need advice re mortgage

With the bankruptcy laws about to change on October 17, 2005 I would recommend visiting a few BK lawyers in your area who offer free initial consultations at the earliest opportunity. At least when you make any decision regarding your future, it would be well-informed and based in solid law.

 

No, you are not going to get the bank to allow you to stop paying escrow. The escrow is automatically included in your monthly payment to prevent people from doing exactly what you are trying to do. As they have the responsibility to pay your taxes....it is out of your hands.

You say that you have been able to pay your bills thus far but you are running out of money. I certainly hope that you have NOT been paying unsecured debt such as credit cards and letting your house slip away from you. The FIRST thing that you should protect is the house...and let the others get behind.

Your husband is probably nearing the end of his unemployment period. Perhaps he should consider whether a part time job would bring in more pay than his unemployment. A paper route pays $1000/month....you guys should be doing WHATEVER you can to try and keep the house until he can get permanent employment.

Lastly, what good does you asking about BK do at this point? If you file, you will lose the house anyway.

 

I feel for your situation; this is a tough one.

First things first, you should do a budget analysis of your income and expense. Account for EVERY PENNY that you spend/have spent. Look at your monthly/weekly expenses, and your income. Examine where you can make cuts, as you can always cut something. Analyze your total expense against income, and the balance. a monthly negative has to be forecasted for how long any savings can carry. I recommend reviewing the website http://www. about.com/money. They have great advice, and worksheets for all these situations.

Your priorities are food and shelter. So prioritize your expense and spending towards such.

Now, talk to your bank/mortgage holder. Explain the situation, and explain what your are doing about it (job search, selling uneeded items, etc.) to keep cash coming in.

The bank may offer some relief; they do NOT want to foreclose. It is too expensive, and too much risk for them. Ask if you can defer payments, or pay interest only. You CAN defer the tax escrow payments, however the bank will be uncomfortable with this. A tax lien takes precedence over their note on your home, so they will try to talk you out of that measure.

As advice, if you are not happy with what your bank tells you, or how the conversation goes with the individual you speak with, ask to speak to someone else. I know how hard it is to keep a clear head during these times, but you have to seperate the emotions.

You have really nothing to lose by talking to the bank; sooner or later the situation may come to where you are trying to explain missed payments, etc.. It is always better to communicate, and try a workout.

Also, back to priorities, communicate with all you other creditors. They may offer some relief which you can put towards your mortgage payment/taxes. Pay only the minimum on any other debts, even put off paying credit card debts until your mortgage is taken care of. As for food, you may want to look at food stamps, or other assistance. I recommend talking to your unemployment office representative for assistance possibilities. Your husband may also be able to petition for another 6 months of benefits depending upon the circumstances, but it sounds like he is nearing the end of the time window to apply, so he will need to jump on that.

Good Luck, keep asking any questions that you may have, we're all here to help.

 

Good advice from all:

Prioritize paying the mortgage (the home will pay back dividends)
Find a supplemental job, any job!
Budget like a hawk and stay disciplined.

 

I was in a similar situation. The bank was very understanding and put me on a payment plan, 6 months, I think, renewable at the end. My mortgage payments were reduced, the rest went into an escrow type account, which I wasn't paying on, and I was able to keep up.A year later, when things were better, I refinanced and got rid of the escrow account.

My credit card banks were also good- they reduce payments to almost nothing- one was $10, still reported as on time, and one even let me skip 2 payments without reporting as late.I was also able to have all the late fees removed and the over limit fees resulting from all the added late fees. But I contacted everyone as soon as I knew I couldn't make it, and they were really happy to help. Means more $ in interest for them. It also maintains your credit. If you start missing payments or have late payments, you'll eventually end up talking to the bank anyway, but your credit will be shot. Been there....