Planning Our Exit Strategy...

diesel73L

LoanSafe Member
Feb 26, 2015
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Hi all-we should be closing on a new home with an FHA loan by the end of June. Here are the details:
  • Included current home in CH7 BK discharged in 2013.
  • "Stayed and paid" - payments have been current/on time through the entire life of the loan.
  • Bank never stopped reporting payments to credit bureaus.
  • Qualified under FHA for payments on current home and new home.
  • Planning to make every effort to sell/rent current home this summer.
We're going to try to sell it ourselves, marketing it through Zillow/Craigslist, etc...because there's a chance we could get enough for it to cover a buyer's agent commission only and maybe only pay our attorney fees out of pocket. Not likely, but possible. In the event that doesn't work, we'll try to rent it in order to cover the mortgage and hang onto it until next spring. Of course, in the event that neither of these work, we all know what happens then. However, we are not willing to just up and leave, not because we feel an obligation to the bank, but rather, the neighbors. We know what our rights are with regard to the bankruptcy, etc...but we're not comfortable leaving an eyesore for others to deal with, so here is what we're planning:
  • Send a copy of BK discharge and C&D letter to bank demanding that they stop reporting payments after we close on the new home.
  • Forward the mail.
  • Hire a cheap landscaping company (or maybe even a neighbor) to mow the front lawn every two weeks, back lawn once a month, then handle leaves/fall cleanup as it comes. We have no sidewalks in the public ROW to maintain so I'm not worried about snow and ice.
  • Continue paying the electric bill so that the heat and sump pumps continue to function.
  • Place LED lights on timers in strategic places so that rooms appear lit at night.
  • Top up the oil tank (its almost full now anyway) before winter and set heat to 40 degrees (lowest possible setting on t-stat)
  • Winterize the plumbing.
  • Find an insurance policy that will cover us if someone were to walk through the backyard and break their leg, etc...
Again, our biggest concern is not leaving the neighbors with an eyesore-we're close with some of them and just the fact that we're "walking away" is probably going to strain that relationship as it is. We don't want to add insult to injury by leaving them with an empty house with 2' tall grass, mail piling up, etc... We're also not moving very far away, so it will be easy to keep tabs on the property.

I'm hoping that if it comes to a foreclosure, that the process happens quickly, but I'm guessing it would be at least a year from NOD to Sheriff's Sale. I'd love to just give it back to the bank, but with our income I doubt they'd even return my phone call. I'm eager to hear from others here who have been down the same road, or who might have advice to us to protect ourselves through the process.
 
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Moe Bedard

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Loan Safe Mortgage
Aug 10, 2007
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Hello,

That sounds like as good a plan as anyone can come up with in regards to your situation.

In my experience, the foreclosure timeline is always a year or more with many taking about 2-3 years. You just never know what they are going to do nor can you control or speed up the process.

I wish you the best of luck and please let us know how it all works out for you.