stop paying then go bankrupt. (insurance, loan, interest rate, foreclosure)

[cob]

do people stop paying there mortgage first and than go bankrupt, you figure your credit is goin to get ruin anyways. has any one done this and what happend .

[heydade]

you need to QUALIFY for bankruptcy first, which is hard to do unless you are in over your head in debt. Just because you can't afford a home, does not mean you can file for bankruptcy. Ever since the new bankruptcy laws that passed several years ago, it is hard to qualify for Chapter 7. There is always Ch.13....but that is different as you are still obligated to make payments

[NYSinger]

What's going to happen is that your credit score will go so low after 90 days of not paying your mortgage that no landlord is ever going to allow you to rent.

[whatshouldido]

That is BS NYSinger. You will have less opportunities, but to make such a generalization is rediculous. I know, I am a landlord.

[Buckeye in SC]

Originally Posted by NYSinger

What's going to happen is that your credit score will go so low after 90 days of not paying your mortgage that no landlord is ever going to allow you to rent.

Definitely BS, b/c we'd have a ton more homeless people than there are if that were the case. While it is a consideration, a lot of bankrupt people make great money and were just stupid w/it and are having to start from scratch and climb uphill.

[CTR36]

Originally Posted by NYSinger

What's going to happen is that your credit score will go so low after 90 days of not paying your mortgage that no landlord is ever going to allow you to rent.

That is incorrect. Landlord will rent to you if you are upfront with them.
They may require a bigger deposit, etc. but you can still rent.

[mystree]

What's going to happen is that your credit score will go so low after 90 days of not paying your mortgage that no landlord is ever going to allow you to rent.

I've never had a credit check done to rent a place,of course I would never rent in an apartment building.

[SuSuSushi]

Hey, you bought it. How about actually paying for it? I know, I know, that's a ludicrous concept to so many people.

[Modification Specialist]

Originally Posted by cob

do people stop paying there mortgage first and than go bankrupt, you figure your credit is goin to get ruin anyways. has any one done this and what happend .

Doing a bankrutcy is the easy way out now, but you will pay for it for many years....

This is typically the way it happens...

You don't pay your mortgage for four months, a leis pendus of foreclosure is filed at the court house and you receive a registered letter stating your going into foreclosure. After 8 months, it is deemed by the courts that you have given up the rights to your home and a court date is scheduled. The courts have a hearing and a sale date is scheduled.

You file bankruptcy to stop the sale of your home. Your life stops.....

By filing bankruptcy - you postpone your debts, eventually the debts will have to be satisfied. You won't be able to get any good financing for a minimum of 3 to 5 years. Your credit report is shot.

Mentioning credit - a person with bad credit in their 30's, is Ok because they have many working years ahead of them. A person in their 40's, are entering into the red zone, because their working years are now limited. A person if their 50's with bad credit, are in a sinking ship. Point - once a person retire's and goes on fixed income, at that point it is almost impossible to correct their credit.

Having bad credit - your utilities (electric, gas, water) are more expensive. Will insurance will be higher. You will get turned down when appling for anytype of financing.

This has been the way most americans have dugg themselfs into a hole.....



There is another way.........



......by the law that was passed by Congress in September 2007. If you can prove you experienced hardship caused of the terms of your loan. By law your mortgage company has to modify your loan.

This includes high interest rates, adjustable loans, proveable medicial conditions, behind on payments, or in foreclosure.

A modification can save your home and give you a chance to catch up. I'm sure you have probally heard a people doing their own modifications. The fact is, 97% of the people who try fail.

Last week I spoke to a Mother of three children in New Jersey who tried to do her own modification with Option One. She sent all her financial documents to them. They called back, screaming at her to put her kids in daycare and go out and get a job. She was crying when she said she already had a partime job, with her husband and retired father both working full time.

This is an example why most people fail is becase they do not know the correct channels to get a modification done.

It sounds like you really need to speak to someone that understands what your facing. The rules of this forum prevent me from mentioning my company name. If you want to discuss this further, PM me...


Good Luck.....

[NYLATINQT]

Oh I need to get in on this thread. I was going to start a new one just to vent about the mortgage "crisis" going on. I work as a counselor who deals with people who are going into foreclosure. Let me just say that my empathy, sympathy or whatever has run dry. I am so sick and tired of dealing with broke, irresponsible homeowners who got in over their heads and now want the banks to lower the debt that they owe. Give me a break. If you knew you couldn't afford a $500K house on a $10 per hour job, then you should have not signed for an interest only or negative amortization loan. The American entitlement mentality has gotten ridiculous. I have people calling me who can barely rub two pennies together and they were investing in multiple properties trying to flip them. Now shame on the banks too for being greedy idiots in the first place and giving out no documentation loans. Now everybody has to pay the piper. Freddie Mac, for example, is scrambling and is giving out mass loan modifications--without income verification!! Isn't that what created the problem in the first place? I personally feel that there should be no bail out. Let the prices drop back down to reality and those that should never have been in a home in the first place, go rent an apartment, get your credit straight and save some money.
I think it's a joke that I have to go home with a headache because people don't want to take responsibility for their own stupid decisions. People, wake up! Get out of debt. Save some money. Get your lives in order. Work hard and stop trying to get rich quick. And if by chance you legitimately can't pay your mortgage because you lost a job, then sometimes in life, things don't always go as planned, cut your losses and move on. Just don't expect your mortgage company to let you live in the house for free.