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Can I keep my house?

We recently obtained a new mortgage on our home in June 09 but because of plummeting real estate values, the lender refused to include our debt consolidation with the mortgage as originally planned. Not enough equity in the house. We lost more than $25,000 in equity in just 6 months, and it has nothing to do with the condition of the property. As a result, we are now stuck with this loan at an insane interest rate and we cannot sustain the payments without everything else falling behind as is the case now. The loan is secured to the house. I am a little confused by the rules for our situation. Our home was appraised at $150,000 in June 09 and more recently at $160,000 (Dec 09). Mortgage is $105,000 and is paid to date, and the secured loan balance just under $23,000 and is 1/2 payment behind. Credit Card debt amount to about $5,000. If I file for bankruptcy, is there a way to keep my house? If not, do we have any other options available to us that allow us to keep the house? We have tried to explain ou The loan is secured to the house. I am a little confused by the rules for our situation. Our home was appraised at $150,000 in June 09 and more recently at $160,000 (Dec 09). Mortgage is $105,000 and is paid to date, and the secured loan balance just under $23,000 and is 1/2 payment behind. Credit Card debt amount to about $5,000. If I file for bankruptcy, is there a way to keep my house? If not, do we have any other options available to us that allow us to keep the house? We have tried to explain our situation to the `financial services` company, aka loan sharks but they have refused to re-negotiate our agreement in an effort to save our home. Any ideas or do we have to just suck it up and continue to sink further in debt until real estate values return to `normal`?

Posted from: Ontario