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Toddlers: 12 - 24 Months
Can we talk bankrupcy?
Anyone with experience in this? It looks like this might unfortunately be the path for us...and we might be fighting to keep the house too. We aren't late on anything, yet, but its getting bad.
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Re: Can we talk bankrupcy?
I have not done it myself, but I know quite a few people who have. It will trash your credit, but at least it starts over - if you can't make payments or whatever and drag out attempts to pay off for years your credit will suck anyway.
Just for an example - my grandparents filed a few years back. They took 2 years to rebuild their credit (keeping their house, but getting rid of everything else), then were able to finance a 200k building loan. Around here 200k is a 3000sf house.
Anyway, GL with everything. I'm sure it must be tough to be in this position. DH has some crap credit, but we are slowly working on things. Only you can know your limit of what's doable.
Plus, if your discharged debts are medical vs a ton of cc debt, lenders will notice that and it won't look as bad for later.
It varies state to state. You will most likely want to look into Chapter 13. It's a debt restructuring plan that allows you to keep your home and cars as long as you continue making payments on them. Your debts will not be totally wiped out, but you most likely will only pay a small fraction of them.
Talk to a lawyer.
Yea I think we are going to make an appointment with one for next week. We aren't behind in anything, but we are struggling so badly right now, and it doesn't seem like its going to get better. We are also like $100,000 upside down in our house. If things keep going like it is, we will never be able to leave this house, let alone Las Vegas.
I filed... in NV. I had thousands in medical bills that was impossible for a college student to pay off. If you want to talk about it email me at franciscainvegas@yahoo.com I can give you my lawyers name and answer any questions.
It is an unpleasent process, if it can be avoided I recomend it. It has been a few years and I still can't get anything in my own name. If it were not for DH's credit and before my sister would co-sign for me I dunno how I would have even qualified for an apt. I want to start rebuilding things when my 7 years is up... but it is going to take time
I feel for you and everyone in the LV area. My MIL lives in Henderson. She bought her home in 98 before the boom, and its valued at less than she paid for it then. Her mortgage is paid off, but she's still struggling. She's a casino employee and her hours have been getting cut. She had planned to retire nex tyear but its been pushed back at least 5
Get help before you're in too deep. Hang in there!
I don?t know much about it but it does let your credit start over. This may help in a few years when trying to buy a new house or a car b/c the lenders see it as starting with a clean slate. That?s what happened to some family friends of ours but I?m not sure if this is common or not. GL with everything!
I love my crazy child!
My Bio
I feel you on that, we're $300,000 upside down on our house... it's a good thing I plan to raise my family in it!
First thing is to contact the bank that holds your mortgage. File for hardship, which means you basically detail your monthly financial situation, and they compare that with the current value of your house AND your payments. You may qualify for a loan modification as a result.
Because our house had decreased in value so much AND the fact that we were in a 5-1 ARM, the bank changed our loan to a 15-year balloon. Still not a 30-year fixed, but at least we're paying principal now AND can hopefully refinance or pay it off by the time the 15 years is up. Our monthly payments DECREASED by $1,000/month. It has made a world of difference.
I would AVOID filing for bankruptcy. Try to negociate with your lenders, or go to a REPUTABLE debt consolidation firm. A lawyer can probably refer you to someone.
During this time, the lenders are more willing than ever to negociate and work with you... the banks really can't afford to take more losses!
Best of luck to you... you are certainly not alone in this.
Talk to your lender (CC's, house, medical bills, whatever) and try to get a modification. Get an attorney to help you aggressively cut those bills.
If after that, you still cannot pay your bills, and have to file bankruptcy or do a short sale, stop paying your mortgage at that point. A lot of people keep paying their mortgage when the bankruptcy ball gets rolling, and it doesn't do them any good. If you are going to leave your home, you will need that cash to pay a deposit and a few months of rent on an apartment. Plus, at that point it doesn't make a difference to your lender whether they got another $5K out of you or not, but it will make a huge difference to you.
Good luck!