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Mortgage help--what to do?

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    Mortgage help--what to do?

    we owe more on our house than it is worth (surprise, surprise) and our % we pay each month (we are current) is about 45% of our income. Our CH13 budget is so lopsided, our attorney want us to "work it out" so that our we have some wiggle room.
    I'm going to call our mortgage company and ask them if can qualify for any of the relief programs that are offered. Any advice or suggestions? we plan to keep the home during the 13.
    THanks

    #2
    yeah...upside down with a mortgage payment that is almost double what it should be

    Walk away.

    Time too seperate emotional attachment from financial reality.

    Comment


      #3
      I agree with HHM.

      If you have a property which is more than 10% upside down (okay... maybe over 15% upside down), then just walk away. This is the perfect opportunity to be done with this.

      This is a business decision. You are making a decision not to have that debt.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

      Comment


        #4
        Can your attorney lower your interest rate on mortgages? I've read on other posts that for secured debts, sometims a lower rate is negotiated.

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          #5
          You are buying trouble by keeping a home that takes 45% of your income every month. Unless your income is artifically low for some reason right now, do not keep the house.

          Really your house payment should be no more than 36% of your base income. Unless you can figure out a way to substantially increase your income, it makes sense to walk away while you are in BK so you can truly get the fresh start you need.
          Filed CH 7 9/30/2008
          Discharged Jan 5, 2009! Closed Jan 18, 2009

          I am not an attorney. None of my advice is legal advice in any way..

          Comment


            #6
            Originally posted by flower04 View Post
            Can your attorney lower your interest rate on mortgages? I've read on other posts that for secured debts, sometims a lower rate is negotiated.
            Nope.

            The only time that is even possible in a BK context is through a reaffirmation agreement, but such an agreement on a long term loan is never in the client's best interest.

            Comment


              #7
              I could've written the original post.

              We are like you, owe more than what the home is worth, payments are interest only and a little less than half of our income.

              We've tried to modifiy our home loan but the mortgage company requires that you have "$1000/mo in surplus income". Hmm...if you have surplus income, you don't NEED the loan mod, in my opinion.

              We went against the grain and chose to keep the house, for several reasons, all of them being emotional. We have kids and love our house. Plain and simple.

              Good luck to you in whatever you decide!
              Filed Chapter 7: 3-22-08
              341 Meeting: 5-15-08 It went great!!!
              Last day for objections: 7-14-08
              Discharged and Closed: 7-21-08

              Comment

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