What should I do if I cannot afford my house payments? 11 Answers as of March 11, 2011

i bought a house i can not afford. I thought there would be help paying bills but that did not work out. Now I need to know my options.

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Law Offices of Geoffrey Nwosu
Law Offices of Geoffrey Nwosu | Geoffrey Nwosu
You have limited options if you do not have enough income to pay your mortgage. First, will be to modify your loan and get a lower payment that you can afford. Second, is to consult with a bankruptcy lawyer to see if filing chapter 7 or chapter 13 bankruptcy will help your financial situation. Third, Reaffirmation may also be an option if you are filing chapter 7 bankruptcy if you are ablle to eliminate your unsecured debts.
Answer Applies to: California
Replied: 3/11/2011
David R. Fondren, Attorney at Law
David R. Fondren, Attorney at Law | David R. Fondren
refinance at a lower interest rate, take in a roommate or boarders, rent it out, sell it, surrender it in bankruptcy, allow a foreclosure and see if there is a deficiency, do either a short sale or deed in lieu of foreclosure, but beware of the 1099 and income tax issues.
Answer Applies to: Missouri
Replied: 3/8/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
You can stop paying and let them foreclose or try to sell the house. Bankruptcy may benefit you depending on whether you would have any deficiency after foreclosure, and depending on the value of the house and amount of your liens. You should consult with a bankruptcy attorney in your area for more details.
Answer Applies to: California
Replied: 3/8/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Your options are (1) negotiate with your lender to stretch out the payments to get it to something you can afford. This usually means modifying the loan to a longer period and a lower interest rate, or (2) sell the house. This may involve a "short sale" where the house is sold for less than you owe on it. If you do that then you may remain liable for the difference between the loan and the sale price, and if you do not then you may become liable for income tax on the difference, because of the IRS "forgiveness of debt" doctrine. In that case you will probably want to file bankruptcy as part of the sale, because there is an exemption to the doctrine if one is bankruptcy. Bankruptcy is of little help when the asset in trouble is your residence, since the bankruptcy court does not have the power to modify the loan in any way.
Answer Applies to: California
Replied: 3/8/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
Bankruptcy or find a buyer for your house.
Answer Applies to: Alabama
Replied: 3/7/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    Your options are to sell the house, rent the house out, apply for a loan modification or refinance, allow the house to be foreclosed on, or in some circumstances, filing for bankruptcy can modify your loan.
    Answer Applies to: California
    Replied: 3/7/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You can just stop paying and let the bank foreclose or try to sell the house. If you owe more that what the house is worth then you need to do a short sale if possible. If you have two mortgages and lose your home to foreclosure then you may continue to owe the second loan in some cases and may have to settle that debt if you have enough cash or file a bankruptcy case.
    Answer Applies to: California
    Replied: 3/7/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Modify loan, rent outhouse, short-sell or regular sell,file BK to name a few options. Thank you.
    Answer Applies to: California
    Replied: 3/7/2011
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    You have many options, depending on whether you want to keep the home. Give me a call and we can set up a free consultation, if you are in WA St.
    Answer Applies to: Washington
    Replied: 3/7/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    Sell it, sell it short, let the lender foreclose, or negotiate a deed in lieu of foreclosure.
    Answer Applies to: California
    Replied: 3/7/2011
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