Wow...I am really screwed

[HOMEBODY]

After reading all these posts and getting all this information as to whether to file Chapter 7 or 13...looks like I will not be doing very well.

My primary residence is $745,000 on 1st loan and $80,000 on the 2nd..I am pretty sure I can get the second to go away as house is worth about $700,000.

For my other rental (which I bought as a primary residence) the 1st loan is $180,000..but the 2nd is $248,000.00. House is probably worth $250,000 on a quick sale. Will they allow for the selling cost?

On my other rental, I owe $166,000.00.. and a 2nd for 20,000.00. Its in AZ so it might be worth about $166,000 as well. I bought as a 2nd house so I guess it would count as a residence.

I have $54,000 in cc...

If I do a 13, will I have to pay the credit cards which are unsecured debts.

I could probably do a Chapter 7 if I can get an appraisal for the 2nd for $180,000..the house was left in shambles by my last tenant and I fixed it up a bit..but not the same as before. I could probably get an appraisal for $200,000.00.

How do you think I should proceed?

[HOMEBODY]

OK.. I went on Zillow and my primary residence is worth $545,000 (I owe over $800,000)

The 2nd property which was my previous residence and now a rental is worth $460,000.00 (wow...that was really much higher than what I thought) and I owe $180,000 on first and $248,500 on 2nd.

The 3rd property is worth $137,000 and I owe $166,000 on 1st and $20,000 on 2nd..I bought that as a 2nd residence and now a rental.

I am really stressing over this..cant sleep and this is all I think about.

What would the best plan be for me?

[HHM]

Start reading the sticky's and threads about chapter 13's so you can cover the basics without us retyping all that information.

A chapter 13 payment is simply income minus expenses. It is not a requirement that you pay your unsecured creditors in full in the chapter 13, you essentially pay them what you can afford to pay them. As to your real estate issues.

First, zillow values are not reliable, but if even zillow says you are low, then the actual numbers are probably lower. THIS week, you need to get a Realtor to give you a current market analysis of each residence, and you need to tell the Realtor, I need a price that will sell these homes in 30 days.

Second, if you are that upside down on your primary residence, you need to seriously consider simply walking away, that is too much negative equity even if you got rid of the second mortgage. Time to buck up and realize it makes NO FINANCIAL SENSE to keep that property as you will NEVER recover the value (10.2% unemployment, and over 1.4MM without jobs that have mortgages, we have years of foreclosures to get through and with people not working, who is going to buy homes, prices are not going anywhere).

If I were advising you, I would say, DUMP ALL THE HOUSES AND WALK AWAY and try for a chapter 7.

[HOMEBODY]

I cant walk away from my main house. The bank modified the loan to 1.19% and my payment is $2071.00. Zillow did not estimate the selling price correct because some of the houses around my block have sold for $700,000.00

My other houses would give me a positive cash flow if I could get rid of the 2nd lines of credit. Now, if I get a realtor to give me an appraisal to say the house is worth $180,000 if I sold in 30 days..then it would pass through and I can get rid of the 2nd?

Just thinking ahead here. That is the last question I have. You have given me such valuable information for me to assess my situation and see what I should do.

Today I will pay the property taxes on the properties with my credit card and wait until February to file. I need to do this as soon as possible. If the attorney says I could do this, I will file right away and get some peace of mind and sleep.

Thank you so much.

[OHBOY]

the

Today I will pay the property taxes on the properties with my credit card and wait until February to file. I need to do this as soon as possible. If the attorney says I could do this, I will file right away and get some peace of mind and sleep.

Thank you so much.

As it is my understanding that it is a 'No, No' to pay taxes with cc if one intend to file, I don't think I would do that. Seems that the credit cards would just slightly frown on that...
Now I don't know if that just pertains to IRS type taxes (?) but I don't see why it would....

[biotechsolution]

You can't pay non-dischargeable debts with a credit card........well I guess you could but you'll end up paying it back after your discharge.

You can also only strip your liens in a Chapter 13 plan. So you'll have to figure all that positive cash flow into your paymant plan for the next 5 years.

[HHM]

Before you "Do" anything, schedule some consults with higher end BK lawyers. Your case is too complex for a the run of the "mill" BK attorneys. Consults are generally free and will help you termendously in clarifying your situation.

[Overmylimit]

HOMEBODY,

Which bank modified your loan to 1.19? and lowered your payment? is that for the life of the loan?

Thanks

[anykey]

With this being more complicated- I think I would get a consult with a pro.- and do not wait.

[HOMEBODY]

Overmylimit. My loan is with Chase and its for the life of the loan. This was done last year and I didnt ask for it. I guess they say that I had a risky one and offered that to me so that I wouldnt default.