My husband and I are trying to figure which financial path to take. Our 1st mortage is for $200K and will go to an adjustable rate in dec. 2009, we also have a 2nd mortage with a our bank of $74K which is at a fixed rate and is automatically deducted from our checking account every month. Both mortages total $1743.19/month. There are several houses on my block that are for sale and in foreclosure. We are upside down about $80K. We also have $31K in credit card debt. We have $10K saved. We take home about $5300/month. If we didnt have a 1st and 2nd mortgage we can get out of our credit debt sooner. What options do we have? Should we file for bankruptcy and foreclose on the house or just foreclose on the house? We eventually want to buy another house. Any advise would be greatly appreciated.
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If you are willing to pay off the debt, I suppose BK is probably not right for you.
You could put the house on the market and try a short sale, offer the bank less than they are owed and see if they take it. Otherwise, your only other option is to let it foreclose. -
It's probably worth it to meet with a local bk attorney. Your income may have you looking at the means test pushing you into a ch13 bankruptcy.
By your description, you aren't insolvent, you're able to make some payments towards your credit.
Short sale or deed in lieu may be a much better option than bankruptcy.Comment
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