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Ok here's my situation: Currently can't afford home, have about 40k in cc debt and have two properties that are going into foreclosure soon since obviously I can't pay.

What do I do? My main goal is to be able to stay in my current home, be able to pay my cc. But my credit's going down bcuz of the foreclosures so I can't refinance.

Any advice?

Do I contact the cc companies and try to negotiate a debt reduction?

Please help.

charlesarmbruster · Posted: Wed Oct 31, 2007 3:20 pm Post subject: need advice

You can sell the other property, and you can then refi your primary residence with an FHA product up to 97% cashout -- try to get a sales contract on the investment property.
Otherwise, try doing both at once, with a bridge loan on the investment property. If you are free of the other home payment/debt, you can securely approach the FHA product as long as your debt payments are current -- no worry about the credit score -- a good letter of explanation will convince the underwriter.

Posted: Thu Nov 01, 2007 4:53 am Post subject:

Hello IKA,

You may try to avoid foreclosure by signing a deed-in-lieu of foreclosure or a short sale. For this you need to talk to your lender immediately.

You may think of debt consolidation or debt repayment options to pay off your credit card debts.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi IKA,

Foreclosure will have very bad affect on your credit report. It will drop your credit score about 200 to 300 points where as if you try for short sale or deed-in-lieu, your score you will drop about 80 to 100 points. So talk to the lender and try for deed-in-lieu and if he does not agree with it, you should try for Short sale.

You can get more information on http://www.mortgagefit.com/bankruptcy/avoidforeclosure-sellhome.html

Thanks,
Larry

gmakerley1 · Posted: Mon Nov 05, 2007 2:21 pm Post subject:

Boy oh boy, the advice I see given here is scary.

The likelihood of getting a bridge loan on an investment property is slim to none. With payments past-due on both credit cards and mortgages, you are in jeopardy all the way around.

Cash out refinances max out at 95%, not 97%.

The best way in which you can stay in your current home is to contact your mortgagee immediately, and work out the best possible solution. You may need to contact (probably should do this no matter what) Consumer Credit Counseling Service to arrange for payment of your credit card debt. Do not - and I mean this - do not allow anyone to charge you for rearranging your credit card debt. CCCS is free and reputable and will work with you closely.

Caron · Posted: Tue Nov 06, 2007 6:05 am Post subject: RE:

Hi Larry,

I did go through the page you have mentioned but it speaks about something different. It is all about a person selling home to avoid foreclosure whereas IKA doesn't want to sell his home. He wants to avoid foreclosure and stay at his current poirperty. I think you have missed out something in the query here.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Caron,

You are right. I have just given a wrong url. Sorry IKA Smile

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