Posted on: 25th Jul, 2009 06:34 pm
[size=12][/size]Due to large medical expenses and too much debt, I was forced to file Chapter 7 which was discharged 6/2004. February 2006 I purchased a home w/a Countrywide ARM with only about $500 down. My loan has never adjusted. Since the bankruptcy I've always paid my bills on time or ahead. I became unemployed March 2009, went through my 401(k), all unemployment income, working temporary since July at 60% of my former salary. Last month my house payment was 17 days late. My car is now 21 days late. I've reached the point where I don't have enough income to cover the monthly bills, medical expenses and living expenses by approximately $700+. I have no family who can lend money, no one to advise me on how to proceed, cant' afford a lawyer, and I don't want to live in a shelter, lose everything I own and give my pet up to a shelter. What should I do? Contact CCC Service? Even if I could buy time w/creditors I will never find work in the present economy making what I did before. What do I do now?!! What would you do?
I can understand that you are facing a tough situation, Sally. In my opinion, you should contact your lender and inform him about your hardship. You can check out if the lender approves a loan modification for you. This will help you in saving your credit as well as your property.
However, if you do not want to save your property, you can go for a deed in lieu of foreclosure. If the lender accepts this request, then you would be able to sell off the property. However, you won't be responsible for the deficient amount. But your credit rating would badly go down.
However, if you do not want to save your property, you can go for a deed in lieu of foreclosure. If the lender accepts this request, then you would be able to sell off the property. However, you won't be responsible for the deficient amount. But your credit rating would badly go down.