I have about 40,000 in unsecured debt, I own my house with no mortgage. I built this debt up after my husband abandoned us and our children and then I found out I had received a sexually transmitted disease from my husband, this sent me into a depression and I was unable to work for quite a while.
Now I have left the state to get away from all that, and settled in a small home in another state. I do own this house without a mortgage, and I own it on my own.
I cannot pay my creditors, and I cannot file bankruptcy because of my home I cannot file chapter 7, and because I am not working I cannot afford chapter 13. What I need to know is there anyway a creditor can force me to sell my home, or can they just place a lien?
I am so petrified, that my daughter and I will be homeless.

No, they can't take your home. They can sue you and obtain a judgment against you. That judgment then becomes a lien and it must be paid when you either sell or finance your home. Also, they can attach your bank account and, once you start working they can garnish your salary. But they can't make you homeless.

Hello breez:

UN-secured means exactly that. IF they get a judgment against you, they can place a lien on your home, which means that you'll have to satisfy it WHEN you sell - NOT BEFORE.

Plus, they can attach your bank accounts and garnish your wages.

excon

In most areas, they can't even put a lien on a primary residence for unsecured debt. But the most they can do is place a lien that would need to be satisfied before sale. But, if you own the home free and clear that indicates you either had money to purchase it or you have equity in it that you can borrow against. I would seriously look into an equity loan.

In most areas, they can't even put a lien on a primary residence for unsecured debt. But the most they can do is place a lien that would need to be satisfied before sale. But, if you own the home free and clear that indicates you either had money to purchase it or you have equity in it that you can borrow against. I would seriously look into an equity loan.

I would love to get a equity loan to pay it off, but because the credit report is so bad they will not give me a loan. I have tried. Any suggestions? I did have money to purchase it, as I sold my home in another state and used the proceeds to purchase this house, this was prior to the creditors coming after me aggressively. So I was able to do that. I understand if they lien my house, I just worry about being homeless.
Thank you.

Hello breez:

UN-secured means exactly that. IF they get a judgment against you, they can place a lien on your home, which means that you'll have to satisfy it WHEN you sell - NOT BEFORE.

Plus, they can attach your bank accounts and garnish your wages.

excon

Will they take everything from my bank account? Or can I leave a certain amount in there?

If they attach your account they will clean it out.

I can't believe that you can't get a mortgage or equity loan. While the interest rate may be higher due to your history, you are talking about a secured loan. There has to be a lender willing to underwrite the loan.

If they attach your account they will clean it out.

I can't believe that you can't get a mortgage or equity loan. While the interest rate may be higher due to your history, you are talking about a secured loan. There has to be a lender willing to underwrite the loan.

I agree, but I have checked with about 6 different companies, and denied each time.

Hello again, breez:

Scott is absolutely correct. You CAN find an equity loan given that you own your property free and clear.

You need to look for an unconventional lender. You may only get a mortgage for up to half your home's value, and the interest will be high. But it will cover your debt. Plus, you'll convert NON tax deductible interest into deductible interest.

Look harder. Look in the RE loan section of your newspaper. Ask all those who denied you. Shop well... What you seek IS out there.

excon

i have about 40,000 in unsecured debt, i own my house with no mortgage. i built this debt up after my husband abandoned us and our children and then I found out I had received a sexually transmitted disease from my husband, this sent me into a depression and I was unable to work for quite a while.
Now I have left the state to get away from all that, and settled in a small home in another state. i do own this house without a mortgage, and I own it on my own.
i cannot pay my creditors, and i cannot file bankruptcy because of my home i cannot file chapter 7, and because i am not working I cannot afford chapter 13. What i need to know is there anyway a creditor can force me to sell my home, or can they just place a lein?
I am so petrified, that my daughter and i will be homeless.
Banks are reluctant to give you a loan because you do not have a source of income and you are already $40,000 in debt. You are unemployed. First, look at all your credit cards. The higher the credit line, the lower it will make your score. If some of the available credit amounts are excessive, call and lower the available credit line. Call your creditors and negotiate a lower interest rate, consolidate the debt at a lower rate when possible.

Take a close look at your expenses and cut them as drastically as possible. Then get out the newspaper and find a job. You can not continue to live in a house, charge your living expenses to a credit card and not have an income. Eventually the credit card companies will close the accounts due to none payment. Then what? Before that happens, it is time to take charge of your life.

