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Home > Reader Questions > We’ve Borrowed From Life Insurance and Profit Sharing and Still Underwater. – Julie

We’ve Borrowed From Life Insurance and Profit Sharing and Still Underwater. – Julie

Three years ago, my husband lost his job. He spent about 8 months on unemployment at which point a friend of his offered to train him in the field of Medical Recruiting. He was led to believe it would be easy money and one placement would equal 2 months salary or more in other fields. Catch was, it was 100% commission. He decided to go for it. He was in recruiting prior so how hard could it be? Well, then the Obama Care was passed and the medical field stopped hiring or using recruiters to help with hiring. Great, this happened just as my husband finished his training…he fought to try and get placements but no dice. So, back onto unemployment.

Back to looking for a job in a terrible recession. He was unemployed for 2 years. My salary and our savings barely got us through. We now have ZERO savings. Literally closed our account. We have had to use credit cards to start paying for things. The bills and debt are more than we can handle. We ha ve tried to refinance our mortgage time and time again with no luck. Because he has not been at his job a full 2 years, all the numbers are based on myself, alone, and our debt to income ratio is too high by about $20,000. Fast forward, he is now working but again 100% commission and he is just starting out so he does not have much business yet which means no income. Our mortgage is upside down. Credit is just about maxed out. We have already borrowed from our life insurance policies and my profit sharing. I am now just about to go down the drain. I am faced with the fact that I will not be able to pay our bills for the first time EVER. I don’t know what direction to go in. Where to go to get help. My mortgage broker has told me if I could find a way to get a personal loan of $20,000. that would not go on my credit report, put that towards the credit cards in my name, she could get us refinanced.

Please help or advise…we are feeling very alone and vulnerable and not sure what to do anymore. We have hit bottom.

Your Question(s)
1) What would you suggest?

2) Are there any investors that would possibly do a p2p loan for us to cover credit card debt so we can qualify to refinance our home?

3) Are there personal loans available that will not appear on my credit?

Please help…Thank you.

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We've Borrowed From Life Insurance and Profit Sharing and Still Underwater. - Julie by

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  • Kelsey

    It’s a shame but the banks won’t help you with refinancing your home or some type of loan modification if you are current on your payments.  I know this is risky, but it might make sense to stop paying for a few months & boy all of the sudden the banks will be more than willing to help you.  Of course, I’m sure you worry about your credit, so it’s a decision you have to think about.

    • Michelle Womble

      That’s right. They won’t help you at all while you are paying your bills on time trying to do the right thing.  It’s frustrating.

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