questions on starting to settle CC debt and do a mort. mod.
Date: Fri, 07/30/2010 - 09:08
I am trying to post what I have seen some of you say that I should list:
I just applied for a Mortage Modification with CitiMortage (am behind 2 months).
I have a maxed $75,000 @ 6.5% Home Equity Line of Credit with State Employees Credit Union (of NC).
Q: Should I be able to have them do a modification on that loan? If so, would I have to be behind before they would consider doing it? Also, if so, should I move my checking account which is currently with them?
I am about to stop paying on all of my credit cards and plan to save and then negotiate and settle each one for a percentage payoff. (I am already late on some; I have to save what I can for the possible ballon payment to get current on the mortage in case the modificatin does not get approved).
Here is my cc debt:
AAA (Bank of America) $ 7,183 @ 13%
Chase $ 18,540 @ 7%
CitiBank #1 $ 12,117 @ 0%
CitiBank #2 $ 2,296 @ ?% (was 0, but going up so not sure now)
Coastal Federal Credit Union $ 10,719 @ 14.75 %
Discover $ 8,054 @ 17%
Navy Federal Credit Union $ 14,377 @ 7.9%
Target $ 8,848 @ 20%
Q: Should I try to keep paying on the CitiBank cards until the Mortage Modificatin with them is finalized?
Q: We have a couple thousand dollars in savings accounts setup for my kids (from years ago) at Coastal Federal Credit Union. Should I move those accounts before stopping paying on the Coastal Federal Credit Union card?
Q: Are there any particular things about each of these lenders that I should know as I deal with them over the next several months?
Thank you very much.
Definately move the kids money. With cross collateralization, t
Definately move the kids money. With cross collateralization, the credit union will nab it.
The first rule of "rock bottom" is you first pay housing, food,
The first rule of "rock bottom" is you first pay housing, food, transportation and then you pay your credit cards. If you stopped paying your credit cards would you be able to pay your mortgage? If so then you need to stop paying on those credit cards now. Housing is far more important.
Soaplady is right you need to move those accounts. Credit Unions here have a clause in their membership agreements that they can attach to any accounts in the event you default on any of their loans. So don't take the risk.
The only two creditors that I have dealt with that you have are Chase and B of A. They were relatively easy for me to settle, but my income had decreased 70% and I was looking at bankruptcy.
