There are times when debts can deal with themselves. In many states, you can’t be sued by the company for the difference between your loan and the value of your property. This is what we call deficiency. Now if you can’t get sued for deficiency, you can’t really be driven into bankruptcy just because of foreclosure.

There are a lot of debtors who, aside from their mortgage, are otherwise in good financial status. They can even avoid bankruptcy if they walk away from their mortgage. You have to be careful about using Chapter 7 as a remedy, since it is only every 8 years that you can invoke this to discharge you from your debts.
if you do not have that big a debt and you have enough cash, better pay off your credit card debts. You can even avail of discounts when you do this. But again, always be on the lookout for hoax debt-settlement packages.
The main point is that you don’t have to file for bankruptcy when you are in the brink of foreclosure. If you’re not facing deficiency judgment, take a look at alternatives before you consider filing.

If this couple is a pair of “strong” christians as they claim, they need to repent to God of their covetousness that the Bible calls idolatry. Sounds like they have reaped what they have sown and need the power of God to blow them out of their sin.

Not trying to be harsh.

Thanks Robert.

This is quite difficult situation but many Christians emerged victorious from similar situations in their lives.

With God nothing is impossible.

Jose

How much are the homes worth? What do you owe? what type of mortgages do you have?

Assuming these facts were omitted because the info is not pretty, you probably need to let go of the Real Estate. You should also probably try to liquidate as many of your assets as you can. Furniture, Electronics, Clothes, etc. Keep only the tings that matter. Pictures of your kids, That handmade pottery your daughter made, etc. If it has memories and is too big, Take lots of pictures of it and give it to a relative. You need to get to the bottom as painlessly and as quickly as you can. The longer you drag it on, the more pain & stress you have to deal with.

Simplifying your life is a process, and a good one. Forget about the stuff, get on firm financial footing and learn the lesson.

This could be the best thing that ever happened to you.

-WR

The quickest things to do are:

1. Call your creditors for the unsecured loans, tell them your situation, and ask them about options. Otherwise, they won’t be getting paid their money! It’s important to them to help you out.

2. Increase your rent on the rental house. Consider renting out rooms in your primary home.

3. I agree with everyone else. In your situation, there is no reason for 2 cars. Get rid of one of them; hopefully, for at least what you owe.

4. If you have a house, I’d assume that you have stuff in that house. Sell it all. You don’t need a couch, a TV, a DVD player, a kitchen table, a microwave… you don’t even *NEED* a bed, per se. Sell it all.

5. Talk with the student loan providers. Same thing as the creditors: Tell them your situation and see what they can work out.

Here’re some longer term things to do:

1. Sell both houses. I know you said this is difficult… but you may have to take a hit. Undervalue your house, if you have to. I wouldn’t bother with renting an apartment (once these two houses sell). Move in with a friend or family.

2. Get second and third jobs for both of you! I understand you have a medical condition and that might limit some things you can do. But it doesn’t limit everything you can do.

A very important aspect to this is to know you are not alone. You are part of a body of believers. Ask your church friends to pray for you. Other people have been through similar experiences. Pray with your husband and keep commuication open. Rough times draw you together and mature you like nothing else. Well intentioned people may give advice you can’t follow, maybe some of this in my note won’t work for you, but as you seek to be faithful to Christ and honor him in what you do, He does direct your paths.

Julianna, you can definitely earn money… even if you have health trouble. Like Fernwise said, one way to earn more is to start and monetize a blog about your Debt Free Adventure.

But some agents are making a living, even a good living still, and some aren’t. What ideas do we have to help him become an agent earning a good living? Especially ideas that Julianna might be able to help with even with health issues.

What things are the most successful agents in his area doing that he is not? What do their agencies’ web pages look like? Are they using PPC (pay per click) and/or banner ads on Google? Are they hooked into Google in a way that they come up when locals look for real estate pros? Where are their links going to and coming from? Do they have their own blogs to get business and links? Are they doing more open houses? Are they giving seminars on how to buy homes in this market?

They might want to check out sites like MarketingExperiments.com and read their FREE articles on marketing and use what they can from that (I haven’t a paid membership there, and get a lot of ideas from them).

I’ve also heard that some folks have had success starting and monitizing blogs that chronicle how they get out of debt….. [grin]

Julianna: can you give us more information as to how the two of you let this happen? Was your situation caused mostly by genuine misfortune or irresponsibility?