Legal Question in Real Estate Law in Virginia

2 Mortgage and 1 line of credit Problem

I have lost my job 4 months ago, and can't afford the payments anymore, I had a line of credit also on same property, which I have maxed out by making the $5000 mortgage payments so far, I owe $470k on my townhouse, and my next door sold for $180k, my current income is $1600 from unemplyment insurance, and my wife earns $900 monthly. I just don't know what options are Available to me. I have a 1st mortgage in the amount of $200k, 2nd $135k, and a line of credit in the amount of $135K. Should I walk way, short sale, etc.


Asked on 12/09/08, 5:08 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: 2 Mortgage and 1 line of credit Problem

You may want to consider filing Chapter 13 bankruptcy and stripping off the line of credit and possibly the 2nd. Depending on the value of the house you may be able to get rid of both of them upon successful completion of a Chapter 13 plan. We would be glad to discuss this possibility with you, and to represent you should you decide to proceed. Feel free to contact me at the email address below.

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Answered on 12/09/08, 5:48 pm


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