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Need Refi No Luck So Far
I need to file Chapter 7 bankruptcy and also refinance, during my bankruptcy consultation with either an interviewer or paralegal, I was told that I did not qualify because I have too much home equity. I stated the last county tax value for the home when asked. I could never sell the home for the tax value amount.
Should I get a Realtor for a market value of the home or an appraisal? I cannot afford to pay an appraiser. I feel a market value of the home for the bankruptcy is more realistic than an appraisal.
There are no comps in the area because the house is overbuilt for the neighborhood.
I added a handicapped addition, two car garage, and accessible features for my 77 year old mother.
She could no longer climb the steps to get inside the house. The walk from the drive to a door was 30 feet or so. If there was bad weather, she could not get from the car to the house safely.
A ramp would be too big and long to comply with ADA guidelines. The solution was an electric lift,
so an oversized garage was added to the home. This allowed for her to safely enter/exit vehicles in the garage out of the weather as well as a dry space to install the lift. A new master bedroom was added with wider doorways and to accomodate a hospital bed if necessary. The old master bath was enlarged and made handicapped accessible. I also will need the handicap features in the future due to my medical issues. I paid cash for the addition using retirement funds. I considered the addition to be a good investment as well as giving me the ability to keep my mother at home and out of a nursing home. It also gave us the ability to stay near other family. I was told that I could file Chapter 13 but would have to pay the creditors back 100%. My monthly income at this point barely covers the mortgage, utilities, and living expenses. It will not allow repayment of debts and I can't get a home equity loan in my current situation. My credit was excellent up to November 2013. I am on disability and have been mentally and physically ill for a long time. During my illness I could not keep up with or control my spending habits. The gravity and urgency of my situation did not register.
By the time I was getting better, it was too late for my finances. I tried to put the brakes on spending but when I "woke up" my retirement funds were gone. If I can get the creditors off my back
and catch up my past due mortgage, I feel that I will be alright. Hopefully I can also find a way to refinance my mortgage to a lower monthly payment. I just got my first foreclosure notice. I was very sick the last few months. There were charges sent to my checking acct that I forgot about.
The charges made me short on my mortgage payments. I need 3Gs to catch up and they will not accept partial payments. If I can catch up my mortgage and get bankruptcy I will be alright.
I don't qualify for HAMP, HARP, etc and can't get a home equity loan because my credit score took a nose dive since November and my LTV is stratospheric.
What do I do regarding:
1) Bankruptcy - Home Equity Do I need to report the value of the home as the tax value, market value, or appraisal?
2) Refinance - Any body have any suggestions. Foreclosure is not an option because if it goes there I lose equity. The mortgage company is only going to try and recoup what they are owed. I don't want to sell either at this time until the market improves. If I can wait until the market improves, I will have more equity for something else. Also there are many homes in my neighborhood, for sale, in foreclosure, or in short sale. This devalues my home. The home is also perfect for mom and I with the accessible features and closeness to other family. Irregardless of refinancing, If I can catch up the past due mortgage and get the bankruptcy, I will be alright. I am more mentally able to monitor my finances and find solutions to bridge the financial gap in regards to monthly income vs monthly expenses. I am willing to rent a room that will help tremendously.

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