A Friends situation-- Strategy Suggestions
Date: Mon, 03/30/2009 - 17:03
(Today she was denied SSDI and so will have to fight that (very usual) to start getting any income.)
1. 30 days late on mortgage payment
2. credit card debt of around $27,000 all 180 days oout as of March 2009 (and tehrefore just in collection)
Before this she had fantastic credit...with all of this it has surprisingly only gone down to 605
She is getting collection calls and such and has nothing to bargain with since she has no income at all
She lives with a spouse who has much worse credit and so their house is owned only by her and another piece of property in another state is also in her name
She would really like to avoid bancruptcy or if she can't to do it in a way that it won't be hard to build up her credit again
and she worries that in a bancruptcy the property would be taken away and that the fact that the property they do NOT live in is in her name could make her a target for collection agencies even though she has zero income
Forsety
Firstly, since she has no income, the creditor cannot bring judg
Firstly, since she has no income, the creditor cannot bring judgment against her to garnish her wage to recover the debt.
Now, as far as mortgage payment is concerned, she should call her creditors immediately and inform him of her inability to keep up with mortgage and avoid foreclosure. The mortgage lender may agree to a forbearance agreement which may help her to stop making payment for a certain period of time after which she may have to resume her payments again.
I would also recommend that you "sale" the other property to??
I would also recommend that you "sale" the other property to??a family member. This way if a bankruptcy does happen they would not worry about losing that other property.
"Firstly, since she has no income, the creditor cannot bring jud
"Firstly, since she has no income, the creditor cannot bring judgment against her to garnish her wage to recover the debt."
What about the rental property??? basically it pays the mortgage but couldn;t the credit card companies put a lien on her house or the rental property even though they can't garnish her wages?
They can put a lien on the home, but frankly this means nothing
They can put a lien on the home, but frankly this means nothing outside of she cant sell the properties until the creditors get paid.?? Thats what happend to me i got sued by citibank 1,000 and i had no income.?? they put a lien on my home and this is how the judge explained it to me.?? If i had no intentions of moving, there wasnt really anything they could do to me.
Keep in mind, if you take the option of selling the second home
Keep in mind, if you take the option of selling the second home to a family member you have to do it before it gets to foreclosure status.?? Once a home goes into foreclosure, it can only be sold to in a non arms transaction.?? Meaning, you cant sell it to an obvious family member as it's considered a bailout.
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Crazy, I know, but I don't write the guidelines.
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