I am just curious.  What happens when you just stop paying for your primary mortgage, your second mortgage and your Home Equilty lines of credit?

Obviously, you get kicked out on the street and your credit goes in the toilet but what else?  (As if that is not bad enough).  But what else happens. 

Do you end up in debtors prison?  ;-)  Or do they garnish your wages for the rest of your life for the Heloc?  What happens?

I don't know for sure, but I imagine just your credit is trashed. That's sounds like a small thing, but it will have big consequences. You won't be able to rent anywhere that checks credit, and rentals are getting scarce in some areas anyway because of the number of foreclosures so if you do find somewhere to rent it might be expensive. But basically anything where your credit is checked is going to get difficult and/or expensive (think car insurance and applying for a job, for example). And it won't be short-term pain. It will stay on your record for at least 7 years. If there's any other way, I wouldn't go that route.

Jill

 What if you can't pay your mortgage?

 Dave Ramsey on Foreclosure

 DMC, This type of question is very scary for me to hear.  (Yes, it's all about me!)  Are things becoming that dire?  My gut is telling me that it is.

Could your DD's dad help with parenting so that you could find at least a seasonal postition?  Can you pick up any other work with your computer business?  Can you babysit to generate some income?

Is there anything to sell to generate some income?  As a last resort could you "sell" blood or plasma?

I hope that I'm wrong with this, but your question does scare me.

Thanks for the link Brandy.

Don't worry Striving, its not gonna happen.  I am too proud.  I just pulled 200.00 more out of deferred comp and put it back in my wallet a month.  I can afford it, but it is ALL just a heavy burden at times, ya know?

Single mom, mountain of debt, old condo... etc, etc.  Needs/Wants.

Once I get some debt paid down I will feel less soficated by it all.  There are just daze when I truely feel like throwing in the towel.  Today I wondered what would that look like... that's all.

I'm good.  Just wish I had a  little less burden than I do.  With acouple hundred more in my pocket, I can pay off stuff more quickly.  JC Penny watch out!

dmc_2008:

There are just daze when I truely feel like throwing in the towel.  Today I wondered what would that look like... that's all.

 You are welcome for the link.

I understand the days where it just feels like it's too much to deal with.  Hang in there.

I am dealing with this also. My realtor friend told me I am better off waiting for the market to rebound and then sell it. If I have a short sale now (where I sell for less than whats owed) the bank could possibly still go after me for the balance. If I walk away i will have 12 months before being evicted at which time I will have to rent for 5 years before getting another home loan. Right now my credit rating is 788. If we just have this 'hiccup' in our credit history it may not be as bad as some others.

Our plan if things get tight and dh loses his job is to walk away from our property. No sense paying on a dead horse.

 Hi ... Hubby and I just went through this - call your mortgage company and see if they offer a 'hardship' plan or other option before ever considering walking-away. Can you refinance the loan with current company? Can you refinance elsewhere?

We took the plan, but at the end of the six-months, they would not renew another hardship. Our company did not recognize the President's plan for affordable housing or Government asistance. They would have rather taken the loss then help us.

We lived in the home for about another six-months, without a payment, until they delivered the sales-notice.

Within sixty-days, the house was sold for just $50,000.00. We had fifteen-days to fully vacate before the new owner took over. Thankfully, we saved money during this time, passed a rental company credit check and now rent for half of what our mortgatge payment was.

Due to my illness and not working, and the adjustable rates increase, we had no other choice. As for the long-run complications, we will have to wait and see what happens ... many people have had this happen, make due, move forward and live their lives.

The credit report will show a forclosure and will take about 200 points from my previous excellent rating and will 'ding' my credit for a while - with a $10,000 bond from my mother, we will begin bidding on another forclosed home after the holidays. Condo's in my area have been selling for less than $8,000.00.

Overall, this was the right decision for us because we had no other option and the company could not offer any help. Because of a death in my mother's distant family, she is now able to assist us after the new year. 

Only the best wishes to other in this situation - it is not easy to let go but the stress-level and demands have greatly decreased and my ulcer is finally healing. 

KB, thanks for sharing your story!  I am glad it worked out for you and your DH.  Are you still in AZ?  Condos are going for 8,000 or 80,000?  Was that a typo?  Wow!

yes thanks kb for sharing your experience! That took the mystery out of it.

Our bank does not recognize the president's plans either. But they aren't the only game in town. We have been unhappy with our Chase mortgage and would rather refi with someone else.

Yes we need a mortgage almost half what we are paying. I don't think that will happen, at least not with this house.