Mortgage help--what to do?

[flower04]

we owe more on our house than it is worth (surprise, surprise) and our % we pay each month (we are current) is about 45% of our income. Our CH13 budget is so lopsided, our attorney want us to "work it out" so that our we have some wiggle room.
I'm going to call our mortgage company and ask them if can qualify for any of the relief programs that are offered. Any advice or suggestions? we plan to keep the home during the 13.
THanks

[HHM]

yeah...upside down with a mortgage payment that is almost double what it should be

Walk away.

Time too seperate emotional attachment from financial reality.

[justbroke]

I agree with HHM.

If you have a property which is more than 10% upside down (okay... maybe over 15% upside down), then just walk away. This is the perfect opportunity to be done with this.

This is a business decision. You are making a decision not to have that debt.

[flower04]

Can your attorney lower your interest rate on mortgages? I've read on other posts that for secured debts, sometims a lower rate is negotiated.

[StartingOver08]

You are buying trouble by keeping a home that takes 45% of your income every month. Unless your income is artifically low for some reason right now, do not keep the house.

Really your house payment should be no more than 36% of your base income. Unless you can figure out a way to substantially increase your income, it makes sense to walk away while you are in BK so you can truly get the fresh start you need.

[HHM]

Can your attorney lower your interest rate on mortgages? I've read on other posts that for secured debts, sometims a lower rate is negotiated.

Nope.

The only time that is even possible in a BK context is through a reaffirmation agreement, but such an agreement on a long term loan is never in the client's best interest.

[Stilltheone]

I could've written the original post.

We are like you, owe more than what the home is worth, payments are interest only and a little less than half of our income.

We've tried to modifiy our home loan but the mortgage company requires that you have "$1000/mo in surplus income". Hmm...if you have surplus income, you don't NEED the loan mod, in my opinion.

We went against the grain and chose to keep the house, for several reasons, all of them being emotional. We have kids and love our house. Plain and simple.

Good luck to you in whatever you decide!