If it comes down to that in a few months, is it better to file bk7 before or after foreclosure? We're in FL if that matters.

With the auto industry and my husband losing his guarantee I don't know how many more months we can pay for the house. I do know we wouldn't be able to file and do a ch. 7 for 6 months because of the median income thing.

Is there a way we could stay in our home that long or what happens?

Is there a good site or even book to read about this stuff?

Thanks!

It is taking them a year to foreclose in FL........what kind of rate do you have? Have you called the lender and asked for a modification?

We haven't contacted them yet. Right now we are current on the house. We have a 5.875 fixed on our first mortgage of $400,000 and 8.375 on the HEL (15 year balloon) of $69,600. We have to pay this month's payment but I'm not sure what we will do after that.

My dh's pay has taken a huge hit over the last year due to the economy in S. Florida and we've used so much of our savings already. We are behind on credit cards already but have kept the house, cars and utilities current.

The big blow came this week when my husband lost his guarantee of $10K a month and is now straight commission plus a small salary which looks like it will vary from $5k - $7K a month before taxes, insurance, etc. We can't make it on that with our current bills. I'm working from home but am only making about $700 month and that is about all I can do right now. Our mortgage & HEL is $3700 a month so we were barely making it on his guarantee, which is why the credit cards are already slipping.

I'm almost afraid to pay this month's mortgage because our savings is almost gone... like $150 because we've used it all year trying to hang on until things get better. It is not going to happen anytime soon. If I send that money in and there is no money next month we're in serious trouble.

We have 4 kids so we've got to have a place to live - but if it doesn't turn around soon we're going to have to get to where we can file a clean ch.7.

It has been tough this past year but I never thought we would be at this point. I'm sure lots of other people didn't either.

Is the second lien holder the same as the first? If so I have seen mods down to less than 4%.....Also if the first is Chase they have stopped foreclosing and are working on strictly doing mods....so maybe they can drop the rate to 4% and give you a 5 yr IO loan or something...so before you go late call them.......explain the situation......the last thing a lender wants is another home in foreclosure...

They are both with Citi Mortgage.