late on mortgage and car

My advice is to save your home. If you cannot hang onto the car then let it go. Do everything that you possibly can to save your home.

i agree worry about your home first than your car. good luck. by the way i have found that they will always accept your money i would get in writing that you are current with your payments though.

It sounds like you would be a good candidate for mortgage modification. These days lenders are finding themselves up to their eyeballs in foreclosures. It is a lengthy, costly process. Due to the shear volume of foreclosures, banks are allowing folks like yourself to apply for mortgage modifications where they will lower your interest rate, extend the terms, etc just to keep you from defaulting. This article explains modification more eloquently than I am able to: http://www.pr.com/press-release/127003

What state are you in?

Not sure if that was directed to me or Jessica but if me, Maryland.

It was for Jessica :) because i know in NJ we have mediation program.

Jessica23, really try hard to sell the car yourself rather than having it repoed by the loan company. Because they will often be forced to take bottom dollar for it at auction and you will still be responsible for the difference between the loan amount and the amount they are able to sell it for.

Jessica - I'd recommend an analytical approach to this, if you haven't already needed to make your decision.

Is the home worth saving? Do you estimate that there is equity in the home (e.g. the current market value exceed the total of the loans against the home)? Or are you upside down in your home (e.g. loans significantly greater than the current market value)? Is the place where you live seeing a stablizing of home values?

If you have equity in your home, definately pay the mortgage current. Depending upon your housing market, if you are below water and don't expect the home to appreciate to break-even within the next 3-4 years, you probably are better off "walking away" from the home. Maybe do a deed in lieu rather than let it go to foreclosure. Or try to work out a short sale with your lender. These are slightly better on your credit. It's not fun to swallow your pride and rent an apt or home for a while, but long term, it might be the best move depending upon your situation. Plus at age 23, you probably can buy another home again before you are 28-30 years old.

Also, consider the consequence to losing your car to repo. Can you get to/from work without it. Staying employed is pretty key in this environment. Maybe you can sell it at a small loss, pay the rest of of your savings, then buy a "beater" car for cash.

Just things to consider a bit. These are tough choices.