2 on the deed, 1 on the loan .may file BK

Anonymous · ‎06-20-2009

Hi, its my first time posting a message.

I'm reading everything on what and how to file BK. I'm considering it. However I don't want to hurt

my husbands credit. We have a 2nd home in Fl. We are both on the deed. Only my husband is on

the primary mortgage. Balance of primary is 238k. Additionally we have a Home equity 60K. I'm the borrower. It doesn't show up on his credit report. He hasn't worked in over a year. Although current on CC debt and 2 mortgages and other unsecured lines of credit, we have depleted savings. I net 3200 monthly and our output is $7000 monthly. I'm really scared now. We can't sell the FL home. I am willing to sell primary home and move to an apartment while our credit is still decent. 723 and 801.

What happens to the Home Equity I'm the borrower on, if I file for BK and will it impact my husbands credit?

Does anyone know?

Message Edited by Tiger1 on 06-20-2009 07:00 PM

Message Edited by Tiger1 on 06-20-2009 07:02 PM

Anonymous · ‎06-30-2009

I take it you don't live in Florida, which has some interesting rules about housing and bk.

If you have a second home with any equity at all and you file bk, that home could be taken by the court. the non-filing spouse would receceive a portion of the proceeds after the sale, it depends on your district.

Get thee to a bk attorney where you live and start asking questions. Most offer free consultations.

REMEMBER, THIS IS NOT LEGAL ADVICE.

Anonymous · ‎07-04-2009

Tks. My husband has been unemployed over a year, no unemployment benefits. We are current on all mortgages, credit cards still meeting mins., His score is 801 and I'm 724 due to high debt to income.

I just don't know what to do with the house in FL. We have used all savings, had to do cash advances on

credit cards to maintain that home. The mo. mort pay on primary mort. is $1847 - husband only on that mortgage.

There is a Home Equity $60,000 the mo payment is $614. which I pay.

We moved to another state, I was able to purchase on my credit and income alone - but totat mo mortgage pay is $2098.00 and $124 HOA mo plus utilities. I net $3200 mo.

It was all manageable when we had 2 incomes netting $8000 mo I'm overwhelmed. We could probably sell the house in FL if we could pay off the 60k Home Equity. Do you think the bank would renegotiate and change the HELOC to an unsecured loan. I'm not trying to get out of paying our debt?

Anonymous · ‎07-05-2009

I've never yet met a bank that would WILLINGLY give up secured status for unsecured. That usually takes the intervention of the courts.

Anonymous · ‎07-06-2009

Wishful thinking. I called the bank in FL about getting help with the HomeEquity $60k Fl home. They sent

me a request form and a budget worksheet. Hubby has to call on the Primary mortgage because I'm not on it.

He feels the banks are not going to assist and they will just make matters worse and he'll lose his 801 Fico score. Right now I don't care about my 724 FICO score, I'm just trying to survive.

Anonymous · ‎07-08-2009

Okay, I can't give advice on the fico scores...ours tanked when folks stole from us but I digress...my arena was bk law, so I'll tell you what I "might" have said before I retired.

If you're that upside down in income to expenses....get out from under the FL house. Short sell it, allow it to go to foreclosure, surrender it in a bk, sign over the deed to the bank...whatever you have to do. If you're income is less than half your expenses, you don't need a second "vacation" home. You can't afford to go vacation there anyway.

And get your husband on board. Unless he's terminally ill, he can find SOME kind of work after a year. It may not require him to wear nice clothes or offer benefits, but he can find money of some sort. If you two are older, see about when he can file for Social Security. That's at least income that generally can't be garnished by a creditor.

Then...this is the part that will tank your scores if nothing else...call the credit card companies and get put on payment plans. Ask for reduced or zero interest and a set payment for up to five years. They may (probably will) close the accounts, but you can plan on what your payments will be. If you can't afford that, ignore them and they will close them anyway and come after you.

REMEMBER, THIS IS NOT LEGAL ADVICE.

Anonymous · ‎07-11-2009

I am so ready psychologically to just let go. My husband is still in denial. Our finances are now what I call,

HIS and HERS. He just doesn't get it. I have 4 credit cards totaling $14,500 and 2 credit lines totaling $6300. My rates are low. He has 2 credit cards total $29,000 . The unemployment part is closer to two years. He briefly worked at two jobs he was clearly over qualified for at 20% of what he used to earn. He couldn't adapt, so he quit each time.

I am linked to him and the house in FL because of the Home Equity 60k which I was the loan applicant and the payment is $600 monthly. He has used the savings to upkeep the home in FL. It used to be our primary home, we have sinced moved and I purchased another home of which I was able to secure the mortgage based on my score and financials only. It was all manageable when he used to work and earned in excess of 100K.

We are in our mid 50s. He has also done a $10k cash advance on a credit card which is paying the mortgage and maintenance on FL. We are heading to FL next week in hopes of renting the home.

If it were up to me, I would put our current home up for sale. Give the bank back the keys for the house in FL. Live in a modest apartment $600 mo and just concentrate on paying bills and try to save an emergency fund.

At the rate we're going and based on current financials if we don't make these drastic changes we're going to lose anyway and he can kiss is precious 801 score good buy.