Renting and bad credit

[graceful]

Sorry I was confusing before. My comments on what seemed more "ethical" was based on an assumption that the first 2 options involved moving out and surrendering possession back to the bank so that if they chose they could go into at anytime they wanted without going through the courts. But it doesn't look like that is feasible since they may not want possession.

You make a good point about not abandoning the house and leaving it a vacant shell. And like you stated, they may work with you later down the foreclosure time line but once you abandon the house, no more negotiation possible.

You need to do what is best for your situation. Personally, if my credit was going to be totally trashed anyway, I would probably stay in the house. I would worry about the school district MUCH later. Your son is young and you have time.

[Radiance]

It is very hard anyway it goes. I was very destroyed last night. But in talking to a friend and praying I feel much better. And posting here of course! I want and will pay everything back. Just not under the original conditions I signed for.

Aug 6th is coming soon, I need to make a decision well before that.
I keep on researching and I will get an appointment with a lawyer. If my friend doens't get back to me today iwth the name of one, I'll find another via yahoo yellow pages.

I bought a foreclosure book at nolo, it was very educational. Money well spent. (I took the money from my neccesities money) ;-)

In a nutshell it is about being very responsive to all comunications both from the lender and from the courts. I have done what they say to do. Contact a hud agency, get financial counseling, build a budget, cut corners, communicate with your lender, which I do weekly.

They might not like it much, but they receive a weekly phone call... I even recognize two voices that I know are bad karma and I hang up to call again and get another soul.

I am blessed my son is a baby, ok, a toddler, so he doesn't understand what is going on, he is not ashamed and I don't have to explain things to him. To him, Mommy is home...and to me, he is home.

[Radiance]

An update, I visited a couple of nice, well located places.

I was informed that they are not taking foreclosure into account. But if they see any other problems they decline to rent.
One of the places don't like it when they see luxury buys, such a trip or a new car together with a foreclosure. The other just want to see no other lates but the mortgage and the foreclosure.

So, I will be in good shape now or a year from now. Availability is tough though. I will have to look for a place well in advance.

...10 days left before I am late. No answer on my letter of appeal from the bank.
I have my appointment with a real state lawyer this evening.

[Radiance]

This really makes me think. When facing problems paying the mortgage, everybody advise pay the mortgage first and then the rest.

Given what I know now, I disagree, It seems that if I pay everything else but the mortgage, companies will be willing to ignore my foreclosure AS LONG AS I don't have other defaults.

If I follow the advise, I will get myself in more trouble than JUST the mortgage. I had refused to max out my credit cards in the name of keeping my house because I don't want a foreclosure AND tons of debt.

Besides, they tell you that if you stay rent free, use that time to save and get out of debt... THis is a huge contradiction to the advise of pay the mortgage first and the other creditors are less important or have less impact on your credit. It seems to me it is the other way around

[creditcardfree]

This really makes me think. When facing problems paying the mortgage, everybody advise pay the mortgage first and then the rest.

Given what I know now, I disagree, It seems that if I pay everything else but the mortgage, companies will be willing to ignore my foreclosure AS LONG AS I don't have other defaults.

If I follow the advise, I will get myself in more trouble than JUST the mortgage. I had refused to max out my credit cards in the name of keeping my house because I don't want a foreclosure AND tons of debt.

Besides, they tell you that if you stay rent free, use that time to save and get out of debt... THis is a huge contradiction to the advise of pay the mortgage first and the other creditors are less important or have less impact on your credit. It seems to me it is the other way around

I understand whre you are coming from, but for someone who has the ability to pay their mortgage this really should be a priority. Shelter is a necessity. Of course, shelter comes in many forms and price ranges.

You have arrived to the point where you can't afford your home. You did make the right decision not to max out credit cards to afford your home. No one should ever do that.

I have heard that one should buy food first, pay utilities (water/gas/electric) and then housing.

[Radiance]

ok, I think that if you believe for your situation to be temporary, then it makes sense to be late on non-mortgage debt only, since the effect on your credit is less and it is easier to negotiate with those folks (in general).

Let's say you lost your job but believe you can find one in 6 months or so, or you are waiting for a big bonus that will elliminate your problem for good, make sure you pay your mortgage after shelter, electrivity and food. When you get back on your feet you'll have some dents on your credit, but it is repairable and les impact than mortgage payments showing late.

But if your situation is permanent, lost job and believe it will take more than 6 months to find another one with enough income, separation (my case), death of partner, variable payments that went high raise, those things are not likely to go away. If you don't get a loan modification, you will not be able to afford the house, not now, not in a few months.
In this case, it makes sense to ensure your only late is the mortgage. With so many foreclosures, it seems creditors are forgiving of that as long as the rest checks out fine. For me, it doesn't make sense topay mortgage first if that will mean to be late on all my other debt. I should pay food, electricity, car payments, car insurance, even HOA, everything, and only allow the mortgage to go late since I can not avoid it. I will know more tonight after my appt with the lawyer. Stay tuned.

[creditcardfree]

For me, it doesn't make sense topay mortgage first if that will mean to be late on all my other debt. I should pay food, electricity, car payments, car insurance, even HOA, everything, and only allow the mortgage to go late since I can not avoid it. I will know more tonight after my appt with the lawyer. Stay tuned.

I agree.