I need help!! For financial reasons, we have decided to stop paying on our primary residence/and CC debt this month as we have exhausted our options (drained cash, racked up credit card debt, etc.), to keep the business and house afloat. Hubby has got a good job, and I have recently got a job (thank God).
Current on mortgages, but won't be paying July's mortgages
BOA 1st Mtg = 585K, Int Only. 5.875%
GMAC 2nd Mtg = 270K, Int Only, ARM (Currently 5%)
Current Mkt Value = $600-750K (Hard to say with recent comps)
Loans/title are in my name only (not hubby)
We have jobs that should help "us" qualify for a loan mod. I couldn't qualify on my own, as my self employment income was significantly higher than my current income at my job. My current monthly income by myself is less per month than the first mortgage payment alone! Hubby has good income that we could use to qualify for a loan mod.
I really would like some resources on loan mod's, how they look at debt and 2nd mortgages, BK options, etc. Trying to put all of my options on the table and move accordingly.
- Once we go into default, do I contact the bank or wait for them to contact us if we want to qualify for a loan mod on the first?
- We would love to just settle the 2nd mortgage, as it will be years before we see values come back and the 2nd is totally under water? Is that realistic after going into default or will we have to wait until the NOD? We are in a non-recourse state (Washington).
- Are there resources for me to read to understand how they qualify folks for loan mod's/HAMP that include specfic information regarding income, "qualified" debt, and LTV?
- We have a ton of credit card/busines debt, how will that get looked at?
- If Hubby's income is used for loan mod, will that put him on the mortgage?
- What happens if I just decide to file for BK? Is that better/worse than trying to get a loan mod?
- Is it better just to walk away even if we want to save our home, and we could probably do it with current income if we only had to pay the first? Is that realistic?
Thanks in advance for any/all of your help. THis forum is a lifesaver. I found it about 5 days ago and I have spent every extra moment purusing the information. I am grateful for all of you that have shared your stories.