Banks are reluctant to give you a loan because you do not have a source of income and you are already $40,000 in debt. You are unemployed. First, look at all your credit cards. The higher the credit line, the lower it will make your score. If some of the available credit amounts are excessive, call and lower the available credit line. Call your creditors and negotiate a lower interest rate, consolidate the debt at a lower rate when possible.

Take a close look at your expenses and cut them as drastically as possible. Then get out the newspaper and find a job. You can not continue to live in a house, charge your living expenses to a credit card and not have an income. Eventually the credit card companies will close the accounts due to none payment. Then what? Before that happens, it is time to take charge of your life.

Oh I am not using the cards, stopped over 6 months ago, I do support myself. I do no living on credit cards, that was when I was working but out of work due to different things. I just moved to another state and am currently working for work, have only been here about 4 weeks. I am not living off cards at all.

Once you find employment, the banks may look at you differently. In the mean time, have you asked about a reverse mortgage? It may be just enough to tide you over until you can get your finances in order and start getting paychecks coming in.

Once you find employment, the banks may look at you differently. In the mean time, have you asked about a reverse mortgage? It may be just enough to tide you over until you can get your finances in order and start getting paychecks coming in.
I have to be 62 for a reverse mortgage.

Hello again, breez:

What does your house appraise for, and where is it?

excon

Hello again, breez:

What does your house appraise for, and where is it?

excon

North Carolina about 115,000

In your original post you said; "I was unable to work for quite a while." I took that to mean that you were working now. If you aren't working that could explain the reluctance to give you even a secured loan, if there is no income. But if you have a job, its harder to understand.

In your original post you said; "I was unable to work for quite a while." I took that to mean that you were working now. If you aren't working that could explain the reluctance to give you even a secured loan, if there is no income. But if you have a job, its harder to understand.
I am currently looking for work. I left California where I did have a job. I am just settling in here, it should not take long to find a job. I currently have an income of child support, which pays the bills and feeds us.

Hello again, breeze:

Nobody will loan you the money?? You called everywhere?? Ain't going to happen?? I know somebody down in your neck of the woods who does stuff…

Would you be willing to sell your house for, say $50,000, and enter into a lease with an option to buy the house back at the same price? You'll have to pay rent (whatever the going rate is for a house like that), plus payments on the option. They'd be high payments too. But when you've built, say, $15k in equity on your option, you could exercise your option to again purchase your house back, using the option as a down payment. Then you'll need to make payments on the remaining balance of $35k. They'd be high payments too.

The good news about an arrangement like this is you get your money, and you don't lose your house, that is IF you make your payments on time. The bad news is, if you miss one payment, then you're out in a month with nothing.

excon

Hello again, breeze:

Nobody will loan you the money???? You called everywhere??? Ain't gonna happen???? I know somebody down in your neck of the woods who does stuff…

Would you be willing to sell your house for, say $50,000, and enter into a lease with an option to buy the house back at the same price? You'll have to pay rent (whatever the going rate is for a house like that), plus payments on the option. They'd be high payments too. But when you've built, say, $15k in equity on your option, you could exercise your option to again purchase your house back, using the option as a down payment. Then you'll need to make payments on the remaining balance of $35k. They'd be high payments too.

The good news about an arrangement like this is you get your money, and you don't lose your house, that is IF you make your payments on time. The bad news is, if you miss one payment, then you're out in a month with nothing.

excon

I have tried about 6 places for loans. And no one will do it. I guess because I am unemployed.

No I would not do anything like that? What kind of benefit would that have for me? As yo have said I will not lose my house, so why would I do that? I know they will place a lien, but that's OK with me as long as I don't lose my house. I know when I sell it or refinance that lien would have to be paid.

Hello again:

With $40k in judgments, that are surly headed your way, you won't have an income and you won't have bank accounts. What good is your house if you can't eat?

Plus, the interest continues to accrue (at credit card rates) while they wait for you to sell your house. You have equity of about $115,000 now. With a lien of $40k accruing interest, you won't have ANY equity in left in 7 - 10 years.

That's why you should consider something like this. Otherwise, it's a slow death.

excon

PS> (edited) And, I didn't even mention the legal fees that are going to be stacked up on you. They alone might wipe you out.

