Several years ago my wife and I lost our home to foreclosure in NC. The bank sued us for a deficiency judgment which of course we were unable to pay, because we could not even keep up the house payments despite emptying our life’s savings.
Today, four years later, this judgment still hangs out there, gathering enormous amounts of interest (Currently the amount is $56k on an original loss of around $30k). My wife and I struggle to just make enough to pay rent and keep ourselves fed, and this $56000 judgment may just as well be 56 million, there’s no way I can see to pay it back in our lifetimes.
If we poured all our spare cash into it each year, we could barely keep up with the interest. We have petitioned the bank asking if a partial settlement is possible and they have refused.
How do we deal with this? How can we settle this debt in any way we can afford?
I can feel your pain but I’m left wondering if it isn’t time to take action more than begging for a better payment. Even if you got the bank to agree to accept less than the full amount they would want it in a lump sum. If you can’t pay that, which it sounds like you can’t, then you are still left with a debt, growing with interest, that you still can’t pay.
Without reservation I can tell you that you need to go and talk to a bankruptcy lawyer. This obligation can be totally eliminated with bankruptcy and since you are just making it from day-to-day, the elimination of this debt can give you some financial and emotional breathing room to let you move forward with your life.
As a friend, I urge you, to click here for bankruptcy information. Talk to a bankruptcy lawyer now and let tomorrow be a new and better day for you.
Let me know what you decide to do.