going threw some rough times in florida

**vanessa_k** · 04-12-2008, 11:31 AM

I live in south florida where alot of people are going threw some rough times.
My question is I owe 310,000 on my first and 42,000 on my second for a total of 352,000.
My payment is 2300.00 a month for the first and 400.00 for the second,2700.00 month.
The home is worth $300.00.
I can no longer afford these payments,if I walk away from both mortages I no it will damage my credit.
I don't have that many options right now,what can I except to happen from both creditors.
If I go bankrupt will I still have to pay them back.I have worked so hard keeping my credit good and making my payments on time and was hoping for something to happen in the market but it just keeps droping and it's just to much for me.
Appreciate any help if anyone has the same problems or someone with experience in this field.
THANK'S VANESSA

**HHI Golf Guy** · 04-12-2008, 08:00 PM

If you walk away you will still be in bad shape. If your crdit score tanks not only will it make it very hard for you to get credit in the future, it could also impact your current finances.

If you have any credit card debt, you can expect your interest rate to jump to the max (28%). In some states your car insurance rates can increase because of bad credit. If you decide to rent a home or apartment it will be that much tougher to find housing. Many employers now check credit scores, and it could make it that much tougher to find a job if you change jobs or relocate.

The good news is that the bank does not want your home, especially in lieu of the current mortgage crisis. Have you exhausted all possibilities with your bank on restructuring your mortgage? Can you rent your home and break even (or come close) or take in a boarder (maybe even family members)? For example, if you can rent the home for $2k a month and downsize yourself to an apartment for $1k a month you might be able to still make the mortgage. What about taking a second (or even third) job?

I don't envy your situation, but walking away or declaring bankruptcy is not a good answer. All you will be doing is trading one problem for another.

**Codythebest** · 04-13-2008, 06:38 AM

I agree. First thing would be to talk to the bank. Try to negociate something. You may end up with some kind of payment, at least for a while and save some time...

**TomAnto** · 04-13-2008, 01:58 PM

The important question is whether or not you know who is servicing the mortgage. That is who you need to talk to, hopefully it is still in the hands of someone who can help you in a work out situation. This will take a lot of effort on your part. Start with the institution that you pay your mortgage to.