I cant afford to pay my home mortgage, car loan and personal loan ...who can I go to?

Monday, 07 September 2009 20:21

Q. I cant afford to pay my home mortgage, car loan and personal loan ...who can I go to?

A. It's so sad to hear your news. Of all the three loans, I would fight real hard for the mortgage. Good mortgage status preserves your home equity value, and also, a mortgage default has more severe consequences on future credibility than a default on any other loan.

Would you be able to pay your mortgage if you didn't have to pay the car and the personal loans? If so, it's best to default on the other loans, while preserving the mortgage. Just default without going into bankruptcy. As your loans age, and collectors give up, you will actually owe less than your original amount.

If that is impossible and you are facing a foreclosure, I recommend you don't give up easily. Try various strategies to restructure your mortgage, contact the agencies that help people avoid foreclosure (www.hopenow.com), if worse comes to worst, short-sell your home to preserve some value. These articles on www.ameri-financial.com will help your situation.

Stay Home by Working with Lenders

Short Selling Your Home - The Right Answer?

Honestly, I hate seeing good people fail under bank's inability to conduct an honorable business. I hope your situation recovers soon.

Good luck!

Moni.