Can we bankrupt an equity loan w/o losing our house. Both are by the same bank..Wells Fargo.?
Wife and I took out a 50g equity loan over 4.5 yrs ago. At the time we both worked for a big company. We never thought we would both lose these jobs less than a year apart.( My wife stressed out of her 21yr old job and later developed fibromyalgia after nearly dying from bleeding ulcers.) .We had taken in 5 grandchildren almost 3 yrs earlier and of course things were difficult and her job was not supportive..anyway my point here is that over time the money was gone and neither of us found jobs anywhere near what we made before. We squeak by but whats killing us is that equity loan..we cant afford it, because we owe it still after 4 years the interest went sky high. We paid monthly but now after 4.5 years we actually owe more than what we borrowed ( 64g)! .
We realize at our age, we will be dead before we can pay it, we still have 4 of the grand-kids to support, we can make our mortgage but the equity loan jumped up nearly the same as the mortgage. We feel our only way out is to bankrupt it. We are hearing terrible stories of people that got home loan modifications and were worse off! We feel so bad about the position are in. We don’t even want to talk to the bank cause we don’t trust them. I recently completed courses to update my abilities in AutoCAD, SolidWorks and MasterCAM but still haven’t found a job. Since I lost the one really good job, I have worked in a few smaller, family oriented businesses that ended up closed. I went back to school on a scholarship. Currently my income is EDD,trust me, we pray daily for a decent job along with sending out resumes etc. It’s not so easy when your considered older than most of the work force. My wife works for the school district part time when school is in session. We have no health insurance but with this money problem it’s the least of our worries as this problem keeps us up at night. We can’t sell our house, we would get nothing because with what we owe on it and the equity is about what the value of our small home has gone down to. Also, a apartment or house would be more than our mortgage is and we will have these kids till they all turn 18. They are 10-17yrs old now)
If your wondering, we do get state aide for the children approx 160.00 each. If not for that, we could not feed and care for them and they would all end up in foster homes…which is why we took them all in in the first place, to keep them together. This is basically all of it. Any advice, any prayers appreciated.
We haven’t had TV for over 7 years, just dvd’s. The oldest works part time & in school still. The house is 2 bedrooms so we can’t go smaller.We all have given up luxuries My wife still has physcial/medical problems and can only work part time. She is spending the summer doing our yard sales. Renting an apt would for sure be more than our mortgage.