Posted on: 27th Mar, 2009 07:38 am
we are just starting to fall behind on the mortgage and at this point realize we can't afford the house and need to walk away. we have a first and second mortgage with negative equity in our house. we have plenty of unsecured debt (about 38k) to deal with as well as two car payments. and of course daycare and diapers. is chapter 13 the best route or foreclosure followed by a bankruptcy to deal with the deficiency that is likely to happen with a foreclosure? in chapter 13 do i have to keep the house?
have you figured out how much of your payments are interest, banks will rather negotiate the interest, than get a house, If they lowered the interest some times to almost nothing, could you stay in the house?
hi kalli,
if you want to keep the house, chapter 13 bankruptcy would be a good option. under this bankruptcy you will be offered an alternative repayment plan to pay off the debts. paying off the tax debts and your secured loans would be your priority. if your property value is lower than the loan amount you owe, your second mortgage will not be covered by it any more and the second mortgage can be considered as undersecured and you may not be required to pay it off. however, you should consult a bankruptcy attorney and check whether it suits your situation.
thanks,
jerry
if you want to keep the house, chapter 13 bankruptcy would be a good option. under this bankruptcy you will be offered an alternative repayment plan to pay off the debts. paying off the tax debts and your secured loans would be your priority. if your property value is lower than the loan amount you owe, your second mortgage will not be covered by it any more and the second mortgage can be considered as undersecured and you may not be required to pay it off. however, you should consult a bankruptcy attorney and check whether it suits your situation.
thanks,
jerry