Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My daughter lives in CA and is so upside down in her mortgage. She and her hubby wanted a fixed rate moartgage but was talked into a interest only loan. It comes due in 20010. With three kids and credit card dept what can thay do? They have a homestead exception if they stop paying there credit card dept can they save their house. They also have two cars free and clear.
My daughter lives in CA and is so upside down in her mortgage. She and her hubby wanted a fixed rate moartgage but wastalked into a interest only loan. It comes due in 20010. With three kids and credit card dept what can thay do? They have a homestead exception if they stop paying there credit card dept can they save their house. They also have two cars free and clear.
I mean no disrespect here when I say that your daughter and her husband probably wanted a bigger/better home than they could have otherwise afforded, if they had secured a fixed rate loan, back when. It's the emotion of the bigger/better business that got so many into trouble.
It's the same kind of emotion and immature thinking that probably caused them to charge more on their credit cards than they could afford to repay.
I think, but am not certain, that you might be reffering to the Wildcard exemption within the bankruptcy law. Your daughter needs to find a bankruptcy attorney.
They need to call their lender asap and apply for a modification. Can still afford the current payments? Second alternative is if they want to sell is do a short sale but they would have to be behind in payments for the bank to approve it.
I mean no disrespect here when I say that your daughter and her husband probably wanted a bigger/better home than they could have otherwise afforded, if they had secured a fixed rate loan, back when. It's the emotion of the bigger/better business that got so many into trouble.
It's the same kind of emotion and immature thinking that probably caused them to charge more on their credit cards than they could afford to repay.
I think, but am not certain, that you might be reffering to the Wildcard exemption within the bankruptcy law. Your daughter needs to find a bankruptcy attorney.
They bought an 1400sq ft home that is not bigger better home in my opinion. Credit card dept I agree. I also blame the mortgage broker who told them the interest only was the way to go
They need to call their lender asap and apply for a modification. Can still afford the current payments? Second alternative is if they want to sell is do a short sale but they would have to be behind in payments for the bank to approve it.
Naima
Yes they can afford the current payments with out all the cc dept. But I thought haveing a homestead excerption would safe their home.
A homestead exemption protects them from a forced sale to pay creditors. It doesn't protect them for foreclosure and the bank taking the house, nor does it protect them from having to pay the credit card debt back. It just means that the credit card companies can't have the house be sold to pay them back.
1) They first need to call their lender and see about getting the loan modified.
2) Then they need to call their credit card companies and cancel their credit cards and make arrangements to pay the debt. They need to negotiate a low interest/or flat payment type of deal.
They could default on their credit, but honestly that is a bad plan. Not only to the collection agencies hound you 'till you want to go insane, they don't want to ruin their credit if they don't have to.
So...help them help themselves. Cut up the cards and call the credit card companies. Get the interest reduced on the cards and work out a plan. Call the lender and get the loan modified.
A homestead exemption protects them from a forced sale to pay creditors. It doesn't protect them for foreclosure and the bank taking the house, nor does it protect them from having to pay the credit card debt back. It just means that the credit card companies can't have the house be sold to pay them back.
1) They first need to call their lender and see about getting the loan modified.
2) Then they need to call their credit card companies and cancel their credit cards and make arrangements to pay the debt. They need to negotiate a low interest/or flat payment type of deal.
They could default on their credit, but honestly that is a bad plan. Not only to the collection agencies hound you 'till you want to go insane, they don't want to ruin their credit if they don't have to.
I will try and do it but she asked me what to do and then doesn't do it. This is serious though so maybe . I told her when we move a town away that was just building up and they had homes for the mid $100,00 I told her about them and she said she didn't want to take the boys out of schooll and that was 7 years ago plus she didn't want to leave her friends.The towm she lived in homes started at the$400,000 . the own we moved to was only 15 miles away.Our home was only $255,000 and we sold it for $ $450,000 In 2004
So...help them help themselves. Cut up the cards and call the credit card companies. Get the interest reduced on the cards and work out a plan. Call the lender and get the loan modified.
I will try and do it but she asked me what to do and then doesn't do it. This is serious though so maybe . I told her when we move a town away that was just building up and they had homes for the mid $100,00 I told her about them and she said she didn't want to take the boys out of schooll and that was 7 years ago plus she didn't want to leave her friends.The towm she lived in homes started at the$400,000 . the own we moved to was only 15 miles away.Our home was only $255,000 and we sold it for $ $450,000 In 2004 . They have no open on their cerdit cards. Should we help them? Hubby had LC 4years ago ( a non smoker) plus enbolisims In both of his lungs two years .. We moved to a state that his Co is located though we can live in any state as long as it is close to an airport. We first moved to FL in 04 where the co is located and then sold that house since we both hated fL and moved to NC
I have no idea what to do. We could move back to CA since we lived there for 25 years. Love the doctores there and homw prices are down. I just hate to sel another house all over again.
DD has a job as a yard duty person at her daughters school. No money there, her husband sets up shows in Barzil, China and India. Plus the US (elcetronic shows) He haa workded there for 18 yreas with very few raises. He heads the shows up.He doen't want to switch job. He coudld he is that good.
Last edited by lorriem; 03-26-2009 at 07:52 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
