Re: I have a 115% mortgage on a 3 Year Arm...is there hope?
08-17-2007 06:21 AM
I don't think this is a situation that requires bankruptcy and if you talk to a bankruptcy attorney understand that he is interested in making a fee so his advice is biased. Your main problem is that you can't re-finance because of lack of equity. You could possibly buy a bigger house at 70% of appraisal maybe buying subject to, refinance money out of that one, and use the money you pull out to bring to closing when you sell the first house. Or you could find an investor to sell part of your house to, use the money to pay off your second and part of the first. Then re-finance. (The investor might have to sign on the new mortgage. Typically with these deals there will be an agreement to sell in 3- 5 years and split the proceeds. You haven't given us enough facts to really come up with solutions though. If you have enough time you might be able to play a balance transfer game with your cards to free up cash for paydown. Also look at your other assets. I have seen people with two brand new trucks in foreclosure because they were making the truck payments instead of selling them and buying used ones. This is a tough problem. I recommend going to a RE investment club meeting and making an appointment with the person who runs the meeting. People will likely not help without taking a pound of flesh but better that than losing everything.