Are we gonna lose our home?Bought a home for $350,000, tax assessment is now at $308,000, but homes aren't selling in our neighborhood, not even for $200,000. We are about to go 30 days late on our mortgage payment. We have been pulling nearly $1500/month from our credit cards since September in hopes that we'd be able to figure out the finances and that my husband's job hours would pick up, but they haven't, which means our credit debt is now up to $30,000. I have student loans totalling $48,000; payments on the $30,000 direct loan comes due in February (after 6 month forbearance) and the other $18,000 private loan just got approved for forbearance until October. We have a $375 monthly car payment and a 1 year old. We also got sucked into a timeshare back in 2005, which has a principal of $9000 and costs us approx $180/month.
SOOOO, what do we do? We can no longer afford our lifestyle, but have trimmed back on ALL extraneous expenses, including phone, cable and internet. We have turned in loan relief papers to both our first (80%) and second (20%) mortgage holders, but those take anywhere from 30-45 days to even be processed. Meanwhile, my income has taken a $300/month hit, even though I've stopped contributing to my retirment.
Question: Is there any hope for us? Or do we have to sit back and watch our credit score (currently 760) drop to hell and our credit report get stained with 30-, 60-, 90-day late...
Should I quit paying the credit cards and make the payments on the house instead? What's better in this economy, to stop paying credit cards or stop paying our mortgage??