Pay CC Bills while going through Home Modification Process?

[hankrobbins]

Hi-

I am struggling to make my CC bills.

I recently applied for the Home Modification program (through CITIMORTGAGE). They lowered my payments by 1/2 as I have been "pre-qualified".

My question is: Should I start paying my CC bills again, at least until my Modification goes through? I am already about 5 months behind on the CC bills. I wonder if they will approve the Home Modification when I am so late for the CC bills, and whether .



I will not be able to pay the CC bills if the modification does not go through, and I have elected to not pay them in fear that the modification will not go through anyway.

Does anybody know anything about the Home Modification program and whether I should start paying on these CC bills-whether this affects the elligibility for the program or not?

Thanks,

Hank

[DeadManCrawling]

I would absolutely NOT begin payments on CC or any unsecured debts again.

You should mentally separate the CC debt from the issue of a mortgage modification. While I do not know your exact circumstances, I can make a general prediction: No matter how low your mortgage MIGHT be in the future, your chances of paying off any substantial CC debt are zero.

The reason I say this is: Your CC debts long ago jumped to the highest interest possible. You will never be able to reverse that. Any payments made now are likely wasted.

I would wait and watch the mod progress. If it actually succeeds, you will then have saved money on both lower mortgage payments and by not paying the CC companies. By then you will have some money saved and be able to decide what to do. If you are in too good of a position for CH 7 you can consider 13, or even settling with the CC companies, though that rarely works or makes sense.

The important aspect would be making sure the money is safe, once saved. Watch for lawsuits and threats to garnish or seize and so on.

But, having not paid for many months, there is no way to put that monster back in the bottle. I would call it wasting money to send them any.

Others may view it differently, so I am interested to see other opinions, too.

Best,

-dmc