Go Back   The Finance Forums > Finance forums > Debt



Debt Discussions about debt and how to deal with debt.

Reply
 
Thread Tools
  #1  
Old 01-14-2012, 01:53 PM
noagenda noagenda is offline
Junior Member
 
Join Date: Jan 2012
Posts: 1
Default 2nd and 3rd Mortgages killing me! Help

Hi, my situation is a nut shell. We have gotten ourselves into a mess. We bought our home 8 years ago, we currently owe $298k on a $330k loan. We also took out a 2nd (owe $47K) and 3rd (owe $63k) back when you could get a loan even if you didn't have a pulse. Problem is now that I have taken a job making a lower salary, but more security. I have exhausted all my rainy day money and have borrowed against my 401k just to maintain current payments. While I can still boast that I am current on all payments, that will end soon as there is just no more I can borrow against to help make up the void every month. We also entered into a debt mgmt program last summer to help with the CC debt. I am at wits end....I can't refinance my home, don't qualify for any of the gov't programs as they say I make to much money. My house has taken a hit and currently only worth 300k...so my 2nd and 3rd mortgage is basically unsecured. I have tried (still trying) to work with loan modification companies to help. Also explored the bankruptcy route but don't know if it will work for me.
I feel trapped, it has been engrained into me to always make my payments on time, which I am but probably to my demise. I have more money going out then coming in. Since the CC are all gone and no more savings and retirement to pull from...I have no other recourse except to start missing payments. I have spent hours on the phone with different companies trying to find the solution to help me out.
1) Should I stop payying on the CC first?
2) Stop paying on the 2nd and 3rd mortgage, that are really not secured against my home due to the value drop?
3) walk away from my house?

Any guidence, recommendations, assistance would be appriciated.

thanks!
Reply With Quote

Old Sponsors
  #2  
Old 01-15-2012, 10:59 AM
findersfee's Avatar
findersfee findersfee is offline
Junior Member
 
Join Date: Jan 2012
Location: england, uk
Posts: 4
Default Re: 2nd and 3rd Mortgages killing me! Help

hi,
i know it wont help now, but dont let greed take over, make sure you own one first before going getting another one, greed gets them all, thats why im only after 1. best of luck though,
Reply With Quote

  #3  
Old 01-21-2012, 01:19 PM
MDC86 MDC86 is offline
Junior Member
 
Join Date: Aug 2011
Posts: 11
Default Re: 2nd and 3rd Mortgages killing me! Help

Why did you take a job making less money when things were tight? Do you have a spouse? Do they work? Can you get your old job back with a higher salary or get a similiar one with a similiar salary to your old one? You were paying everything at one time and it doesn't seem like you have raise your monthly payments. Were you having this trouble when you had the other job?
Reply With Quote

  #4  
Old 01-22-2012, 11:48 AM
josho josho is offline
Junior Member
 
Join Date: Jan 2012
Posts: 3
Default Re: 2nd and 3rd Mortgages killing me! Help

Quote:
Originally Posted by noagenda View Post
Hi, my situation is a nut shell. We have gotten ourselves into a mess. We bought our home 8 years ago, we currently owe $298k on a $330k loan. We also took out a 2nd (owe $47K) and 3rd (owe $63k) back when you could get a loan even if you didn't have a pulse. Problem is now that I have taken a job making a lower salary, but more security. I have exhausted all my rainy day money and have borrowed against my 401k just to maintain current payments. While I can still boast that I am current on all payments, that will end soon as there is just no more I can borrow against to help make up the void every month. We also entered into a debt mgmt program last summer to help with the CC debt. I am at wits end....I can't refinance my home, don't qualify for any of the gov't programs as they say I make to much money. My house has taken a hit and currently only worth 300k...so my 2nd and 3rd mortgage is basically unsecured. I have tried (still trying) to work with loan modification companies to help. Also explored the bankruptcy route but don't know if it will work for me.
I feel trapped, it has been engrained into me to always make my payments on time, which I am but probably to my demise. I have more money going out then coming in. Since the CC are all gone and no more savings and retirement to pull from...I have no other recourse except to start missing payments. I have spent hours on the phone with different companies trying to find the solution to help me out.
1) Should I stop payying on the CC first?
2) Stop paying on the 2nd and 3rd mortgage, that are really not secured against my home due to the value drop?
3) walk away from my house?

Any guidence, recommendations, assistance would be appriciated.

thanks!
Your solutions are going to lead you into financial disaster. First thing to do is pull whatever money you put in to the loan modification companies and debt consolidators an use that money to keep your cc bills afloat until you can start unloading your debt. It sounds like whatever job you had before you took a DRASTIC change in income or you misrepresented your income in the first place to get these mortgages and credit cards. Either way you need to unload....sell off everything worth money and cancel things you don't need that's really the only way your are going to get out of your mess. Either that or attempt to file for bankruptcy but even then you might be in the same position you were in if you had sold off most of the unneeded things. NEVER NEVER NEVER default on ANYTHING.
Reply With Quote

  #5  
Old 01-22-2012, 04:56 PM
ASPIRE4GRACE ASPIRE4GRACE is offline
Junior Member
 
Join Date: Jan 2012
Posts: 4
Default Re: 2nd and 3rd Mortgages killing me! Help

Quote:
Originally Posted by noagenda View Post
Hi, my situation is a nut shell. We have gotten ourselves into a mess. We bought our home 8 years ago, we currently owe $298k on a $330k loan. We also took out a 2nd (owe $47K) and 3rd (owe $63k) back when you could get a loan even if you didn't have a pulse. Problem is now that I have taken a job making a lower salary, but more security. I have exhausted all my rainy day money and have borrowed against my 401k just to maintain current payments. While I can still boast that I am current on all payments, that will end soon as there is just no more I can borrow against to help make up the void every month. We also entered into a debt mgmt program last summer to help with the CC debt. I am at wits end....I can't refinance my home, don't qualify for any of the gov't programs as they say I make to much money. My house has taken a hit and currently only worth 300k...so my 2nd and 3rd mortgage is basically unsecured. I have tried (still trying) to work with loan modification companies to help. Also explored the bankruptcy route but don't know if it will work for me.
I feel trapped, it has been engrained into me to always make my payments on time, which I am but probably to my demise. I have more money going out then coming in. Since the CC are all gone and no more savings and retirement to pull from...I have no other recourse except to start missing payments. I have spent hours on the phone with different companies trying to find the solution to help me out.
1) Should I stop payying on the CC first?
2) Stop paying on the 2nd and 3rd mortgage, that are really not secured against my home due to the value drop?
3) walk away from my house?

Any guidence, recommendations, assistance would be appriciated.

thanks!
Noagenda, I tried to send you a PM, but since i'm new, it wouldn't let me, until I have 15 posts. I don't think I can post links to other websites but I have som info that I think would be VERY beneficial to you. Can you send mea private message and maybe I can return it with the info?
Reply With Quote

  #6  
Old 01-23-2012, 09:40 AM
littleroc littleroc is offline
Senior Member
 
Join Date: Mar 2011
Location: Minnesota
Posts: 334
Default Re: 2nd and 3rd Mortgages killing me! Help

So do you have some type of a 80/10/10 mortgage or what is it? Are they all fixed rates? What is your exact income and please lay out your bills, it will help to give you better advice. I'll be waiting to hear.
Reply With Quote

Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 07:11 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.