Should we stop paying mortgage? 4 Answers as of March 03, 2014

Our credit is bad 520 score due to loss of income. Decline in available work hours. We are 2 months behind with house payments. We owe $349,000 on our mortgage. Homes equivalent to ours are going for $300,000. Should we save money and save for a down payment on a home a pay off $10,000 in debt?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Danville Law Group | Scott Jordan
I suggest you speak with a bankruptcy attorney in your area. You need to go through all of your debt and help in deciding how you are going to tackle the problems.
Answer Applies to: California
Replied: 3/3/2014
Stacy Joel Safion, Esq.
Stacy Joel Safion, Esq. | Stacy Joel Safion
If you want to buy a home you will need to short sell the one you got. On the other hand your credit score is too low to obtain a loan for a new house. Additionally if you cannot afford this home, how can you afford a new home?
Answer Applies to: California
Replied: 2/28/2014
Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
I think you should speak with a bankruptcy attorney who can advise you about the best way to handle your current situation. You have some options and an attorney can explain all those to you plus the tax consequences of a foreclosure.
Answer Applies to: Arkansas
Replied: 2/28/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Your not going to have the credit to buy a new home I would file a bankruptcy to get rid of the debt and liability for the house. Defend the home in foreclosure lawsuit for a few years (retain foreclosure attorney) and save your money for a new home in a few years. Between the bankruptcy and the foreclosure defense, we would keep you in your home for at least 3 years if not more. That should allow you to save a reasonable amount of money.
Answer Applies to: New York
Replied: 2/28/2014
Click to View More Answers: