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We Can’t Afford Both of Our Mortgages, What Should We Do? – AR

“Dear Steve,

We have a 1st & 2nd on our home. The 1st is for 124K with Citimortgage, the 2nd is a home equity line of credit with Bof A for 250k due in 2015. Our home is now worth approx 220k. My husband has was unemployed for the last 2 years. Recently back to work. We have business that took a big hit with the recession & may have to close the doors if things don’t turn around in the next few months. Both mortgages say they cannot do modifications, We have not been late on our mortgage payments & we are not behind. We did not qualify for a mod with either of the loans. At this point what would you suggest we do? We will not be able to refinance as the house is not worth what we owe. We are in our early 50’s & are concerned with bad credit & not being able to purchase another home.

What should we do? Stop paying mortgae payments & let them forclose?

Do you think B of A would forgive part of the line of credit so we can stay?

AR”

Dear AR,

I think the first stop should be for you to go talk to a local bankruptcy attorney. Through bankruptcy it may be possible to strip away the second mortgage above the value of the house and that might give you the break you need. You’d be able to stay in the house.

Don’t waste any time in talking to the attorney. You don’t have a lot of spare time to play with.

You can click here to find a local bankruptcy attorney, contact them, and then come back and post an update on what you learned in the comments below.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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