Easy Home Equity Loan

I have a 2nd mortgage with irwin. 3 years ago i declared bankruptcy for medical reasons but did not reaffirm this mortgage. I did not know that i needed to and Irwin was not present at the hearing. they have tried to foreclose which I stopped and now they won’t let me pay off with a refinance but won’t disclose why. Anyone else have similar problems?

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I have filed bankruptcy 1/ half years ago and I own the house with my 80 year old mother and we need work done on the house.
She was told this is the best way. Or I should say the only way. This is for 30 years at 7.99%. Low payments of 6 a month but we were wondering if she got sick or I did if the payments were behind would they forclose. What does it mean when they say they would probably take a lein on the house. Isn’t a lein and a line of credit the same?

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Here’s our situation. We need to get out of our current house and into one we can both afford and fit into. If it sold today, it would likely pay off the first mortgage, or very very close. But we have a second mortgage that there’s no way it’ll pay off.

The second is with CitiMortgage (who hasn’t been exceedingly helpful at this point), and I’ve asked them to convert it to a unsecured loan os we can sell and get into a house we can afford, and they weren’t sure (well the folks on the phone weren’t sure) if they could do that.

I pointed out to them that currently, they hold zero equity in this house, and if we couldn’t make the payments, they would get zero in foreclosure. Same situation in bankruptcy.

The thing is, we don’t want to just cancel out their portion of the loan, we are willing to pay it back, but just can’t do it right this moment. Foreclosure and Bankruptcy aren’t an option, nor is doing what a lot of Americans are doing and just walking away from a loan we signed for. Unlike most Americans today, we have a little more character than just walking away from a house unless we are literally faced to choose between feeding the kids and paying the second mortgage.

That being said, do you have any ideas how to get them to convert the second mortgage into an unsecured loan at the same terms? It already IS an unsecured loan, because they have no equity. Once this is done, and the lien is released, we can sell, pay off the first, and get into a house we can afford and fit into.
I’m in contact with them, though even the folks in their loss mitigation department didn’t think that it could be done, but we’ll find out. I hear some folks have had success personally contacting the managers and executives involved, giving them a *brief* overview, and asking them if they could help get it resolved.

One thing I’ll note is, these folks probably used to do things like this from time to time, or at least used to work somewhere where they were involved in the dirty day-to-day duties, and they like to feel like they’re still able to make wise decisions in cases like this.

I should add also, I’m willing to have them attach a lien to the new house if they want also, if that’s possible. Though there won’t be any equity to do that.

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I bought a house three yrs ago with no money down. The house is now worth about 0k, down from 0k. I have been paying all my bills on time but choking in them.
My first mortgage is was modified and sold to a new provider and is at 4.125%. My second mortgage is at 10.25%.
First mortgage is about 5k and about 0 a month. Second mortgage is about k and about 0 a month.

I have over k in credit card debt also.

I was advised to try to have the second mortgage forgiven for 1-10% of the loan amount by claiming hardship and mentioning that I’m considering bankruptcy.
If the house is foreclosed they would see no money whatsoever so it might be a good deal for them to get -7k in a lump sum and write off the rest.

If I could make the second mortgage go away, than I might be able to make payments. I’ll get the money from my parents as long as it’s a reasonable amount.

Has anyone done this? Can someone recommend how I should go about it? Or can you suggest other avenues?

Thanks.

