Ok, I HAVE NO MONEY TO PAY THE MORTGAGE?

Question

This is all my own fault, and my friends fault. We are up to our ears in credit card debt, and our mortgage rates are going up in one month to top things off. Our credit scores suck at this time. I make $630 every two weeks, and my share of the mortgage is $644 a month, not to mention car payments, insurance, gasoline, food, cell phone, a 2nd mortgage $6,000, ect. Thats just the tip of the iceburg. We can't pay this months mortgage because theres no money,AND THIS IS WHY WE'RE GOING TO LEAVE THIS CONDO AFTER TWO YEARS OF PAYING ON TIME. What would you do? They sent us a Buy-out papers to give to some friends of ours that MIGHT buy it, but I feel its going to not happen...

Answer 1

Please dont think that its the end of the world! you have to phone your mortgage company and explain that your unable to make your payment this month! if you talk to them they may be able to come to an agreement! PLEASE DO NOT IGNORE IT! You could say to them that you'll make the payment up over the next couple of payments and most companys will agree to this. Everyone can get into some sort of difficulty now and again but if you take steps NOW hopefully it wont come to you having to sell your house etc

Answer 2

First stop trying to sell mortgages... you sell houses, not mortgages! Now, if you buy a house for $100,000 and sell it 5 yrs later for the same amount. The bank takes whatever is owed on the mortgage to that date and the remainder is what you have left. For example, if you paid out 17,000 in those 5 yrs, depending on your interest rates and monthly payments, you may have paid the actualy principal of the loan down by $8000, so the differennce between the sale and the remaining balance would be $8000, that is how much money you would see. (course Im not factoring in other expenses) just simplifying for ease of understanding. Now even after 5 yrs of paying your mortgage, 8 grand may not seem like much ( and you have to factor in all the property taxes you've paid, plus repairs and maintenance that you would not have paid as a renter, but in the end, you didn't have anyone telling you how to live and making your life miserable and you walk away with a bit of money in your pocket if you are lucky. Most times people sell their house for more than they paid for it, not the exact same amount... so add to that a 50 or 100 grand increase over what you paid, you're laughing!

Answer 3

No matter what you do pay your 1st mortgage first and always. The 2nd mortgage can take you to court but they cannot foreclose your home since you are making your 1st mortgage payments. The 1st mortgage is first.

You can also try to refinance. Try refinance.com, if your home has some equity and you and your roommate can pay for it, you just might qualify.

Hopefully you can sell the home and have a little extra to buy yourself another affordable home. But it you don't you and your roommate can also consider Bankruptcy. I know a lot of people won't agree with this route, but at least you can save your home and you can start all over again. You can also talk to a bankruptcy attorney, he will advise you of your options. A simple phone call can fix your problems.

I could forward you also the mortgage counselors #, the person who helped me. Again a "free" consultation wouldn't hurt. You have many options.

Good Luck to you.....

Answer 4

Two ideas come to mind:

1. Go to your credit union. Show them that you paid on time. If anyone is able to help in a refinancing it will be a credit union. That is if you aren't too upside down on your mortgage.

2. Go to a credit counseling service. I'm sure your credit union could point you in the right direction.

I would also consider taking in a room mate to help share the bills. Even if someone has to make the living room their bedroom, despirate times call for despirate measures.

If you have a 401k, you might be able to take a small loan or hardship distribution from it to pay the difference between what your condo is worth now, and what you owe on it.

From a credit standpoint, a foreclosure is the worst thing you could consider. I would even look to bankruptcy protection before I would let a foreclosure happen.

Good luck to you.

Answer 5

You're in sad shape. Have you considered cutting out all the non-essentials ? Sell the car and get a beater which runs. Dump the cell phone. Folks lived for decades without them.

Get rid of anything non-essential and start controlling your debt. You may have to work out a repayment plan with your credit card issuers, as well as payment plans with both your mortgages.

If you're not willing to go through all that, then it's time for a short sale or foreclosure. If you think your credit ratings are bad now, wait till THAT'S over with.

Answer 6

The hell with the credit card debt.. you need to live somewhere.. call the credit card co's and tell them you need to work out way to pay otherwise they won't get their money.
Sounds like you'd qualify for that program that was just in the news.. if you can keep making your payments. It's only for the ones who haven't fallen behind yet and are facing a rate increase. I'd also think about the buy out if it would end the pain.

Answer 7

you can do this,if you set your mind to it.cut up those cards now!get in touch with everyone and get the smallest payments you can,do you need that car?that cell phone?buy cheaper food!you need to do a money makeover immedietly.tighten your belts and beg all your creditors for mercy-i mean time to sort your self out.have you got spare room in the condo to rent out?can you and your freind share a room? do you have sky etc, ditch it.right now the only things you should be spending on is anything that will bring in money.
i have been in this position,my credit score was nearly negative!i had no income at the time and a house about to be repossesed.even the library would'nt lend me a book :-) its been 2.5 years since then and things have improved greatly and my income is still minute.

Answer 8

Need more info to answer