We’re in a real financial bind, what’s the best option? PLEASE help?

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OK, here goes…my husband and I have made a couple of BIG financial mistakes. The biggest one is that we bought a company with no reserve in the bank. As a result, we have lived off of credit (stupid, stupid, stupid). Work has taken a lot longer to pick up than was anticipated. We have 4 houses that are leased- 2 of them have payments that don’t even cover the mortgage. We have a home with a 1st and 2nd mortgage, a car that we owe $ 8000 on that is worth $ 9000 and needs $ 1500 worth of work. We have a business loan of $ 250000, $ 80000 in unsecured debt, and cobra coverage that ends in 2 months. There is now a lot of work but $ 20000/ month doesn’t cover everything. We have 4 small children- two which are 3 month old twins. I’m so tired and stressed! I’ve read up on bankruptcy, credit counseling, and debt consolidation…what else is there? I’m desperate.
the way the market is right now, on the two homes that aren’t coming out of our pockets, we wouldn’t make anything- we’d lose because of closing costs. The other two houses have another year to avoid a prepayment penalty.
Right or wrong car, it’s what I have. I can’t sell a vehicle that doesn’t run for what is owed…obviously, there is no money left to buy a different vehicle (especially one that fits our family).

  1. Reply
    James M
    May 18, 2011 at 11:28 am

    No one wants your property. That s the first thing that comes to mind. Sounds like your first business venture. Dont panic, its pretty much what nearly everyone goes thru.

    Immediately contact your mortgage company and arrange for different lesser payments and a longer term. 50 years is now possible

    On the business loan, get your best business plan together and contact the lender. Review with them the options, they will surely extend your time alloted for payments.

    I dont see much else to do. And frankly, you arent in all that bad a positon growing a business takes time and energy and SACRIFICE.

    You have a lot of positive going here so keep at it.

  2. Reply
    May 18, 2011 at 12:23 pm

    Do you have a financial advisor? I would suggest selling one or two of the homes or/and raising rent for the tenants…Why would you have them pay less than the mortgage?
    For the insurance try and get a individual family plan from BCBS, UNICARE, CIGNA, Etc…. You usually can save money there (I use to work for insurance and would suggest that some COBRA people went to individual for same coverage for less)

  3. Reply
    May 18, 2011 at 12:26 pm

    Spread too thin. Sell a house. No car is worth $ 9,000. It is valued at something, but that is often a thing that is open to negotiation. If you cannot fix the car with the tools that you own, it is the wrong car.
    Get out of debt and get your sanity back. Sell a house or two, or three.

  4. Reply
    1Smart Blonde
    May 18, 2011 at 1:16 pm

    Its actually not a great time to be selling a house so if I could I would hold onto them as for your other debt I think a credit counseling agency may be good for you if they can get your overall monthly debt lowered so that you can afford to make the payments the principle will begin to come down on your loans and your stress level will lower since you yourself do not have to deal with the bank.

    Health insurance is available at many auto insurance providers, if you have Statefarm or Allstate, Nationwide call and ask about health insurance – you will likely get discounts because you have your auto and possible home owners insurance with the company, also look in your phone book for insurance broker’s they can help you get the right insurance for your family.

    I hope things work out for you and your family….

  5. Reply
    May 18, 2011 at 1:18 pm

    Sell all 4 houses and the car. Even if you have to borrow to pay off the loans, you will still have less debt (read smaller payments) than you have now. If you show the the lenders they have a choice between letting you sell for whatever you can get and financing the difference or paying foreclosing costs and trying to collect the difference you can’t pay, they will go along. After all if you can’t pay either way, they may as well save the cost of foreclosing. If you go bankrupt, you will lose the 4 houses and possible the car anyway.

  6. Reply
    Mr Chris Peters
    May 18, 2011 at 1:33 pm

    Hello there, I am Mr chris peter.A legit loan lender.Are you into debts? Do you have a bad credit?Are you financialy down.I give out loans at low interest rate of 3%.I give out loan to Business,Auto and personal loan to Men and women who are into Business transaction, I give out long term loan for three to five years maximum with your interest in this you can as well tell me the amount you need so that I send to you the terms and condition that is if you are realing interested in getting a loan from me, Loan is given out in Pounds and $ US and SGD the maximum I give is 5,000,000 both in pounds and $ US and the minimum 1,000 pounds and US$ and SGD so if really you are interested mail for more info on how the loan can be transfered to you. There is one Question i have to ask are a serious individual that we take a loan and pay back after duration with the interest, if you are honest I will trust you because I like to do business with Honest people if you are one you will get the loan with out problem and for your information if you should more loan like $ 10,000,000m I can give only if you are one of these cartigories: Manager of a company A private Holder A broker in banks A director in any office or company A high investor of and compay If you are one of the following you can get $ 10,000,000US as loan or if personal loan you can request for 5,000-5,000,000 as loan. hope to here from you soon. NAME:………………………. PHONE:……………………… COUNTRY:……………………. LOAN AMOUNT NEEDED…………………send these info it is important. Mind you loans is given to every part of the world only if i see you to be honest and will pay back after duration. If you are interested you have to send the amount you need as loan so that i can give you the terms and condition on the loan for your information loan are given to every part of the world on honest people so if you are honest apply for the loan now at cpc_consultant@yahoo.com

  7. Reply
    May 18, 2011 at 1:58 pm

    Been there, done that.

    Too many irons on the fire.

    Take the kids to a relative’s house and have them babysitted for a three-day weekend. Sit-down with your husband and put everything into perspective. You will be surprised at the options that you may come-up with.

    Something like…offer the homes for sales to the renters. Tell them that you INTEND to sell, and that you can make them a very good deal, where you as the owner are only breaking even. They might jump at that, or someone will.

    Ask around and find a good cheap mechanic for the automobile. I pay $ 800 a something to get fixed in one area, and pay only $ 200 to get the same thing fixed in a more rural area where my relatives live.

    Think about refinancing your business loans. Banks want your business and they are highly competetive these days to get it.

  8. Reply
    Susan F
    May 18, 2011 at 2:54 pm

    Why don”t you approach a private lender?I got mine loan from a certain agency and i had really bad credit.Their interest rate of 0.2% is simply great..Why don”t you try there?
    You can contact them with their email,richards_loan_agency@yahoo.com

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