I bought my home in November 2004, by Dec 2007 the 1st mortgage payment increased by $1300 which I found very difficult to pay however stretching the funds of my credit cards I paid both mortgages until march 2008, since then I haven’t be able to make any payments and my house is under foreclosure.
Because of non payment of my mortgage one of my credit card creditors increased the interest rate from 8.99 to 29% making impossible to me to continue making the payment so i felt behind my credit card payments too this year. I owe about $50,000.
I haven’t filed bankruptcy because I’m looking to see if I do qualify for a loan modification so I could keep the house but only making the payment on the first mortgage. I been contacting a lot of companies that promise to help you but as I do have to give them money in advance I really don’t like that, I can’t afford losing money at this point.
Should I call 995 hope and get help from them? Should I call the bank directly? At what point should I file bankruptcy? Thanks for your help
Smart move. I can’t see a reason to pay anyone to check and see if you are eligible for a loan modification. You can do this yourself by calling your lenders. And don’t worry about the fact that you are behind on your mortgages when you call, they all ready know that.
Call your lender and ask them if you qualify for a loan modification program. If they say that you don’t then your next step will be to seek bankruptcy advice.
Unfortunately your situation has snowballed and from my experience it is very hard, if not impossible, for the average person to dig themselves out from under a second mortgage they can’t afford to pay and escalating penalty interest rates on the credit cards.
Even when you were current it certainly sounds as if you were able to make the mortgage payments by placing other expenses on the credit cards and increasing those balances.
Do this, call the bank and see if you qualify for their loan modification option and also call some local bankruptcy lawyers and make an appointment to go in for a free bankruptcy consultation to learn what bankruptcy would mean for you if you elected to go that route.
Your answer is going to come through knowledge and you’ll have the answer you are seeking if you follow this plan.