more info on my situation
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| Thu, 05-15-2008 - 10:49pm |
Thank you for all of the info and the support. I am learning a lot about this process and I realized with your questions I haven’t included all of the info you’d need to help me.
To quickly recap if you didn’t see the prior post:
I’m a sole income earner working for a credit union in my family of 5 (which is my husband, me and our three kids)
We are late on our mortgage and they’ve started foreclosure proceedings
I have over 9,500 in credit card debt
I have a loan with a bank that’s unsecured for 7,000
I also have 3,000 in medical bills
I have a 300.00 deficit each month in my budget that’s cut down to bare bones
Now to the new info:
My husband is self employed and he is just breaking even no earned income but also no loss so that is why I say I’m the sole income earner.
I have contacted the mortgage company and they’ve overall been pretty unwilling to help until the last week. The mortgage company did an appraisal of the house and they’re saying we owe 30,000 more than what are home is even worth because of the market.
They did give us some options however if my husband puts in writing he’s responsible for paying certain bills showing up on the credit report they will put a third mortgage on the house for what’s owed right now on the first mortgage if we put down the cash to bring the second mortgage current. We do have the funds to do that.
I live about an hour from where I work and with gas prices it may make sense for us to live closer to my work and for my husband to close his business. So we are considering bankruptcy/ foreclosure a little more because of that fact as well.
My mortgage is exactly 30% of my earned income before any taxes, health insurance and all of that are taken out.
I guess the reason we chose to inform my ex mother in law is because she lives close to my work in the area we would be moving and she owns two houses. We were hoping she would agree to if necessary allow us to rent one of the properties (it’s for sale and hasn’t sold in over a year). My biggest concern is that if we do decide to file bankruptcy we will include the house because we’re so upside down and far from my work but what would we do then. I know I couldn’t get a mortgage right away and I don’t think we will have many rental options that will work with our large family (and a few pets). Needless to say she was not receptive and basically freaked out on us that we would even be considering that type of option.
Thank you again for your support, guidance and encouragement that I’m not alone out here.

I'm sorry, I'm a little dense right now... Please help me to understand better...
How does putting a third mortgage on your house help to pay your first mortgage? The fact that the house is worth less than the mortgage makes it even less logical for them to offer a third mortgage.
I would definitely be consulting a finance professional (an impartial third party
I met with a bankruptcy attorney today. That meeting alone made me feel better, like I actually have some rights or say in what will occur with our house. What he said to me is the mortgage company is willing to put the third loan on the house because they don't want to own the property.
He advised me to see a credit counselor which I believe would be required if we filed bankruptcy to make a budget. I don't see a way we can avoid bankruptcy at this point so we're going to follow his recommendation.
We also met with the MIL this weekend and she was more supportive this time. She said as long as we learn from this experience and that we're truly doing this to put the kids first not to be selfish or greedy. So that was much better as well.
The biggest thing now is waiting to be served the sheriff sale notice so our bankruptcy attorney can put through the ch 7. Once we get that we'll be able to figure out how long we can live in the house before we need to find housing.
Thank you again!!1