I would really appreciate some advice.
With my fiance laid off and my bonuses taken away, we are now faced with a financial nightmare. We've used up our savings and have resorted to credit cards. The home we live in is in my fiance's name and remains current - no delinquencies.
I have a rental property that is paid up to date - never a delinquency - with a 1st $240k (6.65%) and a 2nd $60k (12.5%). Both mortgages total $2300/mth and the renters pay $1850/mth. I just got notice that the renters will be moving out in 60 days, so I need to either sell it or try renting it out again. I contacted my real estate agent and she informed me she thinks we could get about $280k for the house.
I have about $80k in credit card debt (no delinquencies) - 3 citicards and a Discover card.
We have reached a point were I can't pay everything, so I have to make a decision what should be paid.
Should I pay the mortgages and NOT pay the 3 Citibank credit cards? Or should I pay the credit cards and NOT pay the mortgages?
I've heard pros and cons for both sides:
- don't pay the mortgages and hope the bank agrees to a Short Sale. This will reflect better on your credit report. One large negative hit is better than 3 negative hits.
- don't pay the credit cards and get to a point were you can negotiate a "deal" with Citibank. Hope for "paid as agreed - not full balance"
I contacted a bankruptcy lawyer and they told me I make too much money to file for a Chp 7. My only choice would be a 13.
As of today my credit scores are:
- TransUnion 684
- Experian 686
- Equifax 674
We have a 10 month old baby, with another baby on the way. I have never been in debt or delinquent before and I am stressed beyond belief.
I have no clue what to do.
Any advice would be greatly appreciated!
