Posted on: 20th Feb, 2009 06:02 pm
i am a single mom that owns and occupy a 4 family home, i rent three of the apartments. my mortgage loan was modified in december of 2008, i was able to do my january payment but could not make my february payment in full. the problem i'm having is that only one of the apartments is rented right now and it has become extremely difficult to get or retain a good tenant. in addition to that, i'm not going to be able to rent one of the apartments because the furnace stopped working and i don't have money to replace it. aside from all of these, the house needs a lot of fixing and i don't have the means to do it.
without a rental income i would not be able to pay my mortgage. my pay check is barely enough to cover my other bills and responsibilities. the house is up for sale but the value of the house right now is not even close to my loan balance. to all these i need to add my credit card debt ($30,000), a personal loan and a car loan.
with the exception of my mortgage payment, i have always been and still am on time with all of my other payments. i've been thinking about applying for a "deed in lieu of foreclosure" but then i wonder how long is going to take me to pay off all of the other debt. will i ever be able to pay it off? after i loose my home i am going to be responsible for rent and everything else.
should i just file for bankrupcy? can i do both, the "deed in lieu of foreclosure" and the bankrupcy?
please advice.
thank you,
haifa
without a rental income i would not be able to pay my mortgage. my pay check is barely enough to cover my other bills and responsibilities. the house is up for sale but the value of the house right now is not even close to my loan balance. to all these i need to add my credit card debt ($30,000), a personal loan and a car loan.
with the exception of my mortgage payment, i have always been and still am on time with all of my other payments. i've been thinking about applying for a "deed in lieu of foreclosure" but then i wonder how long is going to take me to pay off all of the other debt. will i ever be able to pay it off? after i loose my home i am going to be responsible for rent and everything else.
should i just file for bankrupcy? can i do both, the "deed in lieu of foreclosure" and the bankrupcy?
please advice.
thank you,
haifa
Hi Haifa,
I think you should first speak to the lender about a deed in lieu. If the lender is convinced by your hardship and accepts a deed in lieu, then you will not have to file bankruptcy. In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven but you should note that you will have to pay taxes on the forgiven amount. Apart from this, your credit score will be lowered by 250 points.
Once your deed in lieu is complete, you can then contact a debt consolidation company in order to consolidate your credit card debts. They will tell you about their plans and then you can select the one you can afford. I know of a debt consolidation community - "debtconsolidationcare.com". You can visit their website and speak to their financial coach.
If the lender does not accept your deed in lieu, then you should think about filing a bankruptcy.
Thanks
I think you should first speak to the lender about a deed in lieu. If the lender is convinced by your hardship and accepts a deed in lieu, then you will not have to file bankruptcy. In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven but you should note that you will have to pay taxes on the forgiven amount. Apart from this, your credit score will be lowered by 250 points.
Once your deed in lieu is complete, you can then contact a debt consolidation company in order to consolidate your credit card debts. They will tell you about their plans and then you can select the one you can afford. I know of a debt consolidation community - "debtconsolidationcare.com". You can visit their website and speak to their financial coach.
If the lender does not accept your deed in lieu, then you should think about filing a bankruptcy.
Thanks