Mortgage Forum

Joel Fraser

I am looking to the future after I give up my home. Circumstances have conspired against me and I can no longer afford the home. Quick situation: bought 11/2005 in Florida, married 11/2006, moved 2 hrs away, put house for sale 9/2006, never sold, placed as short sale 2/2008, left husband 3/2008 and moved back into condo, changed jobs AGAIN (no 2 hr commute), work on commission-hair stylist-rebuilding clients in former job takes time-50% paycut but pay beginning to get better. Now 3 months behind-2 mortgages= $900, HOA $201 (increased $100% since I bought), ASSESSMENT= $217 month for next 6 months. WE have major structural defects on property, lawsuit against developer etc. My realtor got a BUYER on a short sale but NO ONE will finance the mortgage due to the lawsuit against the developer and the high rate of forclosures in the community (over 100, likely more since we got hit with the assessments). I have submitted paperwor for a Deed in Leui of forclosure, which takes 30-90 days to review. My bank for both mortgages is Wells Fargo. People keep saying, "why don't you rent?" Because I am paying over $1326 for a 658 sq ft apt that rents for $700 (on craigslist), I'd still have to pay over $600 month and pay rent elsewhere.....Talked with 2 lawyers who suggested Bankrupcy- However, I have no problem paying all other bills except the mortgage, I have low credit card balances but the lawyer says I can have those discharged along with the mortgage and HOA debts. But in the process I lose my credit cards (not using them to live, but peace of mind and convience of If something happens you have them), and have to live on a cash basis, I've been advised to stop direct deposit from my employer, and cancel direct debit from student loan and live on a cash basis. List all my assets and be prepared for the trustee to sell my stuff to pay the creditors. Hey if I did that then I wouild really be free to move wherever I want without moving the furniture. Think of all the money I'll save not having to pay for a moving truck! I understand that a BK stays on credit record for 10 years while a Deficiency Judgement stays on 20 years. But what is the procedure for collections on a DJ? At least I get to keep my credit cards and private banking/spending info PRIVATE. BK seems so intrusive. At this point I never want to own again so how exactly will the DJ effect me in the future???Thanks for your help. I have come to really love this forum. I know the lawyer wants to help, but on the other hand, it's another hand reaching out for some of my hard earned cash. Seems like everyone wants money huh?