I just wanted to give everyone an update on my progress here....
I called CCCSOC (Consumer Credit Counseling of Orange County). They can help you with your financial problems and such. I won't explain it all here. But you can look it up at cccsoc.com
I did tons of research thru HUD and this great resource on you debt and collectors that are calling you. Go to the link below...
I'm not sure I did the right thing by calling the collectors myself but I just was calling them to tell them I had an appointment with a counselor (Jan 28) to fix this situation. Unfortunately, he told me they do not work with Credit Counselors, but when you settle your large debt with the collectors, cccsoc will help you with your final debt.
Remember, my 2nd loan that the collectors are trying to get from me is a little over 100k. Of course, this guy was able to keep me on the phone and try to settle with me. I ended up being on the phone with him for about 40 minutes. We went back and forth about everything. This is what he ended up offering...(this is after my initial 3k offer...haha...I tried!).
These collectors have your actual available credit information. He was telling me that I have at least 17k in available credit and if it was ok with the bank, they could possibly settle for that, no tax consequences. Of course, that is totally wiping me out but a bit better than 100k. Am I jumping the gun here? Is it wrong for me to believe that is a good settlement?
Well, of course I didn't settle even though the guy was trying to convince me the banks will most likely not go lower. They tell you to seek help from others or to even take out a loan for what you settle, which I think is ridiculous since they won't give me a loan in the first place. But of course, the solution is a co-signer. Who the heck wants to co-sign a loan with a person who is 100k in debt already?
I told the guy to give me the weekend to decide.
First, of all....my question is....does anyone know the tax consequences on a foreclosure? Tax season is coming up and I'm not sure if I can settle for 17k or lower if I am going to get charged for taxes on a foreclosure. Also, my association went unpaid and racked up over 3k. They never came after me, but was wondering if they will later. And last, what about my property taxes? I didn't pay my last two which probably is about 8k I didn't pay out. Sorry to dump my finances on everyone but just curious if anyone knows the answer to all of this. The 17k sounded more of a relief until I though about all the other stuff I may owe.
Please let me know if I any of you think I am doing the right thing or if I just screwed myself....I ended up having a break down on the phone with the collector!!!