Posted on: 23rd Dec, 2008 11:51 am
I have over 1.394 million in debt.
544 from a 1st and 2nd mortgage which is current . I am on the mortgage but not on the title.
400k from an investment property that I signed over to a real estate company that would manage it. They paid me a 10k option. After 1 year they stopped paying the mortgage. The bank foreclosed but the sale is in two months
350k was from a business. I had two businesses and one of them I could not sell and the debt flowed to me personally. Most of it from a lease and sba loans and credit lines.
100k was personal of which some of that was used as advances to the business. Some of it was supporting household shortfal. I was current with this debt until the business debt flowed to me.
I went to debt elimination but they seem more skilled in unsecured debt that in hindsight I could have dealt with myself if I had money. My credit was over 750 score until about 9 months ago when collections and judgments started. The debt elim center claimed they needed money to settle debts which I understand but they didnt say by the way you may not be able to get a job. Getting a job is difficult with bad credit. I also have 2 kids I was taking care of and my wife works full time. We want to downsize the expensive house but cannot in this economy without a 50k loss and needing money to move. Her salary is over the chapter 7 limit for a family of 4 but still not enough for the expensive house. Lawyers seem reluctant to help. Maybe because its such a voluminous amount of debt with sba loans etc. I have had job offers of about 90k but they may get rescinded due to bad credit. I know once I do get a job just about all of it will have to go to creditors but the amount is so high and because it was a business I would rather it be cleared in a bankruptcy or perhaps negotiations with the ones that have went to judgment and collections or have been written off. Its difficult to come up with that much money. Even taking out the personal residence and the real estate property which may cover itself I am still looking at a foreclosure on my credit for at least 10 years and 450k in debt. Employers do not care that I had great credit for 30 years or that I was honarably discharged or have my masters or that I dont drink and that Im a model citizen with one traffic ticket in 45 years, they just figure you have bad credit so goodbye we are not hiring you. Why does the govt push for people to try to have their own business knowing that most people fail in the first 5 years then end up with bad credit and unemployed
544 from a 1st and 2nd mortgage which is current . I am on the mortgage but not on the title.
400k from an investment property that I signed over to a real estate company that would manage it. They paid me a 10k option. After 1 year they stopped paying the mortgage. The bank foreclosed but the sale is in two months
350k was from a business. I had two businesses and one of them I could not sell and the debt flowed to me personally. Most of it from a lease and sba loans and credit lines.
100k was personal of which some of that was used as advances to the business. Some of it was supporting household shortfal. I was current with this debt until the business debt flowed to me.
I went to debt elimination but they seem more skilled in unsecured debt that in hindsight I could have dealt with myself if I had money. My credit was over 750 score until about 9 months ago when collections and judgments started. The debt elim center claimed they needed money to settle debts which I understand but they didnt say by the way you may not be able to get a job. Getting a job is difficult with bad credit. I also have 2 kids I was taking care of and my wife works full time. We want to downsize the expensive house but cannot in this economy without a 50k loss and needing money to move. Her salary is over the chapter 7 limit for a family of 4 but still not enough for the expensive house. Lawyers seem reluctant to help. Maybe because its such a voluminous amount of debt with sba loans etc. I have had job offers of about 90k but they may get rescinded due to bad credit. I know once I do get a job just about all of it will have to go to creditors but the amount is so high and because it was a business I would rather it be cleared in a bankruptcy or perhaps negotiations with the ones that have went to judgment and collections or have been written off. Its difficult to come up with that much money. Even taking out the personal residence and the real estate property which may cover itself I am still looking at a foreclosure on my credit for at least 10 years and 450k in debt. Employers do not care that I had great credit for 30 years or that I was honarably discharged or have my masters or that I dont drink and that Im a model citizen with one traffic ticket in 45 years, they just figure you have bad credit so goodbye we are not hiring you. Why does the govt push for people to try to have their own business knowing that most people fail in the first 5 years then end up with bad credit and unemployed
Hi williepower!
Welcome to forums!
I can understand how frustrated your are. With the recession in the economy a lot of people are facing these circumstances.
You have mentioned that you have 1st and 2nd mortgage on a property but your name is not on the title of the property. Didn't the lender object to this? Normally lenders prefer that the mortgage should be in the name of the owner of the property. You have mentioned that you are current on it and I guess you will not be facing any problem in paying the dues.
As far as the investment property is concerned, is the mortgage on that property still in your name? If the mortgage is in your name, then the foreclosure on that property will badly affect you and lower your credit score by 250 points. If you had an agreement with the real estate company that they will be paying the mortgage payments, then you can easily sue them. But you will have to contact an attorney for that.
As far as I know, the collections and judgments should have also affected your credit. It is not that foreclosure is the only option for you. You should speak to the lender and check out the other options available for you. Check if the lender can offer you a loan modification or a forbearance. Apart from this, to know more about avoiding foreclosure, check out the following link:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
I can understand how frustrated your are. With the recession in the economy a lot of people are facing these circumstances.
You have mentioned that you have 1st and 2nd mortgage on a property but your name is not on the title of the property. Didn't the lender object to this? Normally lenders prefer that the mortgage should be in the name of the owner of the property. You have mentioned that you are current on it and I guess you will not be facing any problem in paying the dues.
As far as the investment property is concerned, is the mortgage on that property still in your name? If the mortgage is in your name, then the foreclosure on that property will badly affect you and lower your credit score by 250 points. If you had an agreement with the real estate company that they will be paying the mortgage payments, then you can easily sue them. But you will have to contact an attorney for that.
As far as I know, the collections and judgments should have also affected your credit. It is not that foreclosure is the only option for you. You should speak to the lender and check out the other options available for you. Check if the lender can offer you a loan modification or a forbearance. Apart from this, to know more about avoiding foreclosure, check out the following link:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Feel free to ask if you have further queries.
Sussane
the personal mortgage was quitclaimed into my wifes name years ago. a lawyer did this for us. i had businesses and thought this was safer. the investment property was a subject to mortage deal. the company used my credit for an option fee and they were fixing up the property and were to refinance. apparantely they went out of business and screwed a lot of people. the collections and judgments and all the business expenses a;ready tanked my credit down to 500 credit score.
Hi Willie
I can understand how frustrated you must feeling as your credit score has dropped to 500. But did you speak to your lender about a loan modification or forbearance? You have mentioned
" Apparantely they went out of business and screwed a lot of people. "
I guess they became bankrupt. In that case, they must have sold your mortgage to another mortgage lender. In my opinion you should try to contact with that lender and check out your options.
Thanks.
I can understand how frustrated you must feeling as your credit score has dropped to 500. But did you speak to your lender about a loan modification or forbearance? You have mentioned
" Apparantely they went out of business and screwed a lot of people. "
I guess they became bankrupt. In that case, they must have sold your mortgage to another mortgage lender. In my opinion you should try to contact with that lender and check out your options.
Thanks.