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Can the Credit Card Company Take Our Home? – Carlie


“Dear Steve,

We are an unmarried couple. We have 3 kids 4 and under. He has 75k in student loans we both have $60k in credit card debt. I am a SAHM.

He just lost his job 4 months ago with no prospects in this state to find another one in the near future.

We have 2 homes. One is worthless and has no equity and we should just walk away from it. The other if we could sell it has $200k in equity. We tried selling it but can’t even get someone to walk thru it. It is priced way below market value…the problem is no one can get loans and no one is buying regardless of price.

My question is how safe is our home from the credit card companies? If we sell our home for just the mortgage value or give it to the bank we will have nowhere to live and no money to get a place to live. So we are in a bind. We are currently living off $300 a week in unemployment. Every month we go $3000 more in debt. What remedies do we have, if any? Can the credit card co. get a judgment and take our home or invade our bank accounts etc.?


Dear Carlie,

I am not a lawyer and you should find a lawyer to help you with specific legal issues. What I can tell you is that it is my understanding that a creditor could take you to court, you’d lose since you’ve broken the repayment agreement and the creditor could move to place a lien on the property to satisfy their debt.

But the big issue here is if staying in your current situation is even worth fighting for. Maybe bankruptcy is the way out for you to start over again in another place.

You say that one of your homes has $200,000 in equity in it but unless you can locate someone that can purchase the home then the equity only exists in a netherworld and not in your pocket.

The only way out of this situation is going to be to find work and if work is not available where you are, then you are going to have to move towards work.

If you are using credit cards to get through the month and you have no income to repay them, you’ve got to stop doing that. You are taking money from creditors without any ability to repay and some call that fraud or stealing. The creditors will at least.

Another option is that while you are a SAHM, I’m assuming that is stay at home mom, you might have to go out and look for work and leave your husband at home to care for the kids. If you did, you would not be alone.


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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