Don't give up, there is a sloution for you.
First, you should go to your original lender and explain your current situation to them. They may be willing to renegotiate your loan with you.It would be ideal if you could roll the 2 loans into 1 loan at a better rate. Most lenders would rather do this than have problems down the road with a loan. That should be your first line of attack.
If that doesn't work, please contact me through my website, and I can give you some other suggestions.
What ever you do, keep making your payments on time, you don't want any bad marks on your credit records.
Your options are either to find a way to continue to pay the mortgage and hold onto the home, throw your hnds up in the air and give up and walk away or possibly sell. I would look to sell to try and maintain my credit rating, so would call a couple of local realtors and just over the phone give them a total description of your home and ask for their best opinion of your homes value. They would most probably want to meet with you, , that's fine. With that value you can call your lender and explain your current situation. Let them know your willing to sell (f you are) and seek their permission for a short sale. They will most likely have a realtor or appraiser come out and look at your home and issue a Broker Preferred Offer. The mortgage company would welcome this since it would saves them the costs of foreclosing. The time to plan this is now not when your money is gone and your options narrowed!
PS The grant programs Sandra mentioned are only for purchases, so don't bother trying to find more information on them
The worst case scenario could be that your home is now not worth the mortgage amount and if you can't keep up with the mortgage payments and there is no relief in sight, you might want to consider a short sale with the bank. This is where the home is sold below the amount that is owed on it. Today, you can sign off and be forgiven the difference in the amount and not even have to claim it on your taxes anymore. If you need further information about progressive mortgage programs, please contact me:
RE/MAX VILLAGE SQUARE
#1 - i'd quit paying the mortgage until I got a new job
#2 - keep everything else up to date as best you can (i'm willing to bet that the mortgage is your biggest debt)
#3 - once you have new employment file for chapter 13 bankruptcy. JUST YOU- not your wife.
Chapter 13 will allow you to cure the arrears on the the mortgage over time. And you will get to stay in the house.
#4 - KEEP TALKING TO THE BANK!!! In truth they're not going to give you any real help. But talking to them will keep the wolf away from the door for quite some time.
Best of luck!
You can save yourself a LOT of headaches
He is straight with you..should be able to answer your questions..my clients are happy with him. Know him well. Also, what line of work are you in?
I lived in Fair Lawn for a number of years- nice town.