rainedrop61 asked:
their attorney didn’t put in 2007 or 2008 taxes. They where told to bring those in in 10-14 days (which they did) and he would put it through. Wonderful Right? Wrong. The following week My brother in laws company put him on a “on call” list as he’s a local trucker. His hours won’t go back for 8 weeks. As that is when the new management in his firm takes over. So until the first of June they are only living off of what my sister brings in every 2 weeks and what he brings in every week (if he gets called in). So far he worked 2 days last week and 3 days this week. So my question is, What do they do about their house. They don’t want to lose it. But at least till June money is super tight. Besides to move out means putting money in a mobile home to rent that right now they dont even have that. My brother in law is scared that if they tell their bankrupcy attorney. He will advice them to lose the house. But, in June he will start to bring in 600.00 take home if not more a week. They just need to get through May. They are so lost they don’t know what to do. Does anyone have any advice for them I can pass on? Please no smart a answers. This is very serious. My sister has been in a deep depression for over a week over this. They dont have any medical insurance as that went by the wayside a while back when the company was hurting after the first of the year. Please please someone give them some good advice. They have been bombed with one bad news after the other. And I don’t know how to help them. Thank you. And God bless!!!
their attorney didn’t put in 2007 or 2008 taxes. They where told to bring those in in 10-14 days (which they did) and he would put it through. Wonderful Right? Wrong. The following week My brother in laws company put him on a “on call” list as he’s a local trucker. His hours won’t go back for 8 weeks. As that is when the new management in his firm takes over. So until the first of June they are only living off of what my sister brings in every 2 weeks and what he brings in every week (if he gets called in). So far he worked 2 days last week and 3 days this week. So my question is, What do they do about their house. They don’t want to lose it. But at least till June money is super tight. Besides to move out means putting money in a mobile home to rent that right now they dont even have that. My brother in law is scared that if they tell their bankrupcy attorney. He will advice them to lose the house. But, in June he will start to bring in 600.00 take home if not more a week. They just need to get through May. They are so lost they don’t know what to do. Does anyone have any advice for them I can pass on? Please no smart a answers. This is very serious. My sister has been in a deep depression for over a week over this. They dont have any medical insurance as that went by the wayside a while back when the company was hurting after the first of the year. Please please someone give them some good advice. They have been bombed with one bad news after the other. And I don’t know how to help them. Thank you. And God bless!!!
November 3rd, 2009 at 2:49 am
They need to do everything they can to avoid bankruptcy. It is hard enough for people with good credit to borrow money these days. If they declare bankruptcy, their credit will be shot for 10 years and they won’t be able to get financing for anything. If they lose the house, it won’t be the end of the world. They might feel relieved to be out from under the pressure. Everyone talks about “building equity” and not throwing your money away in rent. I think that is a big lie perpetrated by the mortgage brokers and banks. All loans have front loaded interest and you pay interest for years before you have any equity to speak of. You pay far more in interest than you gain in equity for the first 10 years. Then, once you pay the property taxes, repairs etc. you really aren’t ahead at all.
It sounds like even if they squeeze through this tough period, they will still be in a situation where money is always tight. They will never be out from under the pressure unless the make the gut wrenching decision to live more modestly.
My husband and I made that decision 3 years ago and gave up our dream home. A house is just a house. It was sad at first, but now we are so glad we did it. It is so nice to be able to afford things for our kids and just not feel the pressure. Now we have significant savings as well so that if something happens, we have the funds to get through that. You can never do that if you are living paycheck to paycheck.
I suggest you go to a guy named Dave Ramsey’s web site. He has a plan for people who make less than 50K a year. We followed his strategy for gettng out of debt.
November 4th, 2009 at 11:39 am
Your question is a little scattered, so I’m not 100% clear on what you are asking. It sounds like your sister and her husband own their home with a mortgage. If that is the case (or even if it isn’t), they should contact their local housing authority and inquire as to whether or not they might qualify for any of a multitude of subsidies designed to prevent foreclosure and/or homelessness, modify non-affordable mortgages, etc. At the very least, they ought to be assigned a case worker to help them through this difficult period.
They could also contact their lender – they may qualify for a mortgage modification through new federal programs.
November 6th, 2009 at 7:01 pm
If they are intent on keeping their home, they should contact their lender. During the winter, our small business suffered and we had to call our lender to see about rearranging our payments. We had to outline the plan and send it into them, but they agreed to let us not make payments for 3 months and then divide those payments over the the following 6 months.
November 8th, 2009 at 10:12 am
He needs to be 100% honest with his attorny. Its unlikely that he’ll be forced to sell the house. Including it in the bankruptcy will give them protection. But if he falls behind AFTER the bk, and it was not included, he’s screwed. Lying to your own lawyer is about the stupidest and most self-defeating thing anyone can do.