Don't make any drastic changes. Hang in there, get a job, cut expenses. Always pay more than the minimum on the credit cards. Consolidate your debt and negotiate as low an interest rate as possible. You do not appear mentally or physically capable to make life changing decisions right now. The idea that you are no longer using the credit cards makes me think you are ready to turn this around. Good for you! We haven't even discussed what help your ex-husband may be forced to provide for his child. Maybe there needs to be an increase in child support.

Your mistake, in my opinion, was in paying cash for the house. I would have used a portion of the money as a downpayment on a house and invested the rest to provide an income and act as an emergency fund. You now have what is called a "solid asset" which isn't worth anything unless you sell it or finance it.

Don't make any drastic changes. Hang in there, get a job, cut expenses. Always pay more than the minimum on the credit cards. Consolidate your debt and negotiate as low an interest rate as possible. You do not appear mentally or physically capable to make life changing decisions right now. The idea that you are no longer using the credit cards makes me think you are ready to turn this around. Good for you! We haven't even discussed what help your ex-husband may be forced to provide for his child. Maybe there needs to be an increase in child support.

Your mistake, in my opinion, was in paying cash for the house. I would have used a portion of the money as a downpayment on a house and invested the rest to provide an income and act as an emergency fund. You now have what is called a "solid asset" which isn't worth anything unless you sell it or finance it.
So can they force me to sell my home?
I cannot make payments on the cards as far as I know, as I have not paid in over 6 months. Even if I did I could not afford what they are asking.
I have tried to get a home equity loan to pay them, but no one will give me one.

My ex husband pays as much as the courts can make him, I cannot get anymore. It is enough that we live on. I am looking for work every day.

No, they cannot force you to sell your home.

Here is a basic summary:

1. They cannot take your home or force you to sell it.
2. They can get a judgment against you.
3. Once they have a judgment it acts as a lien on your property and you cannot sell or finance without paying it off.
4. Once they have a judgment they can attach your bank account and empty it. And each time you put money into it they can take all of it until the judgment is paid off in full.
5. Once they have a judgment they can garnish your paycheck.
6. The amount that you owe them will continue to increase on a ridiculous basis. It will include interest, legal fees and court costs. $40,000 can easily become $80,000 in a very short time.

Here are some suggestions:
1. Keep trying to get a mortgage so that you can pay off the full amount and not have it continue to accrue interest and charges.
2. Find a job asap and then make a payment arrangement with them so that you can stop the interest from accruing and start paying it off.
3. If your child support is direct deposit, or if you have been depositing a check from your ex into your bank account, it might be a good idea to look into making a different arrangement so that money is not exposed.

No, they cannot force you to sell your home.

Here is a basic summary:

1. They cannot take your home or force you to sell it.
2. They can get a judgment against you.
3. Once they have a judgment it acts as a lien on your property and you cannot sell or finance without paying it off.
4. Once they have a judgment they can attach your bank account and empty it. And each time you put money into it they can take all of it until the judgment is paid off in full.
5. Once they have a judgment they can garnish your paycheck.
6. The amount that you owe them will continue to increase on a ridiculous basis. It will include interest, legal fees and court costs. $40,000 can easily become $80,000 in a very short time.

Here are some suggestions:
1. Keep trying to get a mortgage so that you can pay off the full amount and not have it continue to accrue interest and charges.
2. Find a job asap and then make a payment arrangement with them so that you can stop the interest from accruing and start paying it off.
3. If your child support is direct deposit, or if you have been depositing a check from your ex into your bank account, it might be a good idea to look into making a different arrangement so that money is not exposed.
Thank you very much. How can they clean out bank accounts? I mean how can people live if they can take everything?
My child support is direct deposit from the State of California.

Once they have a judgment they can apply for an order to attach any bank account that has your name on it and then take everything out of that account. If you have any joint bank accounts with other people such as a parent, sibling or friend then they can also attach those accounts and clean them out as well. That is why it is so important for you to work something out with them before they get a judgment against you.

Once they have a judgment they can apply for an order to attach any bank account that has your name on it and then take everything out of that account. If you have any joint bank accounts with other people such as a parent, sibling or friend then they can also attach those accounts and clean them out as well. That is why it is so important for you to work something out with them before they get a judgment against you.
I totally understand and wish I could. But right now I have nothing to work out with them as I have no money. I will get a fairly large inheritance and will pay them when I get it, but that could not be for years and years. Who knows.
I just feel lost and scared.

