Can I pay off an EQUITY loan with an unsecured loan prior to filing bankruptcy?
We got a home equity loan in June to consolidate credit card bills, another home equity line, and small construction loan. Things were fine until I was recently diagnosed with multiple sclerosis and declared disabled. I receive social security, which is currently one-half of my former salary, but only until my children graduate when it will drop to one-third. We now realize that we cannot pay for my graduate school loan (simple bank loan-not federal), the car loan, the equity loan, AND the home first mortgage. We can pay for a cheaper car and the first mortgage for the home, but not the equity loan too. Can I put SOME not all of the equity loan onto my unsecured loan to “pay it down” so that when we file bankruptcy we can afford to keep our home?
I’ve been married for 8 mo. now. I filed bankruptcy in 2005 & it will be two years old in Nov. 2007. My credit score is 638. I met with a mortgage broker & was told that if I get a mortgage now, it will be 10% down & 10% interest rate. If I wait until Nov., I was told I could get no money down & a 6% interest rate. I want to wait, but my husband has found a home that we have absolutely fallen in love with. My husband will be declaring bankruptcy for debts prior to our marriage within a month. Will I still get qualified for a loan now or in Nov., or will I have to wait until his bankruptcy is discharged or two yrs. old first? We have another broker saying he’ll qualify my husband as a first-time homebuyer, regardless of his credit, & add me as a co-borrower. I’ve owned a home in the past that never defaulted or went into foreclosure. We currently pay $ 675/mo. for a place we’ll never own. We own our vehicles & no debt expenses other than utilities, neccessities, & insurance.