Posted on: 08th Aug, 2009 03:51 pm
we're in a mess. the financial crisis has hammered us and we can't afford our mortgages. the house is worth maybe $475k, if it sells as a foreclosure and more like $370-$425. we have a $588k 1st and a $200k 2nd (heloc) that was taken out after the purchase so it can't be considered purchase money mortgage. we started contacting our lenders in dec 08 when we were current informing them of our hardship, to which they were pretty unresponsive.
thousands of phone calls, emails, you name it, we are at a point where we are in foreclosure. the 1st mortgage says our income is insufficient to qualify for the obama plan. our 2nd wis unwilling to modify with us behind on the 1st. they said we could settle for 20% which we offered 18% (just couldn't raise the full 20%). they rejected it and now they've charged it off and say they'll only settle for 36%, which is impossible.
my questions are a few. if we declare bankruptcy, will that resolve the chargeoff? a chargeoff stays on your credit for 7 years, what happens after that? i'm still trying to get the 2nd to change their minds and take the 20% they agreed to before the chargeoff, assuming a miracle and they can, what's better on the 1st, let it slide into foreclosure or file bankruptcy. we want to keep the home but if they won't budge we can't afford it. and the apr is set to start adjusting in 2013, whereby then we really wouldn't be able to afford it.
thousands of phone calls, emails, you name it, we are at a point where we are in foreclosure. the 1st mortgage says our income is insufficient to qualify for the obama plan. our 2nd wis unwilling to modify with us behind on the 1st. they said we could settle for 20% which we offered 18% (just couldn't raise the full 20%). they rejected it and now they've charged it off and say they'll only settle for 36%, which is impossible.
my questions are a few. if we declare bankruptcy, will that resolve the chargeoff? a chargeoff stays on your credit for 7 years, what happens after that? i'm still trying to get the 2nd to change their minds and take the 20% they agreed to before the chargeoff, assuming a miracle and they can, what's better on the 1st, let it slide into foreclosure or file bankruptcy. we want to keep the home but if they won't budge we can't afford it. and the apr is set to start adjusting in 2013, whereby then we really wouldn't be able to afford it.
If you declare bankruptcy, you will notbe responsible for the deficient amount.
Yes it will stay on yoru report for 7 years.
Yes it will stay on yoru report for 7 years.