Help I'm worried have 1st appointment today with BK lawyer. I'm sorry long story.

[aish]

We live in California,
Well my husband lost his job on august 2009 (shorthly after we found out I was pregnant ) he was unnemployed for 5 months, we had to sell one of our cars in november 2009 to pay off some bills and needed expenses.

we have a mortgage balance of $89,000,-behind.
and a second mortgage of $49,000, current.
also 3 credit cards adding $15,000,-behind on one of them. and being on counseling since august 2009.

My husband got a job on late january, but is not permanent, he can make as low as $600 or as much as $2700 a month, couldn't find a better job, but still looking.

The only asset we have is the paid off truck (valued around $10,000) my husband uses to go to work same I use to take my daughter to school, he's working overnight now, so I'm able to use it during day....

since I'm due in May, we were thinking in trading or selling the truck for an suv and so we can all fit in there but now are scared that we would loose everything...

can we keep the house?
the truck?
what if we sell the truck, pay late bills on mortgage and down payment for a new one?

if we keep the house would the second mortgage remain???


is there a any hope for us???

Please helppppp!!!!!

[momofthree]

If I were in your shoes (this is not legal advice, merely what *I* would do in your situation)

1. I would not file bankruptcy yet. Your income is too unstable, your unsecured debt is relatively low, and you are pregnant--which means you're at risk for unexpected medical bills in the near future.

2. I'd cancel the credit counseling and not make the credit card payments. Why are you past due on your 1st mortgage but current on your 2nd mortgage and credit cards? It should be the other way around. If you plan to file bankruptcy, paying the credit cards is like flushing money down the toilet. Spend your money in this order: 1. food 2. lights/water 3. gas & insurance for the car 4. 1st mortgage payment 5. everything else...

3. IF you can't fit a new baby in the truck, then sell the truck and buy a family car in cash. If there are months where your only income is $600 a month, then you do not want to take on a car payment. That's just asking for trouble.

What is your home worth? Your 2nd mortgage will not go away by filing chapter 7, but some people have luck settling it after filing if their home value is less than the balance of their 1st mortgage, leaving the 2nd virtually unsecured. (ex: house is worth $90k, 1st mortgage $100k, 2nd mortgage $30k)

[aish]

If I were in your shoes (this is not legal advice, merely what *I* would do in your situation)

1. I would not file bankruptcy yet. Your income is too unstable, your unsecured debt is relatively low, and you are pregnant--which means you're at risk for unexpected medical bills in the near future.

2. I'd cancel the credit counseling and not make the credit card payments. Why are you past due on your 1st mortgage but current on your 2nd mortgage and credit cards? It should be the other way around. If you plan to file bankruptcy, paying the credit cards is like flushing money down the toilet. Spend your money in this order: 1. food 2. lights/water 3. gas & insurance for the car 4. 1st mortgage payment 5. everything else...

3. IF you can't fit a new baby in the truck, then sell the truck and buy a family car in cash. If there are months where your only income is $600 a month, then you do not want to take on a car payment. That's just asking for trouble.

What is your home worth? Your 2nd mortgage will not go away by filing chapter 7, but some people have luck settling it after filing if their home value is less than the balance of their 1st mortgage, leaving the 2nd virtually unsecured. (ex: house is worth $90k, 1st mortgage $100k, 2nd mortgage $30k)

momofthree, thank you for answering my questions, I really appreciate it

1- I was thinking about this (wait until baby's here) too, but I'm afraid to loose the house if we don't move on fast.

2-we've fallen behind due to little to no money, and if we stop making payments to 2nd mortgage they will come take the house, so we thought it will be better to continue making 2nd mtg payments...
I'll stop making cc payments and start paying 1st mortgage.

4-we were thinking about this but were afraid if this could be seen as fraud or something by the trustee.

I will be calling realtor tomorrow to find out how much our home is worth, I thought it was worth 89,000 since the last house they sold by my street ( foreclosure) was sold for that amount, but I'm not sure.

I had apt today and the lawyer said he will check if we can keep the house and get rid of the 2nd by doing c13, if house is worth less then we owe...
if not, we'll be filling c7 and would give up the house.

[LALADY]

How far behind are you in your mortgages? It is taking forever for CA homeowners to be kicked out of their homes. Have you received a notice of default(s)?

[aish]

How far behind are you in your mortgages? It is taking forever for CA homeowners to be kicked out of their homes. Have you received a notice of default(s)?

we're 3 months behind, were keep receiving a note on the door to call the guild number for delinquent accounts and that's about it.

[momofthree]

2-we've fallen behind due to little to no money, and if we stop making payments to 2nd mortgage they will come take the house, so we thought it will be better to continue making 2nd mtg payments...
I'll stop making cc payments and start paying 1st mortgage.

You have this backwards, unfortunately. It's the first mortgage who will take your house if you don't pay. If your house is worth $89k and you owe $89k on your first, your second mortgage will not take your house from you--even if you go years without paying (unless the market miraculously recovers). Foreclosure costs them a lot of money and if they take your home, they have to pay the first mortgage off, and then pay all the fees associated with the foreclosure and sale, and then keep whatever is left. It would actually cost them more money to foreclose than to write off your loan as a loss...

If you're going to skip paying one of your mortgages, you skip the 2nd, NOT the first.

And, yes, if you're in CA, it will take at least a year for the first to foreclose on you. I have a friend who hasn't made a single payment since Dec. 2008 (yes, you read the year correctly) and they are still living in their home...(we're in the central valley)

I wish you luck in your journey. Keep us posted....