Posted on: 21st Apr, 2009 06:07 pm
the last two years were very rough on us. job loss, catastrophic medical bill, expensive repairs to a collapsed well. we could no longer afford our home and could not get the mortgage company to work with us. our house was foreclosed on. we had a second mortgage with an entirely different company. they have charged off the debt and we received a letter from attorneys in an effort to collect the debt - "representing" the mortgage company. we are swamped with debt and we are working it out through a debt management company. there is very little left at the end of the month. my question is, should we offer to settle the debt for less than what we actually owe ($44,000)? would they take payments on a settled amount? or would i be better off to quit trying to work this out and declare bankruptcy? i know i need to talk to a bankruptcy attorney, but the soonest i can see one is june.
Hi pluggin'away,
I think you should first try to work it out with the second mortgage holder. Negotiate with them and try to settle the debt for certain amount of money. If this does not work and the lender does not accept the offer, you can declare bankruptcy, if you want. Bankruptcy should be your last option.
I think you should first try to work it out with the second mortgage holder. Negotiate with them and try to settle the debt for certain amount of money. If this does not work and the lender does not accept the offer, you can declare bankruptcy, if you want. Bankruptcy should be your last option.