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  1. #1
    Melissa Calapp
    Guest

    Default Before Our Credit is ruined


    We have decided to let our house foreclose, which will ruin our credit. Does anyone have any advice on what we should do before it is ruined? We currently have all of our credit cards at 0% and after our credit is damaged will probably not be able to flip them to another 0%. We owe about $25,000.We will be able to pay things off faster this way, as it will save about $1000 a month to move to an inexpensive rental, so we still think it is worth it. I'm just wondering if any of you have been there and have advice.

    Melissa



  2. #2
    Suzi McMullen
    Guest

    Default Before Our Credit is ruined


    Sadly, once the foreclosure shows up the credit companies will see it on the report because they review it often. They will probably raise you up the highest interest rate they can which in some states is almost 30%! You may find that the savings you get from letting your house go will be ate up by the min. payments on your cards going up so drastically. I think you should really re-think this.

    Suzi
    [quote]
    ----- Original Message -----
    From: Melissa Calapp
    To: Budget101_@yahoogroups.com
    Sent: Thursday, July 31, 2008 12:54 PM
    Subject: Budget101.com : Before Our Credit is ruined






    We have decided to let our house foreclose, which will ruin our credit. Does anyone have any advice on what we should do before it is ruined? We currently have all of our credit cards at 0% and after our credit is damaged will probably not be able to flip them to another 0%. We owe about $25,000.We will be able to pay things off faster this way, as it will save about $1000 a month to move to an inexpensive rental, so we still think it is worth it. I'm just wondering if any of you have been there and have advice.

    Melissa






  3. #3
    Danielle Blajos
    Guest

    Default Before Our Credit is ruined

    Hi Melissa, I would say look for a non profit organization that helps with debt management. They will help you consolidate your bills and help lower your interest rate when the interest starts to climb. I have heard here in the recent months that foreclosure help is coming but have not really looked into that myself. I was told one time to let the credit card bills go and save your home. After you have missed a couple of payments on your credit cards the rate will go up then you can consolidate those bills with a debt management company and get the rates lowered and pay off that debt in 4 years or so verses 20 years. I don't know if you or your husband are able to get another job just for a period of a year or so but that's what my husband and I are doing just to help pay off our debt faster and it is starting to show promise. If you haven't already exhaust every avenue and write allyour credit cards down, monthly payments and see what will work
    best for you in the job area. My husband is working just twenty more hours a week and it is helping. I am working and going to school so I can't get a second job at this time.Just some suggestions for you. I hope to have helped you a little bit. Danielle

    Suzi McMullen <smcmullen@kc.rr.com> wrote: Sadly, once the foreclosure shows up the credit companies will see it on the report because they review it often. They will probably raise you up the highest
    interest rate they can which in some states is almost 30%! You may find that the savings you get from letting your house go will be ate up by the min. payments on your cards going up so drastically. I think you should really re-think this. Suzi [quote] ----- Original Message ----- From: Melissa Calapp To: Budget101_@yahoogroups.com Sent: Thursday, July 31, 2008 12:54 PM Subject: Budget101.com : Before Our Credit is ruined
    We have decided to let our house foreclose, which will ruin our credit. Does anyone have any advice on what we should do before it is ruined? We currently have all of our credit cards at 0% and after our credit is damaged will probably not be able to flip them to another 0%. We owe about $25,000.We will be able to pay things off faster this way, as it will save about $1000 a month to move to an inexpensive rental, so we still think it is worth it. I'm just wondering if any of you have been there and have advice. Melissa



  4. #4
    J Diane Northcutt
    Guest

    Default Before Our Credit is ruined


    Melissa,
    Letting the house go and paying off the credit cards is backwards. We just went through bankruptcy this year. The courts require you to go through credit counseling when you file. They told us that the first thing we should have done was stop paying the credit cards . They counselor and the laywer both said we should have been paying the mortgage and letting everyone ( creditors) else go.
    File bankruptcy, it will eliminate altogether or tremendously reduce the credit card and other debt depending on how you file. You can still keep the house in most cases, if you can make the payments.
    Your credit will be ruined but you will still have the house.
    I strongly suggest that you consult a bankruptcy lawyer before you do anything. Consultations are usually free. We consulted two lawyers before we took the plunge. For something this serious, you need an experts advise.
    Diane
    [quote]




    <DIV id="ygrp-msg">








  5. #5
    Jessica
    Guest

    Default Before Our Credit is ruined





    <DIV style="FONT-FAMILY: Calibri;">In the area I live almost all apartment complexes and majority of private owned stand alone rentals--the people do credit checks. You may want to check on this and have something lined up before the foreclosure takes place.
    <DIV style="FONT-FAMILY: Calibri;">
    <DIV style="FONT-FAMILY: Calibri;">Jessica
    <DIV style="FONT-FAMILY: Calibri;">

    -------Original Message-------


    From: Melissa Calapp
    Date: 7/31/2008 1:01:56 PM
    To: Budget101_@yahoogroups.com
    Subject: Budget101.com : Before Our Credit is ruined





    We have decided to let our house foreclose, which will ruin our credit. Does anyone have any advice on what we should do before it is ruined? We currently have all of our credit cards at 0% and after our credit is damaged will probably not be able to flip them to another 0%. We owe about $25,000.We will be able to pay things off faster this way, as it will save about $1000 a month to move to an inexpensive rental, so we still think it is worth it. I'm just wondering if any of you have been there and have advice.

