Hello everyone. I have been lurking in this forum for a few months now and trying to educate myself on what to do about my situation. So far, I must say, I appreciate all of the help everyone has provided to each other, I think it's wonderful that there is a forum like this to help people manage difficult times in their lives.
So here is my story, and I would appreciate some feedback and support!
I bought my house in June 2006 (AKA the peak of the bubble). I paid $150k. I have two mortgages (80/20). It was zero down, interest only, and my payments until the rates reset were $1100 per month. Obviously, knowing what I know now, this was an incredibly bad purchase. The house needed new windows, a new furnace, other repairs, so I payed what I could out of pocket, and financed the rest. The house today is worth maybe 90k, and I owe 145k. I was able to finally do a harp refinance after years of trying to work out a plan with my lender (a major bank in the south) who services both loans. At the time of the purchase I was single, 2 years later I got married, and now have 2 children. These events have been blessings in my life, but we are outgrowing our home, and are very far underwater. The mortgage is in my name only. When I refinanced last year, they suggested I put my wife on the note, but didn't think it was a wise move.
In addition to being underwater, we(I) also have a considerable amount of cc debt, approximately 39k, which is in my name only. Again, a lot of this has to do with being in an older home, trying to keep afloat, feeling ashamed and guilty about losing the house, irresponsibility, and so forth. I am not proud of where I am financially, but buying the house, with bad advice and at the wrong time, unfortunately started me on this downward spiral. We also have a car loan with about 5k left to pay, which is the only jointly held debt. Again, all other debt is in my name only. The other significant debt burden is my student loans, which total 50k, and after graduating this Spring, are now in repayment.
My income is about 62k annually before taxes, and I have a family of four. After paying the mortgage of about $700 per month, cc ~$650 per month, car payment ~$250 per month, student loans ~$550 per month, there is basically little left for clothing, food, gas, utilities, etc. I have been living and filling the gaps with cash advances(dumb I know), but due to my high balances, those are no longer going to be offered. We have someone who wants to buy our car, that is jointly owned, and I'm considering selling it to rid ourselves of that burden and to eliminate my wife from any debt. My credit is still okay. Around 710. I have never missed a payment or have been late, but that's mainly due to shuffling and sooner or later, it probably will happen. I have also been using the cards to pay for fuel, groceries, etc. but I know I need to stop that, and prepare for what may have to happen.
If we sell our car that we owe money on, we still have 2 much older cars with high miles. I'm wondering if it would be wise to buy something else in my name while my credit is still good before filing, or waiting until after filing to purchase something with horrible credit? I have maybe 3-4 months before the "accounting shifts" and other trickery will start affecting my credit.
My wife is a stay at home mom, and will not be going back to the workforce for probably another year, so her income is obviously zero. With daycare costs, and job prospects in her field, it wouldn't amount to much right now. If I did file, it would be only me, and hopefully wouldn't affect her in any way.
So, I guess I'm just looking for some support and hope. I feel awful about the situation we are in, but I am thankful to have a stable job. Any thoughts on what I should do? I have not spoken to an attorney yet, but I am planning to after the new year. Thanks!
So here is my story, and I would appreciate some feedback and support!
I bought my house in June 2006 (AKA the peak of the bubble). I paid $150k. I have two mortgages (80/20). It was zero down, interest only, and my payments until the rates reset were $1100 per month. Obviously, knowing what I know now, this was an incredibly bad purchase. The house needed new windows, a new furnace, other repairs, so I payed what I could out of pocket, and financed the rest. The house today is worth maybe 90k, and I owe 145k. I was able to finally do a harp refinance after years of trying to work out a plan with my lender (a major bank in the south) who services both loans. At the time of the purchase I was single, 2 years later I got married, and now have 2 children. These events have been blessings in my life, but we are outgrowing our home, and are very far underwater. The mortgage is in my name only. When I refinanced last year, they suggested I put my wife on the note, but didn't think it was a wise move.
In addition to being underwater, we(I) also have a considerable amount of cc debt, approximately 39k, which is in my name only. Again, a lot of this has to do with being in an older home, trying to keep afloat, feeling ashamed and guilty about losing the house, irresponsibility, and so forth. I am not proud of where I am financially, but buying the house, with bad advice and at the wrong time, unfortunately started me on this downward spiral. We also have a car loan with about 5k left to pay, which is the only jointly held debt. Again, all other debt is in my name only. The other significant debt burden is my student loans, which total 50k, and after graduating this Spring, are now in repayment.
My income is about 62k annually before taxes, and I have a family of four. After paying the mortgage of about $700 per month, cc ~$650 per month, car payment ~$250 per month, student loans ~$550 per month, there is basically little left for clothing, food, gas, utilities, etc. I have been living and filling the gaps with cash advances(dumb I know), but due to my high balances, those are no longer going to be offered. We have someone who wants to buy our car, that is jointly owned, and I'm considering selling it to rid ourselves of that burden and to eliminate my wife from any debt. My credit is still okay. Around 710. I have never missed a payment or have been late, but that's mainly due to shuffling and sooner or later, it probably will happen. I have also been using the cards to pay for fuel, groceries, etc. but I know I need to stop that, and prepare for what may have to happen.
If we sell our car that we owe money on, we still have 2 much older cars with high miles. I'm wondering if it would be wise to buy something else in my name while my credit is still good before filing, or waiting until after filing to purchase something with horrible credit? I have maybe 3-4 months before the "accounting shifts" and other trickery will start affecting my credit.
My wife is a stay at home mom, and will not be going back to the workforce for probably another year, so her income is obviously zero. With daycare costs, and job prospects in her field, it wouldn't amount to much right now. If I did file, it would be only me, and hopefully wouldn't affect her in any way.
So, I guess I'm just looking for some support and hope. I feel awful about the situation we are in, but I am thankful to have a stable job. Any thoughts on what I should do? I have not spoken to an attorney yet, but I am planning to after the new year. Thanks!
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