Foreclosure in Chatsworth>Question Details

Sertel27, Other/Just Looking in 91311

I currently owe my credit cards about 45-50k and pretty much pay interest. My wife has been out of work for about a year now and I cannot pay

Asked by Sertel27, 91311 Wed Mar 3, 2010

these credit cards due to our low income. I am concerned about my primary residence, which has an equity of 0. What can happen to my house if I do file for some sort of bankruptcy? Or what happens if I don't file for bankruptcy and just not pay my payments, can or will they take my house? I was wondering what do you think would be my best option without losing my house?

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A Loan Modification and Debt Reduction Program may be the best options. You are not alone, and new programs are being introduced all the time to help homeowners keep their primary residence.
0 votes Thank Flag Link Sun Jul 31, 2011

Thank you for asking! I cannot give legal advice, but I would sell the house in a short sale at this time. This will minimize the bills at the present time and reduce the damage to the credit ratings in the future. I would be happy to stop by with more information or meet over a cup of coffee at your convenience. Please feel free to call for an appointment anytime. I can be reached at 818-718-8080.

Paul Marduk, Broker
0 votes Thank Flag Link Wed Mar 10, 2010
Sorry to hear about your situation. I realize it is little help to say "you are not alone". Many people are struggling right now to keep their heads above water and save their homes. Hopefully, you can too.

In reality, this is a question for an attorney. If you would like a recommendation of a very good bankruptcy attorney in your area, contact me directly. They will be able to look at your situation and give you the legal answers you need to make an informed decision on how to proceed.

This is not legal advice, just general information about your current situation. As noted below, your home mortgage is a debt which is secured by your home. If you don't pay the mortgage the bank will take your home to satisfy the debt. Your credit cards are NOT secured by your home. If you don't pay your credit cards, the companies will call and harass you, but cannot take your home. Eventually, the credit card company may get around to suing you and filing a judgment lien against your home, but that could take years and most credit card companies don't like throwing good money after bad (in other words if you have not assets, home equity $0 and limited income they will eventually write off the debt). So ....... pay your mortgage if you can.

Meanwhile, contact your bank and start a loan modification process. This will keep them (and unfortunately you) busy for 3 to 9 months, as they gather information and make a determination of whether or not you are eligible for a modification. Then contact a good attorney/cpa/financial advisor and figure out how to deal with your other money problems. If all this fails, then list your home for short sale. This will allow you to remain in control of your life, keep the bank from foreclosing and kicking you out, and will probably buy you an additional 3-12 months in your home. Dare to Dream.

Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Thu Mar 4, 2010
Best confer with attorney however all credit cards are unsecured debt AND your property is homestead. They can't take your home

Bankruptcy will cost you approx. $2K - $5k to file

ODDS for credit card company to sue very low in most circumstances IF so the courts would be tied up all day with credit cards suing card holders.

If you can't pay credit cards you might consider in months down the road settle the debt .


PS I owned a credit repair company for 10 years and consultant to many off these issues.
Web Reference:
0 votes Thank Flag Link Wed Mar 3, 2010
All I know is that if you do not pay for something you have a loan on they can take the thing back. This is true even when that thing is a house you live in.

Remember, credit card debt is unsecured debt. They may be able to get a legal judgement against you but they can not attach your stuff and take it without a court order. if it was me I would pay for the house. I might consider talking to a bankruptcy attorney to find out all of my options.
0 votes Thank Flag Link Wed Mar 3, 2010
Yes, speak with an attorney. I've been having my short sellers get a Free Consultation with Paladin Legal Advocacy Center, they assist with short sales, loan modification, debt consolidation/settlement etc. You should talk to them, they are helping homeowners in CA, NV & AZ.

Go check out their website, it is very informative, you might click on their tabs for Loan Modification or Short sale.
562-430-3053 cell
0 votes Thank Flag Link Wed Mar 3, 2010
Before considering anything, protect yourself and consult with an attorney--most professionals do offer a free consultation.
0 votes Thank Flag Link Wed Mar 3, 2010
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