Help with 2nd Mortgage!!!

[Mgdg731]

I currently have a 1st and 2nd mortgage on my home and the total of these two mortgages is more than my home is worth- by at least 12,000. Is there anything I can do. I have tried to refinance but of course no one as of yet is willing to do it. Also, we have a good bit of credit card debt and have nothing left over each month. I have done everything imaginable to save money- cut off home phone, lower car insurance and car payments, down to basic cable, etc. ..... I am witts end. Can someone please give me some advice on how to get out of this hole. Thanks so much.

[34saving]

Well, as you read through this forum you'll find all sorts of ideas . . .of course, how you implement them depends a lot on the specifics of your circumstance.
1) Anything you can do to make more money? (Tutoring to overtime to freelance video projects to taking in a roommate)
2) Anything you can sell? (garage sale to eBay to consignment shops)
3) Any expenses you can reduce? (coupons to cell phone plans to internet to checking books out at the library)
4) Does your state/county have you appraised at a fair value? (If they think your house is worth more than it is you're probably paying more than you have to in property taxes)
5) Do you get a tax refund at the end of every year? (If so, up your claimed dependants to get more cash now . . .and not give Uncle Sam a free loan)
6) Are you forced to move or are you in a situation where you can wait for your house to appreciate to the loan values?

[mom-from-missouri]

instead of basic cable, I would drop it all together. Do you qualify for any specialized government mortgage programs?? such as, are you a single female, american indiana, minority... If you are home at night, could you babysit overnights?? In college I watched 2 kids for a nurse who worked 11pm-7am. All they did was sleep in my guest room. She delivered them in their pj's and picked them up in their pjs Was a easy $50 a week for me.

[Tree0164]

Cut up the credit cards.

You need more income. Grab a second or third job even for a few months and focus on getting the excess of $12,000 paid off. Even if it is pizza delivery well worth it.

You mentioned car payment. Can you sell your car and buy an older one and get rid of the payments alltogether?

Go to a prepaid cell phone if you need one at all. Check out the articles on prepaid cell phones in the financial archieves.


Also if go to your local library and read any of Dave Ramsey's books.

[VJW]

Originally Posted by Mgdg731

I currently have a 1st and 2nd mortgage on my home and the total of these two mortgages is more than my home is worth- by at least 12,000.

A) Curious how you managed to convince a second mortgage lender to extend debt 12 grand beyond the value of your home ?

B) Minor modifications in your monthly finances would take decades to bear fruit. What you could do is switch your first mortgage to an "interest-only mortgage", which would SUBSTANTIALLY reduce your monthly payments, then you could use the difference to pay down the second mortgage. Then you could refinance the first mortgage back to a regular mortgage.
.

[jmjj215]

I like VJW's idea as long as you change your behavior along with it. If you feel brave, would you mind posting your monthly income, then how much you spend in each category? That'd go a long way for the forumers to attack your budget.

Are you living on a budget? i.e. do you plan beforehand how much you will spend in each spending category each month? This is not a rhetorical question