I understand that you're willing to pay them when you can but I think you're missing a very important point: the longer you wait to try and work something out with them, the worse it will be. And I mean MUCH worse.

Keep calling different lenders. In the meantime take the first job you can find. Then call the cc company, tell them that you finally got a job and you want to start paying them. This way you take control. Being in control makes "lost and scared" disappear. :)

I understand that you're willing to pay them when you can but I think you're missing a very important point: the longer you wait to try and work something out with them, the worse it will be. And I mean MUCH worse.

Keep calling different lenders. In the meantime take the first job you can find. Then call the cc company, tell them that you finally got a job and you want to start paying them. This way you take control. Being in control makes "lost and scared" disappear. :)
Will they accept payments even though they are not minimum payments?
Thank you so much.

I'm sure they'll take whatever money you will give them but I'm not sure if giving them less than the minimum will stop them from getting a judgment. There are other experts on this site who are more experienced in judgments and collections. Try sending a PM to Mr. Yet to get his opinion. Also, hopefully ScottGem, excon and FrChuck will chime in with their opinions.

Hello again, breez:

LisaB (an attorney) makes my point. You have a freight train boring down on you. True, they can't take your house. But if they can drain you of ALL your equity, that's pretty much the same thing.

Yes, my solution is radical, creative and eminently doable. The point is, you MUST do something radical. Paying off the credit cards is a great idea. But you went into debt living a California lifestyle. I doubt you can pay it back with North Carolina wages. Even if you get two jobs and collect cans on the side, the maximum income you'll make will probably be less than your minimum payment - and you'll have nothing left over to buy groceries.

A first mortgage would be ideal... Please don't wait.

excon

Thank you very much. How can they clean out bank accounts? I mean how can people live if they can take everything?
My child support is direct deposit from the State of California.

You are missing a point here. They didn't force the charge cards on you. They didn't force you to use them. You incurred the debt. They are in the business of money for a profit. If people don't pay they have to take steps to recover what they loaned. How can THEY live if people don't pay them back?

If they get a judgement against you they WILL attach your bank account. Can you change the direct deposit? If not, then you should be at the bank as soon as you know the payment has been despoited withdrawing the money.

And do what has been recommended, get a job and get an equity loan and pay off the debt.

Hello again, breez:

Scott is absolutely correct. You CAN find an equity loan given that you own your property free and clear.

You need to look for an unconventional lender. You may only get a mortgage for up to half your home's value, and the interest will be high. But it will cover your debt. Plus, you'll convert NON tax deductible interest into deductible interest.

Look harder. Look in the RE loan section of your newspaper. Ask all those who denied you. Shop well... What you seek IS out there.

excon
Believe me I would love to. But I don't even work.

You need to make a decision,about your problem. If you put nay money in the bank they will find it and garnish it.

You own a home free of any mortgage, why not sell it and pay off all you debts, this would give you peace of mind and you can start over without any thing hanging over you.

The longer you wait the harder it will be to settle all these accounts. If you sell the home you can call all the creditor and ask them what they would take to settle their accounts, since you don't have the property anymore there will be nothing for them to lien and may opt to settle for less than owed.

Once you decide what you want to do you will relax and have peace of mind.

Or you can try to fight them, but this too is no the way the settle this matter.

This will be you choice and you must decide what you want to do.

You need to make a decision,about your problem. if you put nay money in the bank they will find it and garnish it.

You own a home free of any mortgage, why not sell it and pay off all you debts, this would give you peace of mind and you can start over without any thing hanging over you.

The longer you wait the harder it will be to settle all these accounts. If you sell the home you can call all the creditor and ask them what they would take to settle their accounts, since you dont have the property anymore there will be nothing for them to lien and may opt to settle for less than owed.

Once you decide what you want to do you will relax and have peace of mind.

Or you can try to fight them, but this too is no the way the settle this matter.

This will be you choice and you must decide what you want to do.

I would love to be able to pay them, but I also cannot be homeless.
I am all alone. I have no family, no husband and just moved to a new state and have no great friends either. I could not sell it, pay them and have enough to live. It just would not work.