Re: Will this plan work to prevent bankruptcy and foreclosure?

Posted by mk_378 (128.173.37.19) on January 22, 2004 at 13:16:08:

In Reply to: Will this plan work to prevent bankruptcy and foreclosure? posted by rb41861 on January 21, 2004 at 03:53:00:

Since the house has equity (it can be sold for more than the amount owed on the mortgage), do whatever you can to make full mortgage payments. If they foreclose you will lose that equity and perhaps more. If you won't be able to afford to keep paying the mortgage, or don't want to keep the house, put the house up for sale immediately. You will get a better price if buyers don't know that you're desperate. Again, keep the mortgage current. If you are behind on the payments you will lose that money, in addition to penalties and other fees, when the house sells.

If there is no equity in the house you could walk away from it; this will give you terrible credit (it's already bad from the credit cards anyway though) and also they will try to collect a deficiency later.

Paying a token amount is pointless. You suffer the same penalties as not paying anything at all.

Also you should get a better divorce lawyer to get something in writing obligating your husband to pay his share of the credit card debt. You can use that to get a judgement against him later if he doesn't pay.

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