[inozip]

Ok, here is my situation:
We bought a home 2 years ago.. $350K.. interest only with a second mortgage.
Payments went up to almost $3000 a month after Hurricanes. We cannot make
these payments, so other debt went on credit cards. We owe almost $60K in
short term debt, credit cards, and lines of credit.

We also own a mobile home that was rented. We owe about $75K on it. It is for
sale, but nothing is selling in our area. The home above is also for sale, but
it is not worth what we paid for it, so we are trying to do a "short sale", but again
the market is glutted with condos... nothing is really selling.

We have a decent income between the two of us, $5000 a month. However,
with the credit card debt and other expenses, our total debts per month equal
around $6200.00, creating a shortage.

This caused me to take a higher paying job, working 48 hrs a week, in another state.
This is a short term solution and is creating a lot of problems, in that my husband
is having to manage trying to sell all our property, work two jobs himself, etc.

We really don't know what to do?>?? We can continue this work effort and try
to pay down debt, but the homes are not even retaining their current value, in
fact, they are going down in value every day.

Should we file Bankruptcy and let the banks foreclose on our home? If so, can
they also try and garnish the Mobile HOme, which will then be our homestead?

If I come home, and get a job locally, our income will be around $4000 a month
which really will put us in a situation where we cannot make min payments.

This stress is too much, but if it would be worth it to "hang on" and ride this out
we are both willing to do it to keep our excellent credit record. (however, paying
on negative equity really doesn't make a lot of sense)

Thanks for any advice!:confused:

[Fr_Chuck]

While you can re-affirm a home debt in a bankruptcy which you could do on one of your homes if the lender will agree, But honestly it sounds like you need to get out of all your debt and work on a new budget.
But it is time to start with an attorney.

[excon]

Hello in:

Sounds to me that even with all your work, all you're meeting is the minimum payments. That's not stopping the balances from growing, plus you're living on your credit cards.

I love creative solutions, but I don't have one for you. Bankruptcy was made for folks like you. Keep the real house - it'll eventually go up in value. Get rid of the plastic house - it only depreciates.

Once your outgo is reduced to your mortgage and food, you can pay it down quickly, and when you reverse the upside-down status, you can refinance.

Wish I had better news. At least you're not going on the street, which is where of lot of people are going today who are in a similar situation.

excon