By: Maria

Maria — Thu, 20 Nov 2008 02:39:12 +0000

My husband and I are are about 5 months behind on our mortgage and we have been struggling for two years trying to get caught up. We went into foreclosure last year around this time and with lots of phone calls and letters we finally were able to get a loan modification where we had to come up with $5,000.00 and they would put the rest of what we owed on the back of the loan. Now due some really bad circumstances we are behind again and can not possibly get caught up. We were trying to make a couple of other loan payments up until 3 months ago and then that got behind too. We do have one credit card that we have not used in over a year and we faithfully pay it every month, it is only 350.00 and we want to pay it off. My question is we live in Florida and we were looking into claiming chapter 7 but after consulting with an attourney he said that the courts will probably take our second vehicle because it is valued over $1,000.00 I guess we get an allowance of $1,000.00 and my 2001 Ford Windstar is valued at around 3,500.00 and that is the reason we told him we would not be able to file chapter 7 My husbands car is literally falling apart and he is on the road doing his sales job so I would need a second vehicle. Anyway I was just wondering if we claimed chapter 13 could we walk away from our house? Is that allowed? I mean walk away and not owe anything. After alot of searching in our hearts we do not think there is any way to be able to make our house payment on top of the other payments that the Trustee will come up with. Our anual income is only 35,000.00 and our house payment is almost $1700.00 a month due to the loan modification and a refinancing we did three years ago when our value in our home was quite high and now our property value is lower than we owe on this house…It dropped around $50,000.00 There is no way we can make our payments…What can we do? Thank you

By: manny

manny — Tue, 28 Oct 2008 22:41:32 +0000

my wife is a loan mod master. she managed to get our loan modified to a much lower rate so we can afford our payments, but we are behind on our taxes, and may have to consider our options, because this is not something we can just sit on. a re-negotiated loan amount based on current market analysis would be amazing, but i dont think it is realistic. if it's a possibility, we will wait, if not, then foreclose or bankruptcy would be an option we would consider.

Comments on: Don't Assume You Can File Chapter 7 and "Start Over"

By: Maria

By: manny