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We Can Get a Hud Section 184 Indian Loan in Two Years. Should We Do a Short Sale or Foreclosure? – Christina

“Dear Steve,

Husband lost job 3 years ago. He is totally disabled now. We receive SSDI and we have another 5 years of Long Term Disability Insurance. Because we are not behind in mortgage we were recently able to streamline the 1st mortgage and lower payments.

What is draining us financially is the HELOC. We have tried to sell home and house is underwater at this time. We are pulling out almost $1800 a month to keep up. Within the year we will no longer be able to do this. We do not want to lose our home!

Attorney @ $400. for 45 min.told us to take loss, there is no hope for us and to dump it! We have had house on market 3 times in last year. Short sale, credit rating dumps…

Should we dump house at a loss….short sale? Foreclose? Ruin credit.. Take our losses and wait the 24-36 months before we can buy again. Husband qualifies for 184 Indian loan in 24-36 months if we foreclose or short sale. Is it possible to negotiate the Heloc with hardship? We have been told that it is almost impossible to do anything with a Heloc.


Dear Christina,

Have you talked to a bankruptcy attorney yet? If not, you should. They may be able to strip the HELOC off in a bankruptcy but stay in the house.

You can click here to find a local bankruptcy attorney.

Once you talk to them come back and post an update in the comments below.

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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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