Long-term unemployed, single, trying to survive on @$%@#$% unemployment benefits in Florida. Don't qualify for food stamps, can't afford health care...
My position was eliminated back in March 2009; have only managed a 3-month contract since then. Have been going round-and-round-and-round with lender since late 2008 looking for loan mod. First, I'm told that I qualify for this program, then after "going thru the process", I'm told that I don't qualify for some reason or another, but I should qualify for that program, then after going thru that process, I'm told... well, y'all know the drill.
Florida unemployment $$ doesn't cover monthly mortgage payments (1st, 2nd, HOA, insurance, (property taxes included in 1st lien)), so I stopped making both loan payments; I have managed to get a total of 9 months of deferred payments on 1st lien.
Adding missed payments plus deferred payments plus fees makes me about 55% underwater on a townhome worth around $110K. I am 50 yrs young and my 401K now barely equals one year's salary at my last job.
Other than the house, I owe about $4.5K in cc debt which I am current on. I also owe just under $6K on a 2007 car that is seems to be worth around $16K if sold outright, according to KBB. Car loan is also current, no late payments in history.
All else is paid for; home furnishings were purchased and paid for in the 1990s or well-worn antiques from my late maternal grandparents. My 5-yr-old dog is purebred, but was spayed while a puppy. I am very hard-of-hearing; she is "my ears" at night when "my ears" (custom-fit hearing aids, the source of the above-mentioned cc debt) are on the nightstand.
Due to length of unemployment, I have sold off jewelry (wedding/anniversary rings) to a gold dealer; wedding china/crystal (what I didn't have to give to the psycho ex during the divorce), some furniture, decorative stuff, etc. through garage sales to pay for necessities before landing the contract job.
Prior to the job loss, my FICO was > 800. I'm in my current situation due to the current job market/recession.
I've proactively talked to a foreclosure attorney, who advised me not to make ANY more mortgage payments until I've secured a full-time job. Then go after an acceptable loan mod on the first before lien-stripping the 2nd in bankruptcy. We talked about this months ago when I still thought I wanted to stay in my home.
I'd still like to stay (have put in many DIY hours), but unless lender (both loans are now thru Wells) gives me a hefty principal reduction (highly unlikely), walking makes the best financial decision.
So, my questions:
1) Can the cc debt be negotiated to 0% or a very low interest rate for the life of the loan? It's not the original cc that I used to pay for my hearing aids; I'd been able to switch from one 0% offer to another for the 1st 2 years while my credit was still good.
2) I love my car and want to keep it. I didn't realize how good of a deal I negotiated at the time until I recently looked up the KBB value and discovered the value. Don't recall the trade-in value, but it was a couple of grand more than I owe. I have less than 2 years of payments left. If I end up going BK, will I have to give up my car?
3) If I walk away from my home after securing a new job (which may/may not qualify me for HAMP limits (mortgage-related expenses came in at around 33% of old salary gross; I am seeing rampant salary deflation occurring in this area, but not all companies are doing that), I'm guessing that because Florida is a recourse state, I will likely have to BK to avoid deficiency judgement(s). Not too keen on shortsale due to the dog and having lots of computer software/hardware (I'm in IT)... PLUS, homes seem to sit forever on market, shortsale or otherwise.
4) Will I have to give up anything besides the house? The BK process will likely happen after I'm finally employed, so I will be able to stash away what $$$ would have been going to rent/mortgage (I will keep paying HOA). Will any of that $$ have to go to the BK trustee, beyond, say, my lawyer's fees?
TIA.
My position was eliminated back in March 2009; have only managed a 3-month contract since then. Have been going round-and-round-and-round with lender since late 2008 looking for loan mod. First, I'm told that I qualify for this program, then after "going thru the process", I'm told that I don't qualify for some reason or another, but I should qualify for that program, then after going thru that process, I'm told... well, y'all know the drill.
Florida unemployment $$ doesn't cover monthly mortgage payments (1st, 2nd, HOA, insurance, (property taxes included in 1st lien)), so I stopped making both loan payments; I have managed to get a total of 9 months of deferred payments on 1st lien.
Adding missed payments plus deferred payments plus fees makes me about 55% underwater on a townhome worth around $110K. I am 50 yrs young and my 401K now barely equals one year's salary at my last job.
Other than the house, I owe about $4.5K in cc debt which I am current on. I also owe just under $6K on a 2007 car that is seems to be worth around $16K if sold outright, according to KBB. Car loan is also current, no late payments in history.
All else is paid for; home furnishings were purchased and paid for in the 1990s or well-worn antiques from my late maternal grandparents. My 5-yr-old dog is purebred, but was spayed while a puppy. I am very hard-of-hearing; she is "my ears" at night when "my ears" (custom-fit hearing aids, the source of the above-mentioned cc debt) are on the nightstand.
Due to length of unemployment, I have sold off jewelry (wedding/anniversary rings) to a gold dealer; wedding china/crystal (what I didn't have to give to the psycho ex during the divorce), some furniture, decorative stuff, etc. through garage sales to pay for necessities before landing the contract job.
Prior to the job loss, my FICO was > 800. I'm in my current situation due to the current job market/recession.
I've proactively talked to a foreclosure attorney, who advised me not to make ANY more mortgage payments until I've secured a full-time job. Then go after an acceptable loan mod on the first before lien-stripping the 2nd in bankruptcy. We talked about this months ago when I still thought I wanted to stay in my home.
I'd still like to stay (have put in many DIY hours), but unless lender (both loans are now thru Wells) gives me a hefty principal reduction (highly unlikely), walking makes the best financial decision.
So, my questions:
1) Can the cc debt be negotiated to 0% or a very low interest rate for the life of the loan? It's not the original cc that I used to pay for my hearing aids; I'd been able to switch from one 0% offer to another for the 1st 2 years while my credit was still good.
2) I love my car and want to keep it. I didn't realize how good of a deal I negotiated at the time until I recently looked up the KBB value and discovered the value. Don't recall the trade-in value, but it was a couple of grand more than I owe. I have less than 2 years of payments left. If I end up going BK, will I have to give up my car?
3) If I walk away from my home after securing a new job (which may/may not qualify me for HAMP limits (mortgage-related expenses came in at around 33% of old salary gross; I am seeing rampant salary deflation occurring in this area, but not all companies are doing that), I'm guessing that because Florida is a recourse state, I will likely have to BK to avoid deficiency judgement(s). Not too keen on shortsale due to the dog and having lots of computer software/hardware (I'm in IT)... PLUS, homes seem to sit forever on market, shortsale or otherwise.
4) Will I have to give up anything besides the house? The BK process will likely happen after I'm finally employed, so I will be able to stash away what $$$ would have been going to rent/mortgage (I will keep paying HOA). Will any of that $$ have to go to the BK trustee, beyond, say, my lawyer's fees?
TIA.
341 on 10/20
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