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    "catch 22"

    Debt ratio is too high to do a loan mod, but if we file bk to reduce our debt ratio, we probably won't get the modification!!

    HERE IS A RUNDOWN OF OUR SITUATION. SORRY IF IT IS TOO MUCH INFORMATION, JUST DIDN'T WANT TO LEAVE ANYTHING OUT.

    We live in Georgia.

    We bought our home 2 years ago and put 20% down (owe 192k on a home we purchased for 243).

    The mortgage is with our credit union, with whom we also owe 2k on hubbys car whi ch is worth 6k, and we also owe them 8k for a Visa.

    We haven't paid our mortgage since 10/08, but entered into a forbearance agreement in June of 09, paying 894.00 monthly instead of the usual 1492. Interestingly, we never actually signed the forbearance papers that they just recently emailed to me. Our payment per this agreement should go back to orig. amt on Dec 1st(unless by some miracle we can get a mod)

    Here is the problem: They tried to do a loan mod in May, and our income was too low. We owe 70k in credit cards, so we need to show an income of about 3200 monthly to qualify for the loan mod. The thing is, I didn't want to say to them "Well, the credit cards shouldn't count towards our debt ratio, since we aren't planning to pay them off anyways" since one of the credit cards is to them.

    Besides my husbands car that we owe only 1800.00 on, I own a 06 loaded Kia Sedona that I paid cash for with a Settlement from Dow Corning after my mother died from having breast implants (another lonnnng story). The Kelly blue book on this van is around 13k in fair condition, and stupidly, after we moved to GA, I only put it in MY name so I can only use the single exemption on.

    We have not hired a lawyer.

    I have been summoned by Target national bank for a 8500 CC debt in my name only, I answered the summons within the 30 days, and requested a court date (duh, not sure if I should have done that, but just trying to buy some time)

    I make 800.00 monthly p/t as a bookkeeper, my hubby is also self employed, $800.00 monthly guaranteed, and then usually another 800-900 from odd jobs(he is trying to build his business, since he can't seem to land a job in sales-he's applied for hundreds, literally!! So, as you see we cannot afford CH 13.

    I don't want to say anything to the cu about possibly filing bk, but don't know what to do. I could fudge our P & L's a little bit to qualify for the loan mod, but dont feel too comfortable with that, either.

    OK< so it boils down to the fact that I want it all. I need to keep my home and both cars.

    Oh, one other thing, previously the cu offered to give me a loan on the van for around 10k to pay off the Visa that we have with them.

    HELP> I'm up to my a-- in alligators!!

    #2
    you might ask an attorney about adding hubby to the van title, especially if you do not plan to file for a while.

    if you do not use the georgia homestead exemption, you and your hubby would have enough in wildcard exemptions to cover the van equity anyway.

    keep the house? what's it worth? even more important, what can you afford to pay? numbers don't lie, especially when you have to make that payment on the first of the next month.

    do a budget and go see an attorney. 1st sessions are usually free.

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      #3
      It looks like you may have to bite the bullet and let the house go. For what you are paying, downsize a bit. Pay through hubby's car or pay it off would be better. They will send you the Title (hopefully) even though it is collateralize. They sent mine so you shall see.

      Bk is a change in your life in any case. Hopefully it will be better. 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

      Comment


        #4
        Off topic, but that was a really good book: Catch 22. It's about a war-time pilot named 'Orr' who fears for his life and is trying to get out of flying more missions by pretending that he's crazy. Here's the quote from the book where the term originated:

        There was only one catch and that was Catch-22, which specified that a concern for one's safety in the face of dangers that were real and immediate was the process of a rational mind. If Orr was crazy, he could be grounded. All he had to do was ask. But as soon as he did, he would no longer be crazy and would have to fly more missions.

        Orr would be crazy to fly more missions and sane if he didn't, but if he was sane he had to fly them. If he flew them he was crazy and didn't have to; but if he didn't want to he was sane and had to. Yossarian was moved very deeply by the absolute simplicity of this clause of Catch-22 and let out a respectful whistle.

        "That's some catch, that Catch-22," Yossarian observed.

        "It's the best there is," Doc Daneeka agreed.
        Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.

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          #5
          I understand your point about just letting the house go, but where am I going to go for less than 1k a month? I have three kids and 8 animals.

          One of my main questions is: If we file bk, or plan to, should we let the CU know this in hopes that they will work with after the bk? Or is it possible that the judge could make them modify our mortgage.

          Sure, things are bad now, but hopefully the hubby can get better employment soon. By the way, who is the idiot that said the recession is over? Bet it was someone that had a job, huh?

          Hub, when you paid off your auto loan and got the title, are you saying that there was cross collateralization involved? I am concerned that they will hold the title because of the 8k or so I owe them for the Visa

          Comment

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