Posted on: 23rd Feb, 2009 03:18 pm
We are in a unique situation. Our home is valued above what our loan is, however, in a market where normal properties are not selling, this does not help us ie: if it cannot sell, there is no equity! My husband is a self employed contractor, I am a Realtor. We are currently in the situation where our monthly bills are not getting paid and we are only able to afford basic life needs - groceries, electric, etc. We are considering Ch 7. We have about 100k in credit debt on top of the mortgage. I have spoken to all creditors and explained the situation, no help. No one wants to talk until you are late. So, this month we will be 30 days late and try again. Knowing the current credit crisis and the unwillingness of creditors to work with people, any suggestions? We are trying to have the least amount of overall impact to credit and our financial situation.
Hi jenn!
Welcome to forums!
Yes, it's true that lenders will not give you any options until you are delinquent on your payments. Once you are delinquent, you can apply for a loan modification if you want to save your property. However, if you do not want to save your property, you can go for a short sale or a deed in lieu.
As far as credit card debts are concerned, you can try to consolidate your debts with the help of a debt consolidation company. You can check out their plans and then take a decision whether you want to go for it or not.
I think Chapter 7 should be your last option. Filing Chapter 7 will help you in wiping away your debts but it will badly affect your credit report.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Yes, it's true that lenders will not give you any options until you are delinquent on your payments. Once you are delinquent, you can apply for a loan modification if you want to save your property. However, if you do not want to save your property, you can go for a short sale or a deed in lieu.
As far as credit card debts are concerned, you can try to consolidate your debts with the help of a debt consolidation company. You can check out their plans and then take a decision whether you want to go for it or not.
I think Chapter 7 should be your last option. Filing Chapter 7 will help you in wiping away your debts but it will badly affect your credit report.
Feel free to ask if you have further queries.
Sussane
So far, because we do not have consistent income, we do not qualify for hardship programs, debt consolidations, etc. We tried Consumer Credit Counseling - our payments would be higher if we went through them. The problem with trying to "save" the property is that we do want to sell so we can build on a property that we already have secured. We thought we would be able to sell and walk away with some equity, but at this point we are just bleeding ourselves dry by paying the payment along with our credit cards and we have no hope of the property selling - even with a short sale, we are in such a unique area that NOTHING has sold within even the past year. We are in a rural area next to a river that is a vacation spot. We do have parents who are willing to co-sign, get lending on our behalf, and help us in any way to rebuild our credit. Does that change your opinion in any way?
Hi Guest,
As you do not have a consistent income, I think you should qualify for a deed in lieu. Did you speak to the lender about the deed in lieu option? The lender may accept the deed in lieu if you are delinquent on your payments.
"We do have parents who are willing to co-sign, get lending on our behalf, and help us in any way to rebuild our credit. "
I did not understand what you wanted to say by this. Do you want to take a loan in order to come out of this mess? As you are unable to pay this debt, I don't think lenders will approve another loan in your name.
Thanks.
As you do not have a consistent income, I think you should qualify for a deed in lieu. Did you speak to the lender about the deed in lieu option? The lender may accept the deed in lieu if you are delinquent on your payments.
"We do have parents who are willing to co-sign, get lending on our behalf, and help us in any way to rebuild our credit. "
I did not understand what you wanted to say by this. Do you want to take a loan in order to come out of this mess? As you are unable to pay this debt, I don't think lenders will approve another loan in your name.
Thanks.