This is about foreclosure and bunkupcy. These are some of the facts:1) nj residence currently single2)own a condo-way underwater-condo value perhaps 180,0003) mortgage of 250,000 and 2nd mortgage 70,0004)credit card debt of 60,0005) no saving or other assets-0nly 40,000 in state retirement plan6) current income of 80,000I want to walk out of this property the best way possible withoutLenders going after me.Don't care about damaging my credit with bankruptcy or foreclosure. I have tried to negotiate for a lender modification But was denied cause my income was consider too high. Don't want to keep the Condo given the current situation. Any information of how best to proceed and options?
State/Country relating to question: New Jersey
Tried to negotiate modification but was denied by bank
And told my income was too high
Thanks for your question and good afternoon.
Generally given the two mortgages and the amount underwater it appears that a bankruptcy filing to discharge any debts may be your only option.Since you have two mortgages a deed in lieu would not appear to be a viable option.I would suggest you consider consulting with a local bankruptcy lawyer to go over this as an option to resolve the notes involved and allow you to start over.
You can locate a bankruptcy lawyer here
This would allow you to plan for filing and maximize your rights as a debtor.
The other lesser options here like a short sale or deed in lieu likely would not work for you here.
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More reference for you here
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I just need some additional clarification. Can part of the first mortgage be reduced to the actual value of the home and the second mortgage be discharged if it is determined that the value of the home is not covering the 2nd mortgage? Is all that handle by chapter 13? Any additional information as to how to further proceed is greatly appreciated.
The lenders generally here will not likely agree to reduce the amount of the loans.If you file Chapter 7 they would be discharged as debts.In a Chapter 13 they would remain and you would have payment plan to secured creditors but you could keep the house.I would at least try for a deed in lieu here by calling lender and then considering bankruptcy with lawyer referral if the deed in lieu doesn't work out.If you qualify for a Chapter 7 and you want to get rid of all your debts including the loans this might be a better option.But you are going to need a local lawyer to file bankruptcy.I wish you good luck resolving this.Thanks for the follow up.RayAnswers41035.9958664352
Texas Attorney for 29 years dealing in real estate
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