from $2700 to $2600), which did them no good. Plus if they modified the loan they would have still had the debt hanging over their head. He worked out a deal where they did a short sale, which an investor purchased for $110,000. He then worked out an arrangement with the investor to rent the house back to the former owners for a rent of $1,500 a month. Now they can make their payments, stay in their homes, and actually set themselves up to get back in the market again in about 3 years. If they keep their record clean and stay on time with payments, they could potentially buy back the house for $175,000 and STILL have a lower payment than they did before, not be leveraged up to their heads in debt, and stay in their house. Obviously that's a tricky scenario, but there's always hope.
Posts: 17,471

09-17-2009, 11:04 AM	#23
Dayze Resident Glue Sniffer Join Date: Nov 2003 Casino cash: $1709358	not yet; I want to wait to see what the loan mod out come is. if they decline it, then that might be a possibility; from what I understand the DIL (if agreed by the lender) would absolve you from any defficiency? cheaper for them to cut their losses than go through with foreclosure;etc. if they decline the mod we will have to make the decision to liquidate all remaining cash; or ask for DIL; if they decline the DIL, then it's foreclosure. __________________ Life is 99% inspiration, 1% Perspiration, and 1% Attention to Detial. RIP & Godspeed: Saccoppo Lonewolf Ed Fire Me Boy
Posts: 37,463

09-17-2009, 11:06 AM	#26
PunkinDrublic Stay down bitch! Join Date: Jun 2001 Location: Plano, TX Casino cash: $4340670	I'm often called morally bankrupt whatever that means. __________________ Disappointing my parents since 1976
Posts: 9,555

09-17-2009, 11:33 AM	#28
PunkinDrublic Stay down bitch! Join Date: Jun 2001 Location: Plano, TX Casino cash: $4340670	Find a life sized dummy. Dress it up like yourself in your clothing, drive it off a cliff so that the dummy is burned beyond recognition. Have your wife use the insurance money collected to pay off your debts. Assume a new identity. It's quite simple really. __________________ Disappointing my parents since 1976
Posts: 9,555

09-17-2009, 12:06 PM	#30
Simplex3 MVP Join Date: Sep 2003 Casino cash: $10004900	Too bad you cashed in the 401k, I don't think they would be able to go after than in a bankruptcy. Depending on your state you may be able to get out with the house and one car as well. Good luck.
Posts: 28,527