SadieOdelle
Junior Member
What is the name of your state? Florida
I bought a pre-construction house in Estero, FL with a plan to flip it. I actually live in TX. I put 60k down & by the time the builder finished it, the market was already on a rapid downhill slide. I went ahead and closed in April 2006 (now I wish I had taken the 60k hit). I expect to loose about 150k on the house. I am considering foreclosure or Chapter 13. Here are my questions: (1) Foreclosure -- other than bad credit for 7 years, what are the other consquences? What other assets can they seize? The only thing of value I have (other than retirement accounts, which I understand they cannot touch) is a business lot which I stand to make 100k. Can the lender seize that? (2) Chapter 13 -- I've read that foreclosure is worse on your record that bankruptcy...is that true? I make enough money to barely make the negative-amoratization payment each month, which doesn't help in the long run since that increases my principal every month. Is that considered enough of a financial hardship? There is no way I could make the interest-only option each month. (3) Next Steps with lender -- I spoke with the lender about 3 weeks ago & explained my situation. They offered to refinance. However, that would only lower my monthly payment by some $200 and would actually increase my principal by $14k (they would roll the re-fi closing costs into the principal. Yesterday, in an effort to keep communicating with them, I let the lender know that I would likely not be able to make this month's payment. They don't seem to take me seriously until I've missed several payments. What should I do next with the lender?
What is the name of your state? I live in TX, but house is in FL.
I bought a pre-construction house in Estero, FL with a plan to flip it. I actually live in TX. I put 60k down & by the time the builder finished it, the market was already on a rapid downhill slide. I went ahead and closed in April 2006 (now I wish I had taken the 60k hit). I expect to loose about 150k on the house. I am considering foreclosure or Chapter 13. Here are my questions: (1) Foreclosure -- other than bad credit for 7 years, what are the other consquences? What other assets can they seize? The only thing of value I have (other than retirement accounts, which I understand they cannot touch) is a business lot which I stand to make 100k. Can the lender seize that? (2) Chapter 13 -- I've read that foreclosure is worse on your record that bankruptcy...is that true? I make enough money to barely make the negative-amoratization payment each month, which doesn't help in the long run since that increases my principal every month. Is that considered enough of a financial hardship? There is no way I could make the interest-only option each month. (3) Next Steps with lender -- I spoke with the lender about 3 weeks ago & explained my situation. They offered to refinance. However, that would only lower my monthly payment by some $200 and would actually increase my principal by $14k (they would roll the re-fi closing costs into the principal. Yesterday, in an effort to keep communicating with them, I let the lender know that I would likely not be able to make this month's payment. They don't seem to take me seriously until I've missed several payments. What should I do next with the lender?
What is the name of your state? I live in TX, but house is in FL.
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