Husband and I have a corp that we dissolving as insolvent and plan to file chapter 7 soon. We have been workiing on reducing company and personal overhead as much as possible and living very frugally. We have moved all our personal accounts to a new bank and this week will work on moving our company account(for the new company we just setup) to that same bank. We just got a refi for our car thru State FArm (saved $175 a month). and want to go to our current bank (who knows nothing about the bk) to get the 2nd closed end mortgage on our house remod to lower the interest and drop the payment from $388 down to about $310 a month. She talks like it is just filling out paperwork, not like a major loan mod. We are going to see her this Friday. Husbands credit is in the 700's, only probably is debt to income ratio, don't know what it is, but it's bad.
We have already stopping paying all our credit cards this month and are giving them the "business has been really bad for two months, we are just trying to pay the mortgage, we will try to make it up next month" which is true. So we can hold them off maybe another month before they start reporting to credit bureaus.
Here's the hitch: we need a loan mod on our 1st mortgage badly. Our payment is $1326 on top of the $388 for the second. This year our business is not makiing the money it did last year when we were able to take dividiends out of the company (making adj gross income jointly of $73,000), this year we may have to live somehow off of the W2 income we make of about $40,000. Hubby's is only $22,000 and his name is the only one on the mortgage.
We want to get the obama makinghomeaffordable.gov plan. A refi is out of the question due to what we owe, vs. market values that have dropped. We have not missed any payments for 5 years and they have been on time.
We have contact NACA organization this week but have not heard back.
The calls are unrelenting already from credit card people but we are talking to them and just holding them off as long as possible so my husbands credit stays intact long enough to do the loan mod. But I don't know if that is possible. I've heard some loan mods take months and I don't think we can make it that long.
If we file personal bk chapter 7, close the one corp as insolvent and close it. We have now reopened a new LLC ompany and WE and the company have lowered expenses drastically and our new budget we can live on with a loan mod but not without one. I don't want to file bk to get everyone off our backs and then find out we can't loan mod.
Atty advised for us to bk soon, NOT reaffirm either the 1st (BOA) or 2nd (BB&T) mtgs and continue paying it and do a "ride thru" and in 2 years get a refi. We won't make it two years making that payment. WE can't make that payment now without letting the company pay it and take as a dividiend at the end of the year. I also saw some threads that said that if we DON"T reaffirm, the banks WON'T do a loan mod becuase we no longer have liability to even pay the loan mod.
Our main objective is to keep the house but be able to pay the mortage out of the W2 income. IN order to do that, we must have a loan mod, reducing interest (we now have 5.5 fixed), or stretching the term, or forgiving principal or something.
Please advise if you know something. We would like to bk as soon as possible after we have loan mod on the 2nd morgage (Friday) but we want to continue to get the 1st mortgage loan mod by the obama plan. Can we do that after bk 7?
If I call BOA, will they tell me if that would be a problem?
Would naca be able to help us get the loan mod even after bk?
Please help
We have already stopping paying all our credit cards this month and are giving them the "business has been really bad for two months, we are just trying to pay the mortgage, we will try to make it up next month" which is true. So we can hold them off maybe another month before they start reporting to credit bureaus.
Here's the hitch: we need a loan mod on our 1st mortgage badly. Our payment is $1326 on top of the $388 for the second. This year our business is not makiing the money it did last year when we were able to take dividiends out of the company (making adj gross income jointly of $73,000), this year we may have to live somehow off of the W2 income we make of about $40,000. Hubby's is only $22,000 and his name is the only one on the mortgage.
We want to get the obama makinghomeaffordable.gov plan. A refi is out of the question due to what we owe, vs. market values that have dropped. We have not missed any payments for 5 years and they have been on time.
We have contact NACA organization this week but have not heard back.
The calls are unrelenting already from credit card people but we are talking to them and just holding them off as long as possible so my husbands credit stays intact long enough to do the loan mod. But I don't know if that is possible. I've heard some loan mods take months and I don't think we can make it that long.
If we file personal bk chapter 7, close the one corp as insolvent and close it. We have now reopened a new LLC ompany and WE and the company have lowered expenses drastically and our new budget we can live on with a loan mod but not without one. I don't want to file bk to get everyone off our backs and then find out we can't loan mod.
Atty advised for us to bk soon, NOT reaffirm either the 1st (BOA) or 2nd (BB&T) mtgs and continue paying it and do a "ride thru" and in 2 years get a refi. We won't make it two years making that payment. WE can't make that payment now without letting the company pay it and take as a dividiend at the end of the year. I also saw some threads that said that if we DON"T reaffirm, the banks WON'T do a loan mod becuase we no longer have liability to even pay the loan mod.
Our main objective is to keep the house but be able to pay the mortage out of the W2 income. IN order to do that, we must have a loan mod, reducing interest (we now have 5.5 fixed), or stretching the term, or forgiving principal or something.
Please advise if you know something. We would like to bk as soon as possible after we have loan mod on the 2nd morgage (Friday) but we want to continue to get the 1st mortgage loan mod by the obama plan. Can we do that after bk 7?
If I call BOA, will they tell me if that would be a problem?
Would naca be able to help us get the loan mod even after bk?
Please help
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