Posted on: 04th Feb, 2008 09:49 am
over $80k in credit card debt
was going to see about saving the house, but just called 1st mortgage. i told them i'll be filing bk, and if they'll be able to do anything. they quoted me refinance rates that actually makes my interest rate higher, and loan payments higher. i feel like i was asking for help from a wall.
home is probably less than first and second mortgage.
i'm not late in payments to home or credit cards, but will be next month. i can't afford either now.
how do i get out of this mess?
was going to see about saving the house, but just called 1st mortgage. i told them i'll be filing bk, and if they'll be able to do anything. they quoted me refinance rates that actually makes my interest rate higher, and loan payments higher. i feel like i was asking for help from a wall.
home is probably less than first and second mortgage.
i'm not late in payments to home or credit cards, but will be next month. i can't afford either now.
how do i get out of this mess?
Do you already work 2/3 jobs?
If not that is the only place to start.
What did the lender quote you for a rate?
What is your current rate?
Where you including paying off the cc debt in the loan?
The above could be a reason for the higher rate. However if that is the case it might not necessarily be the worst thing. OR You said the house is not worth what you owe. Is that correct? Then that is the reason for a higher rate and I can't believe they would even consider a new loan. Not to mention if it truly has no benefit it would be illegal for them to do anyway.
If you could provide as many details as possible I will do anything I can, however small, to help you get back on track.
If not that is the only place to start.
What did the lender quote you for a rate?
What is your current rate?
Where you including paying off the cc debt in the loan?
The above could be a reason for the higher rate. However if that is the case it might not necessarily be the worst thing. OR You said the house is not worth what you owe. Is that correct? Then that is the reason for a higher rate and I can't believe they would even consider a new loan. Not to mention if it truly has no benefit it would be illegal for them to do anyway.
If you could provide as many details as possible I will do anything I can, however small, to help you get back on track.
Well if you file for BK, the attorney can do a reaffirmation agreement with the lender for you to keep the house. This would eliminate the other debts, but keeping the house debts in place. Now as for the second lien on the home, I believe you can file BK with them. Its a 50/50 shot that they might not allow that debt to be cleared.
But if you get rid of the 80k in credit cards, the mortgage load might be a little more managable.
Good Luck!!
But if you get rid of the 80k in credit cards, the mortgage load might be a little more managable.
Good Luck!!
Hi Guest
Welcome to the forum.
When have you taken the mortgage? After taking the mortgage, have you yet refinance it yet? If so when have done it?
See you cannot refinance the mortgage at least before a year after taking the mortgage or refinancing. To get lower rates in refinance, your equity also matters. So have you gained good enough equity?
Best of luck.
Larry
Welcome to the forum.
When have you taken the mortgage? After taking the mortgage, have you yet refinance it yet? If so when have done it?
See you cannot refinance the mortgage at least before a year after taking the mortgage or refinancing. To get lower rates in refinance, your equity also matters. So have you gained good enough equity?
Best of luck.
Larry