Easy Home Equity Loan

My mom has a home that she bought in 1997. She bought it for 81K and now it is worth about 350K. (It was built in 1991 and we are in southern California.)

She paid off the house back in 2004-just after her husband died she collected the 100K from the life insurnace policy. She is making about .60 an hour-full time-and now she will be bringing home less since her employer is going to take out about a month for health benefits. She only made around 17K last year.
She is about 4 or 5K in credit card debt. Since her husband passed in 2004, she has paid down the credit card debt a lot from 7 or 8K – (most of the money came from the left over amount after paying the house off) but she is still struggling to pay all of her bills.

If my parents had not had the life insurance + if my mom had to pay the mortagage (0.00 month) we would be living on the street now. There is no way she could afford that on her income. Is it worth it getting a home loan for 5K or 6K?
My mom has the ’99 truck (it was dad’s) and it is running and that truck is paid off. Her car a ’99-not running is also paid off. I already asked her if she wanted to rent the room out-she would rather not with her 3 little doggies. They would bark too much.

I thought that interest payments would be lower than credit cards. She is paying 22% of one of her credit cards. that is crazy! I will show this to her tomorrow. Thank you all! If I could I would give you all best answer!

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My home loan is in my husband name my husband died in 2007, I never Transfert the loan into my name. The property is in my name only,
Husband signed over title to the house in my name before he died
There are no liens on the property

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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 a home loan of 14lakhs from a bank on my property. My property value is approximately 40 lakhs. I would like to avail a second mortgage of 5 lakhs from a diff bank or the same bank. Is there an option like that ? If yes, can any of you let me know the process ? I am from kerala, India.

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Which word describes what you exchange for money when you negotiate a secured debt with a lender?

       collateral
       credit report
       principal
       interest

Which word describes the decrease in value of an asset over time?

       financing
       equity
       leasing
       depreciation

. What will a bank do if you default on a car loan?

       foreclose on the car
       refinance the car
       repossess the car
       depreciate the car

Why do lenders often charge more interest for a car loan than a home loan?

       because you could crash the car
       the car could be stolen during the loan
       cars can be moved to from one location to another
       all of the above

 What can a bank do if your credit score goes down significantly and you miss a car or home loan payment?

       foreclose on your home
       require the car loan to be paid-in-full
       increase interest rates
       all of the above

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1. Which type of debt is the least attractive for a consumer? (1 point)
unsecured debt
secured debt
mortgage debt
lease debt
2. Secured debt means a lender gives you money in exchange for what?
(1 point)
collateral
credit report
principal
interest
3. When an asset, such as a car, decreases in value over time what is it called? (1 point)
financing
equity
leasing
depreciation
4. When you lease a car, you build equity while making monthly payments. (1 point)
True
False
5. If the bank decides you’ve defaulted on a car loan, what will they do? (1 point)
foreclose on the car
refinance the car
repossess the car
depreciate the car
6. Why do lenders often charge more interest for a car loan than a home loan? (1 point)
because you could crash the car
the car could be stolen during the loan
cars can be moved to annother location
all of the above
7. Secured debt allows you to refinance the loan to get money (equity) out in the event of an emergency. (1 point)
True
False
8. Credit cards are considered unsecured debt. (1 point)
True
False
9. If your credit score goes down significantly and you miss a car or home loan payment what could the bank do? (1 point)
foreclose on your home
require the car loan to be paid-in-full
increase interest rates
all of the above
none of the above
10. When you buy an off-lease used car, you can buy the same warranties you would get if you purchased the car new. (1 point)
True
False

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we bought our first home in PA, instead of having a traditional home loan of fixed rate for 15%, we took out a loan called HOME EQUITY, 15 years fixed at 5.74%. the monthly payment is 65 (principle & interest only).
We pay property tax & home owner insurance separately; it is 6 per month. Only my husband works, his monthly paycheck is about 00 before taxes.

As of now, our loan payment plus property tax & home owner insurance total is 71 per month.

Are we qualify for loan modification? How do we apply?

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I have approx. 40K between 4 credit cards that I had before I was married. These credit cards are in my name only, not my husband’s. I have always paid my debts on time and have never been late until the past few months. I am now past due 30-60 days and now owe late fees and over the limit fees and can’t even afford the minimum payments any longer. I have been basically sticking my head in the sand about my financial situation for almost 2 years and borrowing from Peter to pay Paul.

My husband and I jointly have a home loan with a balance of 92K and a home equity loan with a balance of 30K. Our home is worth about 120K so we have no equity. We are current and have never been late on our mortgage loans. We live in Indiana.
My husband has a car loan in his name only. It is current and have never been paid late.
My husband has 2 credit cards with a balance of 11K. These are current and have never been paid late.

I now only work part-time making approx. 0-400 gross per month. I am trying to also substitute teach to make more money.
My husband works full-time and this is how we afford to make our mortgage payment, car payments and his credit card payments on time. We are trying our best to make certain his credit stays good.
My husband has a credit score above 680. I believe mine was 640 until the last few months – now I am sure mine is terrible due to my lack of payments.

I am looking for advice. I have tried to negotiate with my credit card companies and offered to send as much as I can until I can find a higher paying job/more hours. However, they are not agreeing to this and won’t stop the fees/high interest rates from accumulating. I almost feel like it is pointless to send anything because my balance just gets higher after sending a payment.

I definitely want to pay my obligations. I have looked into credit counseling but until I have more income, I can’t afford to make the kind of payments that is required. One counselor suggested that I file bankruptcy individually but I don’t know if that is a real option since I am married. My husband’s credit is perfect and I don’t want to risk his credit.

If I can/should file bankruptcy as my only option, can I still pay back my debt – just on my own terms that I can afford?

If I don’t pay my credit cards, what will happen? Can they take my house or affect my husband’s credit? If they sue me, will the court allow me to make payments that I can afford?

I know this is a lot of information and questions. I truly appreciate your help!!! The stress of this is killing me. I am so tired of worrying.
I have twins so it is tearing me apart to have to put them in daycare in order to work full-time until they are a bit older. Plus, by the time I pay for daycare it’s hardly worth it.
Marq suggests ignoring the calls, etc. But won’t the credit card companies sue me and then I’ll even owe more? If they do sue me, can I get my house?

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