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Got a question... What types of positive credit are Lending Tree mortgage lenders looking for? Many thanks for any comment. Another question on my mind: I've been lurking this board, reading everyones posts but I just cannot find someone with my situation so I figured I would post my scenario and see if someone can give me some light. I live in Texas, I have a home with just under a $1000 worth of equity, 2 car notes that are worth less than the payoff (brand new - no down payment) and no money in the bank living paycheck to paycheck. I also have about $32000 in c.c. debt.



MBNA: $9000.

Another MBNA - $4000.

1st USA - $6900.

AT&T - $5200.

Nextcard - $9200.

I have been paying on this but I cannot afford much over minimum so they just are not going down. I do not use them anymore and have not used them for the past year. They have gone done a mesely $2000. So I figure it is going to take me 10 years to pay these off. They all are at 17% or higher APR and were raised to those APR's after I got this far in debt and I can't get other cards now because I'm over extended and they will not lower them back down to the 10% that they were at. So I am basically tired of putting $850 a month and them not lowering much at all.

If I quit paying on them right now I can save $1000 each month in savings. So I figured I could have a descent sized nest egg after seven years if I get rid of these cards..

I want to know from the experienced ones around here what I will be getting myself into by letting them go..

Are lawsuits going to come or not necessarily?.

Will they try to settle with me before sueing?.

What are the odds I cang et them off my CR after being charged off in 180 days..

I just want to know all my options down the road. I don't want to file BK7 unless I have to. I figured if the heat gets put on me I could file then, but for now I should just wait it out and save up for settlements..

asked Mar 02 at 13:21

Pablo's gravatar image

Pablo
43


Hmm... I need to find out myself. I don't know what is the answer to your question. I'll do some research in Google and get back to you if I discover an good answer. You should email the people at Lending Tree as they probably could give you help..

answered Mar 02 at 14:45

Kimberly
's gravatar image

Kimberly
2927

How long have you been in the house? Could you be underestimating the equity in it?..

answered Mar 02 at 15:21

Byron's gravatar image

Byron
961

Hmmm. well you do have a few options..

!. Bankruptcy but I don't think they will let you file a 7 without a repayment plan..

2. Waiting it out. With the house it is likely they would file for judgement and wait for the sale of the property. This is likely the worse choice..

3. Continue paying as you are. Hope that your income improves. Is it possible to get a partime job?.

4. Form a repayment plan with CCS. They can eliminate some of the interest on the cards which will pay them off sooner..

Hopefully you will get other responses with more feedback. Best wishes in dealing with this...

answered Mar 02 at 16:39

Ricardo's gravatar image

Ricardo
837

I thought they couldn't sale my house because of Homestead Exemption? I have been in my house for two years and I've already looked into my equity and it is $1000..

I tried consolidating but no one will give my the loan. not even a second Lending Tree mortgage loan.. I'm too risky with all the debt I have. IMy icome will probably not improve.. I actually lost my job last January and got another one three months later making less than before.. (computer industtry).

Will the c.c. companies try to settle before sueing? hwoabout their lawyers, will they try to settle?..

answered Mar 02 at 17:24

Kevin's gravatar image

Kevin
1408

Chapter 7 is total liquidation 13 is the "repayment plan"..

TX has good consumer protection laws - your house is usually safe. BUT.

TX also has big brother 2nd Lending Tree mortgage laws - Combo of 1st and 2nd cannot exceed 80% of LTV, and I don't believe, you can have over 100% financing on a 1st -I may be wrong, been looking around for that one. Thats why I was wondering about only having $1000 equity after two years. Last RE magazine I received was reporting that while prices were stabilizing, they weren't declining. Maybe you live in a rural area?.

Who knows if any of the OC's will try to settle before filing suit. You have some pretty hefty balances to ignore. But, they can't garnish your wages in TX either...

answered Mar 02 at 18:52

Brodie's gravatar image

Brodie
4065

I bought my house on a FHA Lending Tree loan with 3% down which was covered by "the builder" so I only shelled out 1%. on my $116900 home which basically means the builder covered the closing cost.. the Lending Tree mortgage was $116900 and is now $115*** and the homes in my area sell for less then this because the new homes being built are for the same price and so people are buying new homes rather than buying the used ones.. so in realty this house can't be sold for what is owed on it.. I guess it has negative equity. :(.

Anyway, back to my problem.. so they can't garnish wages and they can't take my house or cars.. and I have nothing except a tv that I acutally own.. so if they did sue what would they get? I figured once they looked at me and saw I had nothing they wouldn't bother sueing..they would instead try to settle...

answered Mar 02 at 19:55

Gael's gravatar image

Gael
807

They could get a judgment that will trash your credit for years. You won't be able to buy another home without paying it + the interest that has accrued. And, I'm not sure about this, but I believe they can collect on the proceeds if you do sell...but check that one out. Maybe they will try to settle, but what if they expect it in a lump sum?.

The decisions you have to make are purely personal..

Credit Counseling - some have had good, some have had bad experiences with it. I used CCCS several years ago, and had good luck. One acct trashed my report, while others reported being in counseling and then removed that as soon as I paid..

Walking away - You have a lot of unknowns there, and probably months and months of people calling and harassing you for payment. If not years. Can you deal with it mentally?.

BK7 - From what I have read your CR is toast for at least a couple of years, and then gets slowly better. Minimal worries about someone collecting from you. But it is a very very personal decision to do that IMHO..

Staying like you are - Living by the skin of your teeth with no fallback like savings, or taking a second job to help out..

Nobody can really give you a cookie cutter what is best answer, but I truly do wish you good luck...

answered Mar 02 at 21:05

Melissa
's gravatar image

Melissa
3089

I think I am going to try this:.

Go without paying for a few months then closer to 180 days try negotiations with them. and settle. In that time I could have saved some cash and have a good chunk to throw at them.. the ones with the lower totals I will let get charged off then try settling as I save more up...

If this fails what is the worst thing that can happen? I have judgement placed on me?..

answered Mar 02 at 21:23

Kinley
's gravatar image

Kinley
658

Remember during those 180 days they will probably charge late fees and over the limit fees, as well as interest. So you will need to add that into the equation..

A judgment is pretty bad...

answered Mar 02 at 23:00

Chase's gravatar image

Chase
1612

Yeah I know.. is there a way to get them to stop all interest.. like call them and tell them to close the account and stop interest because I cannot afford to pay this debt off anymore...

How would they react?..

answered Mar 03 at 00:24

Xander's gravatar image

Xander
1514

Laugh at you?.

Seriously - hubby lost his job. We tried to negotiate special temporary terms to stay on track. Zero, zilch, nada would work with us because at the time I was current..

It wasn't until they had racked up a few months of lates and over the limits, and uncontrolled interest, that A COUPLE worked with me. By then the damage to my credit, go to interest rate, etc. was absolutely destroyed. We are climbing out of the hole, but it is costing us dearly. We actually contemplated BK, but it was DH's personal thought that he really couldn't do it...

answered Mar 03 at 01:42

Sage
's gravatar image

Sage
155

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