Posted on: 02nd Mar, 2009 03:09 pm
I lost my job back in June of 2008 and have not been able to find a new job. I had to cash out my 401(k) and use my credit cards to survive for the last 9 months. As of March 1, we do not have enough money left to continue making my house payments and credit card payments (we barely have enough left to eat and keep the lights on for the month). Currently, everything is up to date and I've never had a late payment. But it's about to come crashing down.
The problem is I have no prospects of getting a job here in the area because I was in a senior-level position in my last company. Most of the local companies are not looking for people at my level, and the only leads I've received locally were for 40% to 50% less than what I was making before, which would had made it impossible to continue making the payments. We are looking at relocating to another state to live with family while I attempt to get another job.
In addition to the CC debt, thanks to the wonderful real estate market here in FL, my house is about $75k upside down. Right now I'm considering Chapter 7 since I have NO income and have no idea when I will get work again. We don't want to stay here, actually...we can't. I need to find work, and there isn't any around here. If I do go Chapter 7, what do I do about the mortgages (1st and 2nd)? Do they get included in the BK? Do I just leave and send the keys to the bank? Please advise.
The problem is I have no prospects of getting a job here in the area because I was in a senior-level position in my last company. Most of the local companies are not looking for people at my level, and the only leads I've received locally were for 40% to 50% less than what I was making before, which would had made it impossible to continue making the payments. We are looking at relocating to another state to live with family while I attempt to get another job.
In addition to the CC debt, thanks to the wonderful real estate market here in FL, my house is about $75k upside down. Right now I'm considering Chapter 7 since I have NO income and have no idea when I will get work again. We don't want to stay here, actually...we can't. I need to find work, and there isn't any around here. If I do go Chapter 7, what do I do about the mortgages (1st and 2nd)? Do they get included in the BK? Do I just leave and send the keys to the bank? Please advise.
Your first step is to call the bank and detail your situation to see if there is anything they can do.
What could the bank do? I have no way to make payments at this time, and there is really no reason for me to stick around since I can't continue here without finding work?
hi guest,
the lender may give you an alternate option. you can speak to the lender about loan modification if you want to save your property. you can also speak to the lender about short sale or deed in lieu if you can afford to lose the property. if you go for a chapter 7 bankruptcy, then your debts may be discharged and you will not be liable for the debts personally. however, if you reaffirm, then you will have to make regular payments.
thanks
the lender may give you an alternate option. you can speak to the lender about loan modification if you want to save your property. you can also speak to the lender about short sale or deed in lieu if you can afford to lose the property. if you go for a chapter 7 bankruptcy, then your debts may be discharged and you will not be liable for the debts personally. however, if you reaffirm, then you will have to make regular payments.
thanks
well, guest, i don't suppose you could have made it plainer that you do not wish to stick around in florida. obviously modification of your mortgage does you no good if you lack the funds to pay the modified payment. contacting them to seek out a solution isn't likely to do you much good at this time.
you mentioned bankruptcy. what you'll need to do, frankly, with your bankruptcy questions (assuming you want precise answers) is to contact an attorney who specializes in bankruptcy. he or she can explain the pros and cons, and can also go into detail about what happens with your home and with your mortgage. mailing the keys to the bank won't do you or them any good, either.
you actually would gain some advantage in bankruptcy, as it would stall any legal action the bank might wish to take. of course, inasmuch as your payments are current now, that's not likely to happen anytime soon, anyway. it would be courteous of you to contact your lender to let them know your situation at this point, to prepare them for the future, when your payments are no longer forthcoming.
check with a lawyer, do what you have to do, move wherever you're convinced will work out better...move on is apparently the best i can tell you at this point. just be sure you get expert advice from those who are directly involved.
you mentioned bankruptcy. what you'll need to do, frankly, with your bankruptcy questions (assuming you want precise answers) is to contact an attorney who specializes in bankruptcy. he or she can explain the pros and cons, and can also go into detail about what happens with your home and with your mortgage. mailing the keys to the bank won't do you or them any good, either.
you actually would gain some advantage in bankruptcy, as it would stall any legal action the bank might wish to take. of course, inasmuch as your payments are current now, that's not likely to happen anytime soon, anyway. it would be courteous of you to contact your lender to let them know your situation at this point, to prepare them for the future, when your payments are no longer forthcoming.
check with a lawyer, do what you have to do, move wherever you're convinced will work out better...move on is apparently the best i can tell you at this point. just be sure you get expert advice from those who are directly involved.
