Posted on: 08th Jul, 2009 11:32 am
i am trying to make a very difficult decision - in 2007 i was laid off. i was unable to find a job that i could make the same amount of money as when i originally purchased my home. i make over 25k less now with the bills piling up. i have a first and second mortgage on my home. i have been working for nearly 7 months with my first mortgage company to work out a loan modification - 4 months under the making home affordable plan. my second mortgage company is unwilling to work on any type of modification. i have never been late on either mortgage. i have incurred an enormouse amount of credit card debt and am at my breaking point to even make the minimum payments. i want to get rid of the house but the value has plummeted and i am pretty certain my first mortgage company will not agree to a deed in lieu due to having a second mortgage attached. i am considering bankruptcy but it appears as though chapter 7 is my only choice as i do not want to keep my home. i do however want to continue paying my car and would like to work out more affordable options for the credit card companies but i don't know how to make that work? any ideas?
Hi minshelly,
You can negotiate with your first lender for a deed in lieu. If it gets accepted, then you would be able to sell off the property and get rid of the first mortgage. As far as the second loan and car loan is concerned, you can negotiate with the second lender and try to lower your dues and try to pay it off.
If the lender is not ready for a deed in lieu, then you can go ahead and file a bankruptcy. You can surrender your property when you file Chapter 7. As far as the car loan is concerned, you can reaffirm it and pay it off. Credit card debts generally get discharged in bankruptcy. So you won't have to negotiate with them for an affordable plan.
Thanks
You can negotiate with your first lender for a deed in lieu. If it gets accepted, then you would be able to sell off the property and get rid of the first mortgage. As far as the second loan and car loan is concerned, you can negotiate with the second lender and try to lower your dues and try to pay it off.
If the lender is not ready for a deed in lieu, then you can go ahead and file a bankruptcy. You can surrender your property when you file Chapter 7. As far as the car loan is concerned, you can reaffirm it and pay it off. Credit card debts generally get discharged in bankruptcy. So you won't have to negotiate with them for an affordable plan.
Thanks