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sinking in debt · Mar 1, 2008, 08:47 AM

I live in North Carolina, I have a mortgage of about 32,000.00 on my home, I have about 20,000.00 in Credit card debt, and I only receive Social Sercurity disablility. I can not continue to pay the credit card companies anymore because debt is to high. Have tried to work out better apr's with credit cards but have too much debt for them to consider me. Have tried to get a second mortgage on the house but market is falling and so is the value of my home. Can not get second mortgage to pay of cc debt. Only choice I see is to stop paying the cc debt. Which will hurt my credit score for at lest 7 years but it seems better that bankrupty?
My question is this. Can these credit card companies but a lien on my home and or garnish my income in the back account? This question is asked for the laws of the state of North Carolina only.
I can not lose my home nor can I lose my small income but I feel like I sure could lose the debt of those credit cards. Any help would be good to hear
Thanks
sinking in debt
:confused:

George_1950 · Mar 1, 2008, 08:58 AM

How much is your home worth? If you could sell it in the next few weeks, what would the sale price be?

sinking in debt · Mar 1, 2008, 09:11 AM

Thanks for the email but my home is only worth 57,000.00 and I am rehabing it now. Nothing has sold around me in over three years. Plus I have no plans on selling since this is what I can afford. I can afford my mortgage payment but I can not afford the credit card debt. I just do not want the credit cards coming after me and my home.

George_1950 · Mar 1, 2008, 11:11 AM

You are showing $25k equity in your home, so Chapter 7 may not be available. I also matters whether you are married and the home is jointly titled. The credit companies can sue you and get a judgment which, when recorded, becomes a lien against your home. The judgment also earns interest at the legal rate. When you sell your home the credit companies with judgments get paid first. That is not a good route, in my opinion.

sinking in debt · Mar 1, 2008, 02:43 PM

George_1950, Thanks for your input again. I agree and this is why I am asking about this matter now. I have looked at a second mortgage to pull out 20,000.00 from my home. This would pay off the credit cards. At this point I can not find a second with a better APR (lower) than my current fix rate of 6.832. The mortgage companies say that I need about a APR that is 6.4 to be able to take out the amount needed 20,000.00. They say just keep checking the rate daily and hope that it come my way. In the meantime try to float. I could afford a rate like that but still my not get it because of little income and high CC debt. If I could get that rate then I would be able to pay off all CC debt and save about 400.00 monthly on out go with just my mortgage payment. I would have little to no equity in my home but my home would be my only debt. I have no plans on going any where plus travelling take credit cards and this is what I am trying to stay away from. I can not get a home equity loan because I have been told that at least in NC, home equity loans must be a min of 50,000.00. Well my home does not have that much equity in it right now. My home only belongs to me and there is no other on the title nor anyone that can currently make any claim towards it other than the mortgage company which carry the first.
Therefor I feel like I am right back at square one? What can I do about the credit cards debt? I think in the state of NC these companies can only harrass you by law for up to three years. If this is true then I can avoid my phone or change it for those years. I do know that these companies will sell my debt to collections, most likely in the first year of going belly up. If it is sold to a collection office am I still at rick of liens on my home?
I completely agree with you but I am thinking that this is my only way to stay a float in these waters. It is completely my fault for letting this happen and I am ashamed of myself but it has been a nice plastic ride this far.
My last question for now is can these CC companies garness my checking account of Social Security and if I die and leave my home to someone else with liens on it would they have to pay them off before they could move in my home? I currently have no liens on my house but if I go the not such a good route in dealing with my CC debt then the liens would sit there until I refinanced or until I die. If the first, then I will get burnt with lots of interest and end up paying a lot more than my current debt. If the second and I die and leave my home to someone I care about. What happens to those liens and the debt? Still floating but still sinking in debt fast. I am watching APR's daily and hoping tp continue to make those CC payments. Currently all is current but need a route to take soon.
Thanks again