In need of foreclosure/bankruptcy guidance
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Posted by lost cause
(12.231.96.239) on March 12, 2003 at 14:25:53:
We put our house on the market to avoid foreclosure. Unfortunately, we aren't getting what we owe. Our first mortgage will be paid in full, but our second will not. They've agreed to a short sale, but want to switch it to unsecured debt. The forms they sent state that it will show on our report as a charge-off, and require our notarized signatures. I'm wary. We cannot afford to make payments at the previous rate. Our income was cut in half last May, leaving us with a current debt to income ratio over 100%. My questions - Should we send them all of our financial info, and sign their form so they will release their lien on the house? Are we at the point that we should file bankruptcy? If so, do we do this before or after the sale of the house? Should we seek legal advice before doing anything? Any imput is greatly appreciated. I have our agent on hold while we try to decide what next, and an anxious buyer on the other end.
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