what is the smart thing to do?

[sumsitup]

We are in debt. the total amount is 745,000. the home 608k, First 297k, Second 220K ,Third 91k. ARM and Heloc's Credit Cards 60k, Cars 18k 5th wheel 19k and a family loan of 40k. If the home doesn't appraise for less the 297. I cant do a lien strip. I think the fair market value is 275k-299k but haven't wanted to pay a for appraisal since money is tight.

I want to keep the house and strip the 2nd and 3rd. Cram 5th wheel to FMV and keep a few paid for assets. We have equity in the cars.

The bank had no problem appraising the house for 608K when the market was good I think she did some quick zillow to determine the value and a few weeks later we had the money, Now how to get it appraised for a chapter 13 and to get it to appraise it for less 297k. ???? this area is full of REO and short sales foreclosures.

I make 65k a year wife at one time was making 70k a year before she started her own business. This years income could be 80k for the both of us since economy is bad.

Can we do a chapter 7 and keep the house?

What is the smartest thing to do? ( already talked with attorney)

Sumsitup

we live in California

[HHM]

You don't make enough to keep that house. I know the real estate market is bad, but I think you are a bit optimistic if you think anyone will appraise your house for 50% or less of the original value.

Assuming your house really is worth $280, you shouldn't keep it anyway since you have negative equity to the tune of over $300. Even if you were in good financial shape, the smart move would be to dump the house, wait a year or two and buy when the market is still down. Reason being, you would never really be able to dig out of that much negative equity.

Chapter 7 doesn't make much sense because you have mostly secured debt; chapter 7's aren't much help there unless you plan on surrendering the property.

You are going to have to face the realization, at some point, that you need to dump the house.

[AngelinaCatHub]

In today’s money, even 80k isn't a lot. One thing I would consider is, if you can logistically move out of that high taxed state that would be well. From outward appearance as we all may have done, you lived beyond your means. Times are going to be tough and what you are doing now will free you of a yoke of burden. Let things go, you are on a new frontier of life and freedom. I wish you and yours well my friend. 'Hub

[MajorMike]

I don't understand how someone can get 3 mortgages....wow!
I'd be sick....and in an ARM at the same time??
wow....Good Luck to you pal

[sumsitup]

HHM- your avtar makes me thirsty. we have lots of sweat equity in this house and could just leave it but are exploring options. Alot of people are doing that here, I stand a good chance of having it come in 297k we paid
370k. most bigger homes are selling for 330k -310k but in the end we might let it go. I can walk around the block and see the same house selling ar REO 279.

For the last 10 years the wife and i made 120k a year combined, this year different story.

oh we got the 3rd by charging on a open line of credit that was never closed.

After talking with the attorney he thinks we can strip the 300 equity and file chapter 13 with 1% pay back. does this sound even possible?

thanks

sumsitup