Hope for Homeowners & BK

[PoorAnnie]

Since starting this whole process things keep changing by the day! We went and made a $200 down payment for the bk atty. So now it has been so great to be able to answer the phone and tell the creditors and now we have no more phone calls! I can plug the phone back in!

After we wrote out our expenses for the required credit counseling we see that even after the bk we will be just squeaking by. I found info about the new hope for homeowners program by the govt fha/hud

http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL

This seems like something that could help us but we are unsure how this works for someone who is going to file bk. We haven't filed offically yet (no papers filed/case number). Do we tell them (mortgage co) that we are going to file bk? We paid Sept. late and now in Oct and Nov we will not be able to pay since trying pay the lawyer and medicine for our child and plus w/ the holidays coming my husband is off on the days and doesn't get paid for them (nor any sick time) so his paychecks will be less than 40hr. Has anyone else looked into this or know anything about this program?

We have to keep the house since we have no idea where we could live with 5kids and now a bad credit score. From everything I have read here that you have to be current on your house in you want to reaffirm in bk but I don't think we will be by then unless my husband gets to work A LOT of overtime.

I am so stressed at the thought of lossing our house!

My husband says we are too broke to go bankrupt because we can't even afford to file for it! And that is not paying any cc and now the home too!

[lrprn]

I am so stressed at the thought of lossing our house!

My husband says we are too broke to go bankrupt because we can't even afford to file for it! And that is not paying any cc and now the home too!

When you are still having trouble making ends meet and have already stopped paying all your unsecured bills (credit cards, etc), then you really have only three choices:
1 - Reduce your expenses
2 - Increase your income
3 - Surrender one or more secured assets to remove the payment which reduces your expenses

Have you two sat down and worked out a realistic budget to see if you can make it financially after filing and still keep everything?

It is very, very difficult to think about giving up a home or treasured car. However, these financial decisions need to be made in a cold, emotionless way - the same way your creditors made and continue to make their decisions. A house or car is a thing, and things can eventually be replaced.

You can't make up for the stress and anger that comes from trying to keep a thing that you truly cannot afford. Better to rent (and it's a definite renter's market at the moment) while you learn to live within what you both make. There isn't going to be available credit like we've been using to make up our income shortfalls for a long time. A growing savings account is the best fall-back to have until the economy settles out.

This has probably been very difficult to read and even more difficult to think about, but it's an important part of the lesson that bankruptcy teaches many of us. Loved ones and being happy together without constant stress and fights over money is more important than keeping a thing that can eventually be replaced.

Hang in there, PoorAnnie. It will get bettter. Ask questions as you think of them - we'll help you any way we can.

[PoorAnnie]

The house nor the van that is upside down are not treasured things. It is just a matter of practical that with our bad credit and 5 kids I don't know where we would live. The house is only a 3 bedroom 1 bath so it is not like we are trying to stay in it and live the high life. Same with the van, how would we get another car that would fit us all in it and not break down since I have to go often to take my son to medical appts 1 hr away (no, we can't go to a closer office, he goes to a special university clinic that specializes in his medical condition). And we have no extra money to pay cash for a car if we let the van go. If we had another place to go to or another car I would have to problem to leave them behind.

We do understand the cutting everything out which we have even done more since first coming to this site and found some good info. Heck I am so good with streching a dollar for a meal we are now down to $120 for week of food for 7. (We were at $200.)

I did call the mortgage co today to ask them about the Home for Homeowners (H4H) and they said since we are in a fixed rate and we are not late he didn't think he could help us but couldn't stop me from filling out paperwork if I wanted toand we wouldn't find out anything for 45 days at least. He was defintely trying to discourage me from applying. We were 10 days late on Sept. payment and know we will not be able to make full Oct or Nov payments. And I told him that too. We will by Dec 1st have enough saved up to make 1 payment, so basically we will be behind till ??? who knows. So we are so confused how this will work out with us filing bk and being behind in the mortgage when we file.

[StartingOver08]

Annie, I don't know who your mortgage company is, but when I became behind in my payments I tried to make one payment (at that point I owed 2 payments because I was 45 days late) - the mortgage company refused to take one payment. They said 'all or none'. Keep this in mind. If you want to keep the house, you have to be current in your payments. The lenders are not as willing to work with us as their PR dept puts out....

I am surrendering my home in the BK.