I presently have a second"weekend" home we have been trying to sell for a year now (our primary home isalso for sale going on a year). We can not make both mortgage payments anymore, and have nearly maxed-out our credit cards making up the difference every month. Since a sale of one or the other is not apparently coming anytime soon, should I let second home foreclose(there is no equity in it) and then declare bankruptcy? Orshould I just let second homeforeclose and not declare bankrupt? Our total credit card debts are about $30k, and our homestead has about $250K in equity built-in.
Thanks,
Edgar

Welcme to AMHD. Just curious: you can afford your primary home which has $250k equity? And you have $30k in credit card debt. Are you in a state that allows you and your spouse (I assume) to exempt $250k equity in your primary home?

Hello Ed:

If it were me, I'd borrow some of that equity and pay off the summer house.

You're NOT bankrupt, and the court won't let you declare it to be so. In fact, I'd even borrow another $30K and pay off my credit cards too. You'll be exchanging an expensive interest rate for a cheap one. You might even be able to deduct the interest too.

Yes, you'll be paying for that steak dinner over 30 years, and that ain't good. So, pay off the cards, and cut them up, so you won't do that again.

excon

I doubt you can file bankruptcy with 250,000 in equity in your home. Not up on the exact law there but this appears very high, ( without of course selling your home though bankruptcy to pay debts)

But if you can't pay, don't charge any more to credit cards to pay a house mortgage. Are you renting this seocnd home out?? But yes let it go if you can't pay, and wait to see what happens after that. No push or rush to file bankruptcy yet