Questions on filing

[SMinGA2]

That's a good reason for her to keep working... Having a job with good/affordable health benefits is rare these days!!

[Pandora]

I've been hoping to get the mortgage modified, feel like im just getting strung along.....been something like 5 months of calling every week, only to be told its still under review.

Have you run the numbers to see where your mortgage needs to be if modified? Remember, if they do a standard mod (i.e. HAMP type with waterfall rates) its not fixed and it will go up beginning in year 5 onward until it caps. It may also go up if you do not have enough in escrow due to rolling things into the back-end (ours has gone up twice since our perm. mod 2 years ago) due to insurance increases from filing BK (credit profiling state). We will go from our current 2% in another 3 years, at which time it increases 1% each year until year 8, which then will become fixed at 5% for the life of the loan.

I agree with the others - you cant afford your house. Ask yourself this: Would you rather be house poor and strapped after filing BK (either chapter) or have a life, happy family, and a bit of $ set aside by letting the house go? It would suck big time to decide to keep the house because you believe you can, file BK - then be 1-2 years into a Ch. 13 (or even pay and stay in a Ch. 7) only to have to turn around and let the house go in the end. Think of all that money you'd waste that could've been used in other ways or saved.

Material things arent important - family, health and happiness is

No question which one I'd choose...