Trying to Avoid Bankruptcy

So, here I am - financially upside-down and sideways.  But, I didn't just throw in the towel, thinking I'd just stiff the lenders.  I tried to figure out away to stay afloat and pay these bills.

I called the various lenders and creditors involved, explained the situation and asked if there was anything they could do. Either they said, our records show you are current and there's no reason to speak to you or if I was already behind on my payments they said, “No - How much can you pay today?” 

If it was a home mortgage I was calling about, the all wanted to put me the "Home Affordable" program.  But that program boils down to you're being able to guarantee a monthly payment of a certain amount and verifying I had a job - oh, and the home had to be your principal residence.  I couldn't do that.

If it was revolving credit, again they either offered a lump sum payoff, or for me to guarantee a monthly payment.

I called Chase regarding the rental house and explained the situation.  Again, sorry, there’s nothing we can do.

Interestingly, a Chase one time pointed out that I had signed a contract.  I agreed, pointing out that, “Yes I did sign a contract, and the contract says, if I don’t make the payments that you can take the house.  So, you can take the house.”

He back tracked right away stating they didn't want the house.  I'm thinking to myself, well that's your collateral.

So, now I enter the world of debt collectors and all that embodies.  The calls, the mountains of mail, the name calling...

Oh yes, regardless of the amount of money the banks have made in interest over the years, and your excellent credit history - miss a payment and you becoming nothing but a low life, in a matter of about 30 days.

By the way - with the one mortgage I figured over a five year period I paid just under $50,000 in interest on an $89,000 mortgage.  And, had they been willing to work with me - put the arrearage on the backend, reduce the interest a titch, I could have kept that a viable mortgage for them.  They foreclosed on it, and listed it for sale at $19,900!

Isn't that crazy?!  They wanted to hold my feet to the fire for the $89,000, yet when they foreclosed on the house they listed it for sale for $19,900.  Tell me the lenders are working with a full deck...  

Of course, they received payment from the government for about 85% of the debt or $75,650.  They had already collected about $50,000 in interest from me, and now they will probably accept a bid of about $15,000 on the house.  Oh, look - $75,650 + $15,000 = $90,650.  That's not including the interest they collected or the points and fees they collected up front.   Of course, it does not include the holding costs they incurred, the back taxes, legal fees and commission paid to the Realtor.

But still, the $50,000 interest they collected and the $75,650 they were reimbursed covers a lot of "loss."  So, I'm not feeling their pain.