Mortgage Company won`t renew
My wife and I own our home. Because of the market conditions the value of our home has droped and
is now financed to about a little less than 90%.
Our problem is this, in May I lost my job and we ended up being 2.5
weeks late on our 1st mortgage payment. We managed to work out a deal with them
where they gave us an open term mortgage for 6 months begining July 1
2008, but at 10%, which has made this payment extremely high
($2600/mo). They are not willing to renew the mortgage now, and we
have until the end of January to have them paid out. Our second
mortgage payment is about 900/mo and our line of credit works out to
about 200/mo.
We have tried very hard to find somebody to give us a mortgage, but
have been unsucessful. My wife and I both have pretty bad credit
(partly due to this forclosure, and subsequant hits on our credit
trying to find a mortgage). My mother lives with us, she has no real
assets, but her credit is solid, she makes about $3,000/mo and is
willing to cosign or go on title to help us. I take home about $3,000
per month and my wife takes home about $2,500 per month.
We are very scared at this point that we are going to lose our home,
is bancruptcy an option?
Posted from: Alberta
A bankruptcy has no impact on secured debt (i.e. mortgage). So while the filing of a bankruptcy may help you deal with some of your other debt and thereby providing a little more cash flow to direct towards the mortgage, but it won’t have much of an impact on your mortgage (unless you are forced to sell the house and there isn’t enough of the proceeds to cover the full balance of both mortgages).
So at this point it sounds like you either have to make some arrangements with your existing mortgage lender, or look into take out financing. Essentially this is simply another mortgage to replace the others with.