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I started the refinance process on my house 11 weeks ago. To this date I am getting nothing from my broker who says she is still working on this. To start with a little background. I filed bky 2 years ago. I bought my house about 10 months ago at a high interest rate and was told I could refi as soon as my bky was 2 years old that was beg of aug. We have since been told by the broker trying to find me a lender that we wouldnt have any problems so after the 1st appraiser for conventional loan then went VA appraiser for a VA loan. The house has appreciated from 158,000 which I bought it for to 229,000. I have also put in 15,000 worth of work into the home since I have purchased it. I have had nothing bad on my credit since my bky nothing late everything on time. What on earth could the hold up be? Is the market really that bad that with as much equity that I know have in the home that the past BKY is killing me like this? By the way I live in Murray, Utah.
I really dont know how it appraised for more. All I do know is that the home appraisal from the sale was for 158,000 in Nov 06, I purchased the home at this price in Dec 06 the 15,000 in upgrades was a complete remodel of the kitchen and bathroom as well as stripping out the carpeting to hardwood floors and installing central air and a new furnace. I appraised in Aug 07 at 221,000 and then reappraised under VA in Sept 07 for 229,000. I dont know how that works either thats just what the appraisers have said.
to the poster about the va loan requiring 4 years the va website has this to say about it.

Q: Can I get a VA loan if I have had a bankruptcy in the last few years?

A: The fact you and/or your spouse have been adjudicated bankrupt does not in itself disqualify you for a VA home loan. The following rules apply:

If the bankruptcy was discharged more than 2 years ago, it may be disregarded
If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you and/or your spouse are a satisfactory credit risk unless both of the following requirements are met:
you and/or your spouse have reestablished satisfactory credit, and
the bankruptcy was caused by circumstances beyond your and/or your spouses control (such as unemployment, medical bills, etc.)
If the bankruptcy was discharged within the past 12 months, it will not generally be possible to determine that you and/or your spouse are satisfactory credit.

looks like 2 years?

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I have massive credit card debt. I don’t blame anyone but myself for this. However, the interest rates on the cards has gotten ridiculous. I have never missed a payment or been late, but my simple debt, meaning my debt to income ratio, precludes me from getting a normal loan or new credit card to which I could transfer some funds. All my cards are maxed out as well. Again, I could site the bad economy and poor job market, but ultimately I ran up this debt. The monthly bills for the CC’s alone represent a third of my pay. My debt to income ratio is 100%. Meaning that I make just enough money to pay my minimum payments. But at this rate, I will be paying my bills off forever. Are there any legitimate debt consolidation places out there that can help. My credit is extremely important to me, hence the reason I have never missed a payment or was late on one. I do not want to declare bankruptcy or do any kind of consolidation that puts a black mark on my credit. I own a home now, but because of the realestate crisis, I’m under water with that as well, so an equity line consolidation is out of the question. I don’t think that I am so out of the ordinary. I feel like I’m in the majority of americans suffering in this economy. So, can anyone help? Are there any hardship loans or consolidation services that actually help without hurting your credit score.
thanks

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I am recently divorced and the reason for my divorce was due to my wife obtaining numerous credit cards on line im my name, she then maxed them out and didn’t make payments on them. When I found out the cards existed the interest rates had went out of sight and late fees had became enormous. Due to the divorce and the credit card debt I turned the credit cards and one personal loan over to Consumer Credit Counseling Service. This is still a strain on my budget. I bring home 3,700 dollars a month and my total debt that I turned over to the credit counselors is now 18,700 dollars. After I pay my rent, child support (which is the mortgage on the house my x wife lives in), car payment, a home equity line payment, and other monthly bills I only have approximately 360 dollars left for groceries and gas, and other emergency expenses. Would I be a good candidate for bankruptcy, or does anyone know a better option?

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We have over 50.000$ Credit Card Debt.
1. Card I owe 26 K and my Interest rate is 7.9%
2. Card I owe 19K and interest rate 11.9%
3. Card I owe 5 K and interest rate 26.4%

I also have Car payments, house payment.

I don’t want to file Bankruptcy because I have Top Secret Clearance and I am not sure about Credit solution companies. I don’t know which one is better but they all seem like pretty much scam.

I own a house I am thinking about refinancing my home and add my debt in it. I am also searching for home equity loans and consolidation…

I will really appreciate any suggestions.

TIA

* 17 hours ago
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Additional Details

17 hours ago
I really appreciate all the answers coming!

I quit using credit cards last year, and I possibly cut everything I can.. But my my debt to income ratio is so high!!

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