Hi - newbie here so be patient please, I've been following the forums for a few weeks but I'm sure I don't have all the language correct.
Chapter 7 discharged 2 years ago after a job loss. Reaffirmed on both 1st and 2nd as they were current and always had been.
WF 1st- original 200K in 2004, balance 125K
WF 2nd HELOC- 32K
County Auditor Valuation- 178K
Want to keep the house
My husband took out a loan from his 401K and we have used those funds to cover monthly shortages hoping my employment situation would improve. It hasn't, we are in our 50's so it really doesn't look promising.
In February we applied for assistance from the Save The Dream Ohio fund and were awarded 18 months mortgage payments, rescue payments and property tax payment, those funds were just sent to
WF and the county auditor the beginning of this month. We feel very lucky to have this cushion.
During the time of waiting for the funds to be disbursed, we feel behind on the 2nd for 2 months. WF sent us an "options"
brochure which indicated settlement. We paid the 2 payments but will not be making this months payment. When I called them they are willing to settle and or do a modification and want all the financials we just sent to the hardest hit fund office. I have no issue with that because our financials are in dire straights there is nothing strategic we don't have the money.
My question is, we have 5K to settle, we've paid on the loan for 9 1/2 years and put 3K down before our bankruptcy. Should we proceed with the option to settle? I also see in these forums that most look at 10%, should I start with that or go with the 5K since that is what will show in our account?
When the loan hits 10 years we will be making principal payments which is in April 2014. Currently the loan is at 4.25%. Your advice and comments would be appreciated.