I need to bail on my house help!

Question

i am 25,live in southern nh. when i bought my home everything was fine plenty of work and money.then i got laid of for six months and when my employer took me back it has only been part time.by the way i am a heavy equipment operator and have been with the same employer for 7 years.i have picked up a second part time job in the same Field but way less money.i cant find full time work and if i did the pay would not be as high, trust me i have been looking.i have no money and borrow money every month to make up the difference from family just to cover my bills.i am at the point i have not gone food shopping for 3 months. i have to go to my moms for dinner.this is just one example, i need some help bad.my quality of life is really bad.i know your thinking well you should not of bought a house dumb ***.i agree,but at the time the money was there and like i said been with the same employer for 7 years and was working my way to the top of the company.i had alot in the bank also but drained that when i got laid off.someone please give me some advice....thank you

Answer 1

I would suggest a few options. 1)  Consumer credit counseling.  They will take your income and negotiate with your creditors to lower your payments. 2)  Rent your home.  You can always rent your house out.  Just make sure you screen the renters and get renters loss insurance through your homeowners insurance policy. 3) call your mortgage company to see if they have a program that will help lower your monthly payment. 4)  if all else fails the last resort would be to file chapter 7 or 13 bankruptcy.  In any case good luck.

Answer 2

If you have built up some equity in your house, you can re-ammortize it over the 25-30 years again.  I'm sure that didn't make any sense, so here is what i mean.

If you took out a mortgage for $200k 5 years ago, and now your principal balance is now $170k -- you can amortize that mortgage out over 25 years again.  It means it will take longer to pay off your house, but your payment will be lower, the bank will make more interest, you keep your house,  everyone wins!  We reduced our payment from $1700 to $1000 so that we could afford to buy another house.

Alternatively, rent out the house and rent a room somewhere.  Live well below your means for a while until youo can get back on track.  Don't gamble with your credit rating -- a bad credit rating will just cause you problems later.

Answer 3

When this happened to my friend we sent a letter to his bank suggesting : his current mortgage of $236,000 be reduced to $150,000 with lowered payments.  He would owe them the missing $86,000 for 10 years at no interest.  He would owe them the entire $86,000 if he sold the house or refinanced.  They said no.  They offered for him to have 6 months of no payments and add those payments to the end of the loan.  He said no.  They just called and said no payments 6 months and they said yes. He is happy but worried about the future./

Answer 4

have you tried talking to your lender? Many people don't do that and many times something can be negotiated.

Also there are many credit help organizations that could help you. Don't use and out of state or internet company for this. There are non-profit ones I am sure in your area that will help determine all options available to you.

Here is one address and phone number in NH.  

To schedule an appointment with CCCS, 1-866-889-9347

Portsmouth Northeast Credit Union

100 Borthwick Ave.

Porthsmouth, NH 03802