Mortgage Forum

Mike

I'm trying to figure out the best thing to do for our situation. We are in bad shape financially now. We got 2 months behind on our house payments, and are currently in a repayment plan. I only agreed to the repayment plan out of desperation, in hopes that I could get money out of my 401K to get us caught up. However, it looks like that might not be an option now. My mortgage payments are normally $1200, but they are going to be $1700 until August, as per the repayment plan. Also, our credit cards are maxed and are at high intrest rates. We are also behind on almost all payments (including andquot;regularandquot; bills). We also have a loan out for $7,000 that I got due to maternity leave. Those payments are $240/month and are currently current, because they come out automatically. Our bank account got extremely bad last week, as it was approx. negative ~$2100. It's now back on the positive side, but there is only about $75 in the account now, and we don't get paid for another 2 weeks. I'm hoping to get the tax stimulus payment ASAP so we can surrive for a little while, and make some payments on bills. I'm not really sure what the best thing would be to help us get out of this situation. We currently owe more on our home that we could sell it for. Plus, it's a condo, and those are not selling right now. Our neighbor has had hers on the market for over 1 1/2 years, with no luck. Also, our loan is a VA loan. I wouldn't mind giving up the condo. My thought would be to rent something that costs less, so we can build our credit back up. Or will our credit be so ruined that it wouldn't matter anyway? Any suggestions would be greatly appreciated.