A little over a year ago my husband lost his job. He got a new job two hours from our home. We were approved for and bought a home in the new town with the idea that we would be able to sell our first home. Of course, at that time, the economy took a total dive and we are left with a home that we do not live in but owe a first mortgage of approximately 98000 and a second mortgage of 28000. We owe approximately 100000 on our second home. We have enough credit card debt that with both our our jobs we are 900 short per month and have been robbing peter to pay paul. We have no savings and four kids. To say we’re stressed out is an understatement.
Would we be smart to let the house in our hometown go into forclosure and stop paying both the first and second mortage and then work hard and diligently to pay off the other debt? I so don’t want to file bankruptcy because where I work I will most likely be let go. Please help?!?!
I think the situation is dictating the answer for you. It appears you have no choice other than to let the old house go and deal with the ramifications. And what will happen is after the old house is foreclosed on the lenders on the old house will come after you for a huge bill you probably won’t be able to pay.
But I’m curious what kind of job you have were bankruptcy would be a problem. If you have a security clearance than bankruptcy is less of an issue these days.
Regardless if you elect to seek protection from creditors under the bankruptcy laws, the reality already exists that being maxed out and soon to be behind on the old house your credit will be shot anyway.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.