Advice about loan modification/bankruptcy

[hughewil]

My situation

Currently I am employed full time at a company and my wife part time with the local school.

Our bills each month come out to just over what we bring home after taxes and other deductions (health care etc.). I have been working a second job and that gives us money for the bills, but once you add in food, gass, and other misc expensises (car repair, tires and such) we still fall short. All the money in savings is almost gone, and in addition to that my second job is per diem. I haven't been asked to work in may or june yet and I expect I may not be. Also with school ending my wife's part time job is going to be gone as well.

My question is about applying loan modification. If I do it now using the last 2pay periods I will have to include my paychecks from the second job that will be gone the end of this month correct? and my wifes which will be gone in another month.

Should I wait until that income is no longer available and just apply with my primary jobs income? I don't quilify for the government modification act since the 1st mortgage isnt 31% of my gross it would have to be through my lender's loss mitigation and the first thing on the form is the households gross income. That will reduce by $1400 once these two jobs are gone in a couple of months.

Also I was wondering if instead of going through this should I just file for chapter 13? I have not had my home appraised yet, but I am fairly certain that the value will be less that my first mortagage, if it isn't then chapter 13 would be pretty much useless for me as my 1st and 2nd togther are just to much for me to handle with all the other bills.

thanks for any advice sorry if I sound like I am whinning.

[hughewil]

also at this time we are not behind on any payments even though we have nly been paying minimum on credit cards. But in the next few months our savings will be empty and we won't be able to pay.

[newbie2]

My situation

Currently I am employed full time at a company and my wife part time with the local school.

Our bills each month come out to just over what we bring home after taxes and other deductions (health care etc.). I have been working a second job and that gives us money for the bills, but once you add in food, gass, and other misc expensises (car repair, tires and such) we still fall short. All the money in savings is almost gone, and in addition to that my second job is per diem. I haven't been asked to work in may or june yet and I expect I may not be. Also with school ending my wife's part time job is going to be gone as well.

My question is about applying loan modification. If I do it now using the last 2pay periods I will have to include my paychecks from the second job that will be gone the end of this month correct? and my wifes which will be gone in another month.

Should I wait until that income is no longer available and just apply with my primary jobs income? I don't quilify for the government modification act since the 1st mortgage isnt 31% of my gross it would have to be through my lender's loss mitigation and the first thing on the form is the households gross income. That will reduce by $1400 once these two jobs are gone in a couple of months.

Also I was wondering if instead of going through this should I just file for chapter 13? I have not had my home appraised yet, but I am fairly certain that the value will be less that my first mortagage, if it isn't then chapter 13 would be pretty much useless for me as my 1st and 2nd togther are just to much for me to handle with all the other bills.

thanks for any advice sorry if I sound like I am whinning.

Don't ever think you are whining. All of us here are here because of financial hardships of one kind or another.

Mortgage modifications seem to take a while to happen, have you had any contact yet with your lender about it?

Also, you may want to contact a couple of real estate agents in your area for a free market analysis. They can give you a pretty good idea of what your home is currently worth, and then you'll know whether filing Chapter 13 to strip your mortgage makes sense.

If you do decide to file for bankruptcy you may want to wait a few months to let the higher income (from your 2nd job) drop off the radar so to speak and reduce your disposable income available to the trustee.

Good luck with the modification (if you try for it).

[hughewil]

I havent applied for a modification yet becuase of the 2nd job income. I was planning to file for it after two pay periods with out the 2nd income (end of may) so that the 2nd job would not be listed.