Feeling scared and alone

[6sillywalkers]

Thank you all for your wonderful words of encouragement. I can't tell you enough how much I appreciate a few kinds words of encouragement at a time like this.

To answer a few questions. We own both of our vehicles and have for years. We paid cash for one and the other we paid off a while back. So Cars are in the clear.

Our house is another deal. DH refinanced the home last year with one of those dumb loans that tack your interest on the back of your loan for 5 years and then at the end of that time then you have a huge house payment. He said it sounded like a good solution to our problems at the time. Well yeah. So right now our first mortgage payment is $1,069 and our Heloc (I include this with my mortgage budget) is $450 a month. Then we find out suprisingly this year that taxes and insurance aren't included so that is $2850 a year ($237.50 a month). Tack on our HOA fees of $230 a quarter ( $76.00 a month). For just the house a month it all equals out to be around $1832.50 a month. For us that is about two weeks worth of pay. Not to mention that in four years our interest only monthly payment will be $2300.00 a month brining our monthly total payment up to around $3100 including all the other junk.

Given our home is or was worth $400,000 a year or so ago but the housing market has taken a dump here. But all in all we owe $360,000-380,000 on the home. I know when you include Realtor fees (wouldn't be a full fee we have family who are realtor's) and closing costs it is hopeless.

Now my husbands sister and her husband work for a Rental large home company. I know they could find us a place to rent if need be. We have talked to her about rental houses and she said she knows of some for rent for $850-950 a month.

I looked into Geico insurance and got a quote online (with no ss number for a credit check. Instead of the $200 I am paying I could get coverage for $104. I am very pleased but still need to call them and get the actual numbers. We will be switching if all goes well.

I do worry about Bank of America taking $$ out of my checking account to pay my credit card that as of today is two months late. *YIKES*

Should I answer the phone to any creditors or just put the phone on slient and let the machine get it?

[HeatherB]

I'd put the phone on silent. Either that or screen your caller ID.

Once I retained an attorney, he instructed me to give out his name/number anytime anyone called. It took less than a week for the calls to stop.

[JollyGG]

So, basically your house payment is over half of your take home pay. Yikes.

I hate to say it, but you need to consider letting the house go. Expecially if you can get a rental that would work for your family for less than half that amount. There you have the $500 you are still negative every month plus some.

50% of your take home pay is way to high for a house payment.

You can rent for at least two years then get back in the housing market if your really want to.

As others have mentioned, talk to two or three bankruptcy lawyers and talk to your husband about the possibility of letting the house go.

[CoCoChanel]

6,
It seems bad right now, but even with the other bills you still have to pay minus the unsecured debt, believe me the bankruptcy filing will still make you feel better. I can not tell you how happy I am just paying car note, telephone, car insurance, rent and light bill. Believe it or not, I do not always have extra even with filing bankruptcy, but on the rare ocassion that I do, it makes me feel really good. Sometimes I have gas and lunch money left, but I still feel better than I did before. You will eventually also. You can not see it now because you are experiencing what we all felt when making the decision, however after its all said and done, the good feeling we all are talking about will ease upon you when you least expect it and then you will log in here and be able to help somebody else just like we did once someone helped us out on this forum. Hang in there.....its gonna be better.