Hello live in New Jersey and brand new to the site. Have a primary residence with a 1st that is serviced by ASC and trustee for Prime 2005-5 is US Bank National Association. Am assuming that US Bank National is investor but not sure. Also have an Equity line with Wells Fargo. Balances and arrearage are:
1st: Balance 265K and arrears are 53K
2nd: Balance 100K and arrears are 800 dollars
Home Value is approx. 400K.
Have been trying to modify the 1st mortgage loan since Feb. 2011 and had been staying current till just recently on Equity line.
Everything started in late 08 when my Landscape Design construction biz got so slow that I ended up closing doors by year end after 20 years. Had quite a bit of savings and my wife had and still has a Bank managing position went on the hunt first for a job at the age of 48 and then on a search for another biz to purchase. Landed on a food biz in March of 2010. Big mistake as I ended up buying a dud and closed the doors in May 2011. Now finding ourselves with no cash reserve as we lived off it for 3 years and invested the rest in a failed second biz. My wife's income is only 65k/year and before 2008 my income was averaging 170K and is now zero as I am still unemployed and looking hard for employment. Ist mortgage is at 6 7/8 and a payment of 2785 includes Taxes and Insurance. Equity is interest only @4% pmt 270/mo. BTW the second has offered modification but I have yet to go down that road.
1. Credit Card debt: 30K
2. Investment Property in North Carolina Behind in mortgage since Jan. 2011 and 2nd since March 2011. And is in Foreclosure since June of 2011 but presently trying to short sale it. It is also vacant with no tenant. Owe on that property about 40K then it is worth between Ist and Equity line. Both with Wells Fargo. Second has been Charged off and they have given it to collection company that has made me as low as 25k settlement offer on 101K Bal. Wish I could but cannot settle as that would give me positive equity.
3. Boat Repo in Feb. 2012 Deficiency Balance 68K
4. Medical Bills as wife had issues with all the stress 6K
5. Car Repo Deficiency Balance 4K
We presently have about 20k in cash as wife recently cashed in a pension with previous employer. And a Tax refund check of 6800. I have a line on possibly 2 jobs that have not been officially offered to me yet but have some promise. Either job would allow us to afford our primary " WHICH BY THE WAY WE POSITIVELY DO NOT WANT TO GIVE UP OR SELL " as our credit is destroyed and we really love our home and also have a son in the house that has his girlfriend living with us, as she has a really bad relationship with her parents. Plus they have a baby coming in December and they cannot afford to move out, as he is trying to get through school and get a good paying job... she works but does not make but 18k/year and he has a P/T job making about $350/wk. We do not ask them for any money as they can barely pay their bills, car loans, CC's and so on.
Until now ASC has not pressured us with the mortgage as we were trying to get modified but our debt to income was way off. When the Food biz was open I could show them cash flow on paper but there was no true income. They still want to put us through Hamp again, as I just received all the paper work for the third time. But with me having no income don't think we would qualify and even if I did get one of the 2 jobs our debt to income and all the bad credit history over the last year is a disaster.
We would obviously like to file for Chapter 7 and do qualify through the means test. But would also really like to keep our home. If we could just get modified and maybe put all past due on the back end and get a great rate reduction and be able to file Chap. 7, getting rid of everything else including other property as we do not want to try and keep it. We could maybe see some light at the end of this very dark tunnel. But the timing of everything seems to be the biggest problem. My parents have told us that they would lend us the difference of what we owe in past due mortgage payments and what we have in bank but we would have have to get even with ASC by the end of the month. Because they can only give us barely enough to get even. My bankruptcy atty said we could file for Chap.13 and put all rears on a repayment plan but everything I have read about 13 seems like it is a financial prison for 5 years. Plus it would cost us about 4300/mo just for the house payment between normal mortgage payments and repayment plan of rears for a whopping 5 years, and then if we cant afford it, we have a pile of crap left to deal with as all other debts come back and we have to scramble for a 7 losing our home to boot.
The ideal scenario would be get even with our primary by end of month. File for 7 get discharge in 3 to 4 months get then get employment and try and get modified on the first as we will probably fall behind again as we do not have enough income till I can get the right job to qualify for the Modification.
Another scenario is possibly to try and get modified now. As I was told I can get my son's to commit income per month towards household with a commitment statement signed by them. But I would not want them guaranteeing the mortgage in anyway...not sure how that works. As you already know my one son lives with us and the other, who is about to finish getting a divorce and who earns a high income over 120k/year may be moving back in with us after divorce to try and help our situation out. But that is still a little sketchy as his divorce is still not complete and unsure if he will be left and obligated with his present mortgage. He is only married about a year and a half with no kids so he will not be dealing with alimony. A bit much pressure to put on him considering he is dealing with a divorce...but he did say if he can get out of his mortgage obligation he would love to help us...also he is 27 years old. Then file a 7 and after discharge gain employment and relieve my sons of their presently needed help. Or get even with mortgage first if we cant get modified and then file 7.
Timing seems like the hardest part in all this!! Because we definitely have to file for Bankruptcy.
Any way a lot of scenarios.....a PILE of STRESS and not sure what to do!!!
Also one important piece of information we were just sent a certified " Intent to Foreclose" and the amount needed to bring mortgage current. But according to our attorney and theirs we are in the very early stages of foreclosure. They both said it could take a year in a half in New Jersey. But again we want to keep our home and if we let any more time go by we probably wont be able too!!
All advice on our situation is much appreciated and this seems to be a great site with lots of great information!!
Thanks in advance,