Separated/Divorcing ,Upside Down

[elk93001]

Here is my situation.
Late 2008 my wife walked out on the mtg and helo since she claimed that she would not ask for anything on child support. Her gross is $40,000 more than mine. My first loan is $165,000 with a pmt of $1096.13 per mo. with WellsFargo andmy Helo is with the local credit union $118000 balance with a $1195 mo pmt. To sell the house would put me in a hole even further. I have contacted both lenders. Wells Fargo is asking for the hrdship letter, two recent paystubs and itemized xpense list. The helo lender does not want anything to do with me. I had help from family and had to borrow from my retirement to keep up. I am going to be running out. I put all of my credit card debt in a management program to stem any bleeding.

Due to my job, cannot declare bankruptcy or foreclose (or I don't have a job.) In addition, regulations require that my current employer approves of any other job I may take (I am also time limited due to current work obligations and visitation that I have with my 3 sons.)

I would like to honor my loan obligations the best that I can. I know that my credit has taken a hit, but I can fix that with the right modification. Help
The marital situation has me very depresse for the sake of the kids and myself,but losing my house and possibly my job (to foreclosure/bankruptcy) has me feeing like I am at the end of my rope.

[The Professor]

First of all, you need to take a deep breath and step back a bit. You are at the right place in terms of gaining a better understanding of how to deal with your current situation. Let's start by having you answer a few questions.

1. In what state is your home located in?
2. For each loan on the property, indicate the current loan balance and whether the loan was created at the time you purchased the home and the entire loan proceeds utilized to pay for the home.
3. What is your estimate of the home's current fair market value?
4. Have you occupied the home as your primary residence since purchasing it?

Daniel

[elk93001]

1.) I'm in Pennsylania.
2.)1st. Loan balance $165,000 We bought the home in 1999, refi'd in 2002 (due to loan rates being lower and having more equity in the home we lowered the original loan monthly payment by $200 and got rid of PMI . The Helo was done in July 2007 (in addition to the frst mtg. We used it to consolidate other debt put into the home, some renovations etc.) The current Helo balance is $117,000.
3. Home's fair market value is about $275000 at best. (the home across the street sold for 264000 3 yrs ago so with the market being worse than 3 yrs ago, my $275000 my be generous, at best) The homes around here, when they sell have taken a hit as far as selling price.
4. I have occupied the home since 1999

[cactus77727]

Hi Elk,

I don't have any input about the house. Just wanted to say hi. There are many struggling in their loans. I can't imagine the added marital stress too. You are taking the right steps. Assess, research, and determine some kind of plan. I wish you a better future. Take care.

Cactus in Arizona