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I don't know how much your mortgage, taxes and insurance are but they have to be more than $1700. And in any case, what's wrong with an apartment? When you lose $1500 a month in income you have to start re-evaluating your priorities.
A $390k mortgage at the absurdly low rate of 4% would be about $1.900.
NJ also has the highest property tax rates in the country. Any property that
was once worth almost a half-million probably has a monthly tax bill of, at
least, $700. Add to that, the insurance, say - $100/month and whatever
you want to estimate for the mortgage payment goes up by $800/month.
I bet that mortgage payment, not including the possible 2nd has to be about $3k/month.
We did a mod on the first before the BR and the payment is $1750 (including escrow) for 5 years, then goes up very slowly from there.
So yes, for my area, this is equal to or less than rent.
And yes, I do NEED somewhere to live.
And no one seems to know the answer to my question - can BOA foreclose on the worthless, discharged second mortgage while my first (almost market value) is current?
That was really what I need to know. I have been interviewing furiously this week and keeping everything crossed, something should come out of this. When I become employed full time again, at least the money situation would give us a little wiggle room and time to get back on our feet while having somewhere to live for a bit. And saving up for a huge rental deposit because I am sure we will need it, as well as an emergency fund.
Thanks again for all the replies, and hopefully, someone will know the answer to my question
We did a mod on the first before the BR and the payment is $1750
(including escrow) ... for my area, this is equal to or less than rent.
In that case, yup, no need to rent.
Quote:
Originally Posted by melissa728
can BOA foreclose on the worthless, discharged second mortgage ...
They probably still can.
There is probably some sort of government program that allows them
to be reimbursed for the loss after the forclosure leaves them with nothing.
Even if not, they will need to foreclose in order to be able to write off the loan.
Writing off the loan enables them to reduce their tax obligation, so it's not
completely worthless to the bank. Right now, BOA doesn't make any money,
so there isn't going to be any big hurry to do this, but next year ... who knows?
Maybe the Fed will pay them to buy Treasury debt.
In your case, it still doesn't matter. As long as it takes them to complete the
process, you can live there for the same price as it would be to rent. You are NEVER
going to own that house since all you are doing now is paying rent anyway. It isn't
any different than just renting somewhere and then getting kicked out later on because
they were demolishing the building or something. Why sweat it one way or another?
At the soonest, it will take a couple of years to kick you out. The absolute soonest.
That's what I wanted to know. What happens with the mortgage we are current with then (IndyMac) if BOA decided to go through with it? I would like to know that too - we would stop paying that as well, correct? This is where I am really confused.
They are trying to get us to do a mod on the 2nd which is totally stupid and have sent a couple of certified letters to discuss payment options and something about the dodd-frank certification they sent via fedex to sign and return.
We got hit with flooding pretty bad here from the hurricane and my BR attorney's office is closed right now. I will contact her next week, and until then, I want to rest easy for a bit, the stress from all this is killing me slowly, I swear!
What happens with the mortgage we are current with then (IndyMac)
It doesn't sound like you are current on the IndyMac mortgage either.
You are just paying rent so you are not evicted.
From that article, your debt is discharged, but now you are
just a tenant in the home you used to have a mortgage on.
Say you didn't declare bankruptcy, but you stopped making payments and
then went through the foreclosure process. You get kicked out and in your
anger, you burned the house down ( and the insurance lapsed ).
You would still be on the hook for the mortgage balance.
The only thing bankruptcy bought you was that you don't owe any money
when you get kicked out. BOA keeps asking you to do a mod so that you
will bring the debt to them back to life. Right now, you don't owe them
anything. If you sign their papers - voilà you have a new loan and no house.
That's what I thought too. We are current on the Indy Mac so we have a place to live until we can find somewhere else to live. We are paying them the "mortgage" payment each month.
So if/when BOA does something, then we stop paying IndyMac too? That's what I am confused about too....
I know we do not own this house any more and it's quite a relief. It's just the unknown of how long it will take to be kicked out and what happens during that process is what is stressing.
It would be a blessing to not pay the "mortgage" each month and put money away and save for a deposit and any kind of financial emergency that can arise.
Last question, I don't need to contact BOA in any way, right?
So if/when BOA does something, then we stop paying IndyMac too?
IndyMac might choose to initiate a foreclosure or BOA might.
However, there is probably some sort of rental arrangement that you have
with IndyMac, so when you 'decide' to stop paying, they may decide to evict.
As a tenant, you probably have different 'rights' than as a mortgagor.
That is; BOA may have to wait for the foreclosure process if you stop paying ( you did ).
IndyMac now can make you leave right away ( if you don't pay ) when before, they
would also have needed to wait for the foreclosure process.
Quote:
Originally Posted by melissa728
... the unknown of how long it will take to be kicked out ... is stressing.
It's part of the give/take of bankruptcy discharge.
You don't get stressed out by creditors or worrying about how to pay stuff,
but you get stressed out by getting denied credit and not being about to
finance stuff. In this case, you get stressed by not being able to make
plans for living in this place any more.
Quote:
Originally Posted by melissa728
It would be a blessing to not pay the "mortgage" each month and put money away and save ...
By choosing bankruptcy, you lost that option.
Lots of people are just squatting in their homes rent-free, going on vacations,
getting manicures, buying new cars, etc. - but not paying their mortgage.
It is a tradeoff.
Quote:
Originally Posted by melissa728
I don't need to contact BOA in any way, right?
I would ignore them in every way. The debt has been discharged.
Thanks for the good points - I am feeling pretty positive that something will pan out with the job this month and things are going to fall into place from there.
You are right - each situation (either the BR or being in debt) has its own perks (hee hee) and negatives. Always a trade off.
I have no plans on contacting BOA; just wanted to make sure I didn't need to.
Oh, and we haven't been on a real vacation in more than 10 years and are not living large by any stretch of the imagination. We eek by with everything and I am tired of living like this; it's existing and it's no way to live.
Thanks again, everyone has been incredibly helpful.
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