    Melissa













  6. #6
    Keith
    Guest

    Default Before Our Credit is ruined

    I would speak with the bank a real estate agent and so on I would

    sell the house for a loss and take out a personal loan on the

    differance than let it go in foreclosure as there are several

    different ways to let go of the house with out forcloseing It can be

    sold before and save the credit rating a little/



    Keith



    --- In Budget101_@yahoogroups.com, "Jessica"

    wrote:

    >

    > In the area I live almost all apartment complexes and majority of

    private

    > owned stand alone rentals--the people do credit checks.



    <TRIMMED>






  7. #7
    Wendy
    Guest

    Default Before Our Credit is ruined

    please god, melissa, dump the cards and not the house!!!

    I understand how it is to have that nasty balloon payment, but I tell

    you what, i haven't payed my credit card in 7 years and they still

    haven't tried to garnish my wages or anything. what's the worse they

    can do, take away your birthday??? ok, so I can't buy a car of any

    decent value any time soon, and I can't get another credit card, don't

    want it anyways. will I pay them back?? yes eventually, but my family

    and their wellbeing comes before the preditory card companies and their

    scandalous ways. I understand that it does take more to maintain a

    house than a rental, but with that rental, you still have to go thru a

    credit check and when you have a forclosure there, you might as well

    have a divorce. please reconsider.



    concerned.





    also, it's a stretch, but I know that the hospital where I used to live

    was always looking to buy houses. They would but them for the doctors

    that they recruited from other states. you could try to sell it for a

    quick turn around, but don't fold








  8. #8
    Lynne
    Guest

    Default Before Our Credit is ruined

    <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
    <font size="-1"><font face="Comic Sans MS">Melissa,

    I lost my home a few years ago through foreclosure after I became
    disabled and my income dropped to a fraction of what it had been
    previously. Also, at the time, I owed an astronomical amount in doctor
    and hospital bills plus $37,000 in credit card debt which I could no
    longer continue paying. I was not even in a position where I could
    take advantage of their offer to settle the accounts for 1/3 of what I
    actually owed them. In my case, nothing damaged my credit as badly as
    the foreclosure did.



    I've since talked with several people who filed bankruptcy and were
    able to get new credit cards or other loans within 6 months afterwards
    so I'm inclined to think a bankruptcy doesn't even trash your credit as
    badly as a home foreclosure. So in my opinion, if you're going to
    allow your house to go into foreclosure, you may as well default on
    your credit cards too since struggling to make the payments won't save
    your credit.



    But there are a few things to take into consideration before you make
    any definite decisions though. The mortgage company will sell your
    house for whatever they can get in a quick sell and if that amount
    doesn't cover the payoff, they can sue you for the difference. The
    credit card companies will probably sue you as well and once a judgment
    has been put against you, the creditors will garnish wages, levy
    against any assets you may own and freeze your bank account.



    This is what happened to me. I had no income of any kind during the 6
    months it took to start receiving my disability and that was ROUGH
    enough but was nothing compared to the hardships I endued when my bank
    account got frozen without any warning. My disability payment was
    direct deposited into my account and I was not allowed to withdraw any
    of it. I had less than $4 cash in my pocket, car's gas tank on empty,
    middle of winter and ended up homeless from December until the end of
    April. I was able to obtain a lawyer through Legal Aid to get my bank
    account "unfrozen" but it took several months and other resources I
    qualified for didn't come through until much later. I'm living in
    government assisted housing now but I was on a waiting list for 21
    months before that came through. Just because there's resources
    available in your city doesn't mean you're going to get help
    immediately when you need it so check on those things before you make
    any definite decisions about anything. Protect yourself as best you
    can by being well informed about all the possibilities of what could
    happen even though you're sure it can't or won't.



    It might not be a bad idea to set up a free consultation with a good
    bankruptcy lawyer and see if there might be a particular chapter of
    bankruptcy that might allow you some debt relief and be a better option
    for you. I don't have any personal experience with bankruptcy but I do
    know it won't wipe out any judgments that were put against you prior to
    filing.



    Having said all this, I take it you aren't able to sell your house for
    what you owe against it? Or you don't have an assumable loan on it
    where someone with good credit could have the loan transferred into
    their name? Have you talked to your mortgage company and explained
    your financial situation to them? They might be able to offer you some
    alternative solutions.







    <blockquote cite="mid:30F662560F4D41B287CD4B46AA83B862@SuziPC" type="cite"><span style="color: [/quote]



 

 
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