midwestmomof4
newbie
Reged: 01/12/06
Posts: 27
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Due to lack of CS from NCP it looks like we will be foreclosing on the home (which I was awarded with 0 equity but his name is still on.) I also have a home equity loan to the tune of about $25,000 (which his name is also on.) I cannot foreclose on or surrender the home and still make the home eq. loan payments, especially since I have no idea when I will receive any support from him. Right now I can afford to live no where. What is it considered if I default on the home equity loan? Is it a foreclosure? Or do I have to file BK? I have only a little other debt; most of it is tied up in the house which leaves it with about $15,000 in negative equity. I don't know what say X has in the matter because he does not intend to take over the home and so far has no plans of going back to work or supporting his 3 children. I don't know what my options are. Three months ago I was approved to refi the home in my own name but they were waiting for proof of receipt of CS, which I never received. I need a place to live!
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MamaKitty
Pooh-Bah
Reged: 01/30/06
Posts: 1632
Loc: California
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Bad MamaKitty.
I have no advice for you. In fact, I'm almost in the same situation as you.
S*cks, doesn't it?
c
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jaiye
old hand
Reged: 10/27/05
Posts: 860
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I think you need to talk to a lawyer. If you have very little other debt then you probably won't qualify for BK because keeping the house you wouldn't be relieved of much debt.
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needy
enthusiast
Reged: 01/18/06
Posts: 312
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why is there no equity? Houses have geberally gone up in value. Get a home appraisal and try to sell the home,go to welfare if you have no money and 4 kids.
You can just live there until the mortgage company forecloses. Bare in mind both of you are resonsible for any debt the mortgage company doesn't get from you abd legally you are both responsible together and alone for the entire debts your names are on. If your name is on the bills than be careful what you do cause at the very least,it will blemish your credit for years.
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midwestmomof4
newbie
Reged: 01/12/06
Posts: 27
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There is no equity because there is a home equity loan on it' we are about $15000 in the red plus whatever it would cost to sell. If I sold, I would have no place to live since I am short $1200 a month w/out his CS. The good news is that today in court the judge ordered us both to use our tax refunds to catch up on the arrearage. For now we are able to stay here. How long depends on when he goes back to work and if they let him have child support reduced, as he requested.
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needy
enthusiast
Reged: 01/18/06
Posts: 312
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good luck
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fathersday
enthusiast
Reged: 06/06/05
Posts: 308
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Quote:
There is no equity because there is a home equity loan on it' we are about $15000 in the red plus whatever it would cost to sell. If I sold, I would have no place to live since I am short $1200 a month w/out his CS. The good news is that today in court the judge ordered us both to use our tax refunds to catch up on the arrearage. For now we are able to stay here. How long depends on when he goes back to work and if they let him have child support reduced, as he requested.
You need to get in touch with someone who can work with you on a "short sale". Bank agrees to do it for less than what is owed, but still more than they would get in a foreclosure.
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MamaKitty
Pooh-Bah
Reged: 01/30/06
Posts: 1632
Loc: California
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Can you explain a 'short sale' a little more? The bank buys it back for less than is owed? What happens to the difference? And how does that differ from a foreclosure.
An example using dollar amounts would make it easier to understand.
c
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fathersday
enthusiast
Reged: 06/06/05
Posts: 308
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http://www.mortgagenewsdaily.com/752005_Real_Estate_Short_Sale.asp
This page somewhat explains it, along with other possible options.
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Simply_me
enthusiast
Reged: 02/13/06
Posts: 358
Loc: Florida
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The same thing happened to me ....my ex stopped paying CS..and so I filed BR.....yes it stays on your credit for 10 yrs....forclosure....20yrs.....so really think about it before you let them forclose. Try to sell your house in a short sale or to one of those....you would be surprised what your house if probably worth....my house that i have now gained 40k equity in one yr.
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fathersday
enthusiast
Reged: 06/06/05
Posts: 308
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You can still get a bankruptcy off your credit report. It's a lot of work though.
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loric
recently joined
Reged: 05/16/06
Posts: 2
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Depends on what you file... you can only file Ch 13 if the court agrees the repayment plan is feasible and if you don't have the money to pay the arrearage and your ongoing regular mortgage payments (both the 1st and 2nd lien) you won't get very far with the means testing then. A CH 7 sounds like it would fit better if you have any other assets to pay off a portion of the debt, reaffirm the mortgage and start your slate clean. It will stop any foreclosure and attempts to collect the debt. You also have to get the courts permission to enter into any new debt after you file... the short sale has to be reasonable for the mortgage company but they are losing money daily on the property due to having to pay their investors who backed your loan and they are now in the red sitting on the loan so they will probably be willing to look at it usually in the Foreclosure process before it goes to public sale.
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