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Need Help ~ Keep House, but???

Senior Contributor

Need Help ~ Keep House, but???

I've been working with dh's stepsister.  He dh took a 35% pay CUT.  The economy is so bad that he may take another cut.  She has 4 debts in her name that she cannot meet the payments on.

 

Bank of America $1600

Beneficial $5000

Paypal $700

Arhaus Furniture $500

Lowes ~ $1400

CC ~ $1400

Dell ~ $600

JC Penney ~ $1000

 

 

Lowes ~ Already @ 0% / 5 year payment plan.In order for them to make their mortgage payment and two auto payments, they cannot pay the top 4 debts.  She's beside herself, but they have a ton of equity in their home as they've lived in it for about 15 years.  Unfortunately, their area is LOADED with like homes (development) and they live in a rural area.  Not Good.

 

She wants to continue to pay Lowes, JCPenney and Dell as they work into the budget.  She has honestly CUT everything she can from the budget.  We've gone over and over and I can't see anything else.  They do have cable, but their 17 year old son is paying that bill.  They have re-homed their family dog, they drink mainly water, they don't go out unless it's a freebie (like taking a walk).  They're totally stressed out and she's hysterical.  They were denied a loan mod.   She was on a plan w/BOA for 5 years @ $165/monthly...they now refuse to lower the payment. 

 

They have sold everything worth anything.  He WAS out of work for two years and landed this job 18 months ago and received the paycut 12 months ago.  Horror's all around.

 

I think she's going to have to file bk...I don't know what else to tell her. 

 

 

 

 

Message 1 of 19
18 REPLIES
Senior Contributor

Re: Need Help ~ Keep House, but???

Forgot to add:  JCP has agreed to a 6 month plan @ $14.00 to be reevaluated after the 6month mark.

Message 2 of 19
Valued Contributor

Re: Need Help ~ Keep House, but???

was she denied the home loan modification under OBAMA's plan? Make sure she visits makinghomeaffordable.gov to see if there is anything else she can do.

 

Good Luck!


I'm not a kid anymore, I've done a lot of growing up! Smiley Happy
Starting Scores Sept '15- EQ-555, TU-542-EX-536
Current Scores as of June '16 - EQ-592, TU-635. EX-629
Gardening since June2016
Message 3 of 19
Valued Contributor

Re: Need Help ~ Keep House, but???

Any room to manuever if car #2 is eliminated? Also, if the son already pays the cable bill now, maybe he can instead contribute those bucks towards the family debt situation. I assume he lives there, eats there, and rides in the cars. Time to man up. He can do without the MTV for awhile... Just my opinion.
Message 4 of 19
Senior Contributor

Re: Need Help ~ Keep House, but???

I believe their son pays for his own school lunches, supplies, cable, auto gas.  No, car #2 cannot be eliminated, she needs to get to work also and there is zero public transportation in the *boonies*.  She's never had a career, so the only job she could land is one taking care of a gentleman with alzheimers...it's a tough situation.

 

Yes, they were denied under Obama's plan....

 

They still owe $$$ for their eldest sons education, which is killing the budget right now in addition to medication.  I've asked them to contact the drugs mfg. co to see if there is anything they can help with.  Two medications are not available in generic.

 

I did sign her up for online surveys, so she's earned almost $15 this week....heck that will purchase some gas.  There's just no way she can pay obligations under her own name right now.

 

Do you think it's best to let these go to collection and try to work a pay-off?  Her church may be willing to help, but it's embarassing.  Bk7 is another option I suppose. 

 

 

Message 5 of 19
Regular Contributor

Re: Need Help ~ Keep House, but???

They shold consider continuing to work on the loan modification even though they were denied for HAMP.  They have inhouse programs as well outside of the gov't programs.  It is a painful process that could take months. Possible they could get an inhouse modification or some sort of special forbearance.   Tell them to keep fighting and escalating. Also warn them about the inhouse special forbearances.  Some are trials that might lead to modification and some are total dead ends that lead to greater debt with balloon payments at the end.  Check out the loansafe message boards.  Wealth of info over there more specific to the modification process, forbearances, forclosures, etc.   For the CC's I would call them all and try workout plans.  Help them write some hardship letters and explain the specifics of the situation. 

*Bought 1st Home on 7/11/07 thanks to myFICO Forums*

4/2013 - FICO: 685
Payment History: Great
Amt of Debt: Not Good
Length: Good
Amt of New Credit: Good

Goal for 2013: Pay down debt! Cross fingers housing market turns around so I can move further south!



Message 6 of 19
Valued Contributor

Re: Need Help ~ Keep House, but???

Jeez, fishbjc...that does sound tough. 

 

+1 to homerunstacy's post above.  I don't see many alternatives here.

 

I very rarely say this, but maybe they should just stop paying right now, let it all go to collections and then try to wrokout a repayment plan.  In the meantime, save what little income is coming in, get a little breathing room, and in a couple of months or so start making the arranged payments.

 

That's the best I can come up with, fishbjc...wish I could be more help.

 

 

Edit:  Wait a minute...you already came up with that!  (I'm agreeing, though!) Smiley Happy

 

The only other thing I can think of is maybe if the old gent she's caring for has a car sitting around unused, she could use that one?  I mean, with permission, of course.  I know of a couple of instances where the caregiver was allowed use of the car, to varying degrees.  Might be worth a shot if dumping one car payment could help.

 

 

Message 7 of 19
Senior Contributor

Re: Need Help ~ Keep House, but???

The gent doesn't own an auto, but he does own a motorcycle with a sidecar....HUH?????  Kind of crazy!!!!!

 

 

Message 8 of 19
New Contributor

Re: Need Help ~ Keep House, but???

Re: Need Help ~ Keep House, but???[ New ]

I believe their son pays for his own school lunches, supplies, cable, auto gas.  No, car #2 cannot be eliminated, she needs to get to work also and there is zero public transportation in the *boonies*.  She's never had a career, so the only job she could land is one taking care of a gentleman with alzheimers...it's a tough situation.

 

Yes, they were denied under Obama's plan....

 

They still owe $$$ for their eldest sons education, which is killing the budget right now in addition to medication.  I've asked them to contact the drugs mfg. co to see if there is anything they can help with.  Two medications are not available in generic.

 

I did sign her up for online surveys, so she's earned almost $15 this week....heck that will purchase some gas.  There's just no way she can pay obligations under her own name right now.

 

Do you think it's best to let these go to collection and try to work a pay-off?  Her church may be willing to help, but it's embarassing.  Bk7 is another option I suppose.

__________________________________________________________________________________________________________________________________

 

Since there was no mention of the eldest son's contribution to the family, is the eldest son able to help out in any way? Does he have any income at all?...IMO, it looks like the little bro is doing his fair share of helping already.

 

Message 9 of 19
Valued Contributor

Re: Need Help ~ Keep House, but???


fishbjc wrote:

 

They still owe $$$ for their eldest sons education, which is killing the budget right now in addition to medication.  I've asked them to contact the drugs mfg. co to see if there is anything they can help with.  Two medications are not available in generic.

 

 


What do they owe for their eldest son's education? Are they paying school loans? Not sure I understand...

 

The drug manufacturers can help...if they meet income guidelines. Also, have them call their medical provider and see if they can possibly get samples. If these drugs are not generic, there may be samples available to the provider.

 

Are they willing to get part-time jobs? Lots of people work more than one job. Not something that you want to do forever, but it can sure get you through a pinch.

Message 10 of 19