Are you behind in mortgage payments? Your financial life and world spinning out of control? Are you overwhelmed by all your debts? You should check out all your options. Go see a debt counselor and go see a bankruptcy attorney. Tell them both that you are seeing the other one before you make a decision what to do. Bankruptcy would be the easiest way to start over and get back on your financial feet. Yes, it will take time to get your credit scores back and you will not be able to buy a car or get credit cards for a few years. You need to make a plan to be sure you are covered in those aspects.
If you let your home go into foreclosure you will not be liable to the mortgage payments any longer, but the bank may send you a 1099 for the money they forgive. Can you afford to pay the extra taxes. You may also want to see your tax person to see the consequences of getting a 1099.
The other option with the debt counselor: Can you make the payments they set up? They will most likely negotiate with your creditors to get a lower balance and lower interest rate. Remember as soon as you sign up with the debt counselor and they negotiate with your creditors it will show up on your credit report. A debt counselar is a negative to lenders. Remember why would they loan you more money if you need a debt counselor to pay the debt you have.
What ever you do, explore your choices. Then make a sound decision on what you can do. The sooner you start the sooner you get back on the path of good credit. For more on credit scores, and Michigan mortgages go to my website www.RussRavary.com
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