Can a Ch. 13 save my house even if I can't afford current mortgage?

[cityish]

I am over-mortgaged right now. The mortgage and HELOC are $210k combined; my income is $38k per year as a single schoolteacher.

For the past four years I was making ends meet by having a tenant live in a rental unit on the property with me. After a series of unexpected, expensive maintenance issues and repairs to the property, my most recent tenant broke the lease suddenly and gave me a month's notice that she was leaving. At that point I was so discouraged and disgusted that I decided to let the house go....

I can't bear the thought of being a landlord again; I've since moved on to an apartment and I have my house listed on the market with a realtor. I know in my heart it will not sell. The real estate market is a bloodbath down here in Orlando right now.

I don't know a lot about Chapter 13 bankruptcy except that you can negotiate a lower payment plan on unsecured credit cards. But can you negotiate a lower mortgage payment? If my mortgage payment could just be lowered a little bit --- permanently ---- I think I could afford the house again and would gladly move back.

Thanks for any and all advice.

[Flamingo]

Unfortunately, bankruptcy is not that easy...otherwise the filings would be out of sight! the only way to change the amount of the mortgage payment on your residence is to refinance a lower rate or sell the house and get rid of the payment. If you cannot afford your house payments and are behind, Chapter 13 can save you from foreclosure and those late payments can be included in the Plan. Right now there are many folks who owe more on their house than the house is worth and many are just walking away because they just can't afford the payments anymore.

The real estate market is terrible everywhere. Our friends' mother had a gorgeous home on the market listed last summer in a popular area here in our state; They had to lower the home $85,000 for it to finally sell last week and the home was not overpriced when originally listed. She has to be moved to assisted living and needed the sale proceeds to help her pay for assisted living. The young couple that bought that house got a huge bargain; if I was an investor and had the funds in today's economy, a killing could be made cause when the housing market goes back up, those are the folks who are going to make out well.

[Flowers]

give a call to your mortgage company's Loss Mitigation department. Ask them to help you modify the loan.

[chellyalb37]

Well, NO sorry we have been fighting to save our house through a chapter 13 and it looks like we care not going to be able to save our house. Lawyer is the worst Mortgage company will not work with us at all. Trustee are VERY mean and uncaring. They want to see you starve and your family to be homeless and have no food,clothing, or a health. Chapter 13 has runied every thing and our lives are in the hole. We live day to day wondering what is going to happen. It SMELLS!!!!

[2confused]

So, you don't have a second? Have you heard of HOPe? Perhaps your mortgage company can help you work something out.