Posted on: 25th Sep, 2006 11:45 am
i am married. i bought my house in 2003 in my name only. we have an arm, which caused our payments to skyrocket and we can no longer afford the property. no one will help us refinance. we've already had one modification, which put delinquent payments to the back of the loan, but caused the monthly payment to go up even higher. we're behind in everything...credit cards, medical bills and now the house payment, so neither of us has good credit (somewhere in the 500s). bankruptcy attorney advises us to move into an apartment, file 13 and let the house go into foreclosure. we don't feel that's the right answer. we have had the house on the market for six months with no takers. we've dropped the price by $15,000 so far. at this point we're four months behind. so far, the mortgage companies (we have a first and a second) have not started the foreclosure process. what should we do at this point? we're not comfortable abandoning the house, but do we have any other options?
hi,
in deed in lieu of foreclosure the lender will take over the house and as you do not want to lose the house there is one option, i.e. to file a chapter 13 bankruptcy.
it will allow you to keep your property and will help pay down your debts through a reduced payment plan. but to qualify you should have a regular source of income.
james
in deed in lieu of foreclosure the lender will take over the house and as you do not want to lose the house there is one option, i.e. to file a chapter 13 bankruptcy.
it will allow you to keep your property and will help pay down your debts through a reduced payment plan. but to qualify you should have a regular source of income.
james
Hi,
I also feel you are really in very difficult situation with your debts. In addition to what James said I would add few more things, like there is an eligibility criteria you need to fulfill before you will be able to file for chapter 13. It is called as the means test which is used to judge your ability to pay off debts.
You can go through this article about Chapter 13 bankruptcy for detailed information on the procedure for filing for this type of bankruptcy.
Thanks
Colin
I also feel you are really in very difficult situation with your debts. In addition to what James said I would add few more things, like there is an eligibility criteria you need to fulfill before you will be able to file for chapter 13. It is called as the means test which is used to judge your ability to pay off debts.
You can go through this article about Chapter 13 bankruptcy for detailed information on the procedure for filing for this type of bankruptcy.
Thanks
Colin
Hi Guest,
Even I don't think you should file bankruptcy without trying out other options. Bankruptcy is the final option that you can go for in order to eliminate debts. Rather I feel you should seek debt settlement services which can help to reduce your total debt amount through negotiation with the creditors. But these services are offered only for unsecured loans (if your credit card debt is unsecured) and not a mortgage. By reducing the credit card debt, medical bills etc, you can use the money saved in order to pay off the ARM.
Thanks,
Caron.
Even I don't think you should file bankruptcy without trying out other options. Bankruptcy is the final option that you can go for in order to eliminate debts. Rather I feel you should seek debt settlement services which can help to reduce your total debt amount through negotiation with the creditors. But these services are offered only for unsecured loans (if your credit card debt is unsecured) and not a mortgage. By reducing the credit card debt, medical bills etc, you can use the money saved in order to pay off the ARM.
Thanks,
Caron.
Hi,
why not go for credit counseling. Better avoid bankruptcy.
why not go for credit counseling. Better avoid bankruptcy.