Be late on mortgage or several Credit cards.

[RelaxTheMind]

My friend/coworker jeff is in a bind. He lost his job about a 2 months ago due to car problems. I got him a job where I work at where he makes more than enough to cover his bills.

Heres the catch... in the past two months he couldnt afford his mortgage and bills. (even though he seemed to have enough for drinks when we went to the bar)...

Would it be worse to be late on one of his mortgage payment or past 30 days late on two credit cards (that i know of) and utilites. Also with the fact that the late payment for mortgage is only like $100 but the whole reconnecting, good faith deposits, late fees for them as well as the credit cards.

Would you pay the mortgage or pay the other bills.

I opted to help out a little... beside teh fact that his parents are completely loaded... but go figure...

 

[everman]

Even if he's late only the mortgage, the credit card companies will know and raise his rates. Maybe try to get a 0% balance transfer for them.

 

[imported_weadjust]

I would pay the mortgage. The bank can reposses the house.

The credit card company can't repo a tank of gas you already burned or a meal you already ate.

 

[Queasy]

Pay the mortgage and call the credit card companies. Some will give you "Get out of jail free" card and/or work a deal with you.

I've always been told that you pay your mortgage first, your car payment second, your credit cards third, and your utilities fourth.

 

[XZeroII]

Mortgage first.

 

[akshatp]

MOrtgage first. Period.

 

[ponyo]

Originally posted by: akshatp
MOrtgage first. Period.

 

[spidey07]

your friend needs credit help ASAP.

But he's already dug his credit grave that will take many years to get out of. And with the new bankruptcy laws, he's in even deeper crap than he is aware of.

 

[sinucus]

i can't quite understand what you posted. If he was late on 2 mortgage payments but paid them then pay the credit cards. If he MISSED the mortgage payments for 2 months then for the love of god pay the mortgage payments. They will forclose on him...

 

[RelaxTheMind]

Not sure if it was a good move... but I somewhat coached him into letting me help with about half the mortgage given I get his first paycheck. Oh well... $600 is no biggie... just wish I said something about doing that with his parents. Didnt really think about that when I was on the phone.

 

[spidey07]

ho boy, it's about to get really ugly, really quick.

 

[XZeroII]

Originally posted by: RelaxTheMind
Not sure if it was a good move... but I somewhat coached him into letting me help with about half the mortgage given I get his first paycheck. Oh well... $600 is no biggie... just wish I said something about doing that with his parents. Didnt really think about that when I was on the phone.

10-1 odds that you'll never see that money again and his home will go into foeclosure. Any takers?

 

[masshass81]

Dude, you need to be careful about lending this guy your money, even if he's a good friend. He's already behind on payments, what makes you think he'll give you his entire first paycheck?

 

[RelaxTheMind]

Originally posted by: spidey07
ho boy, it's about to get really ugly, really quick.

For some reason I think if Jeff were a female this would have a better outcome. Well... as far as returning the favor + check goes...

 

[ch33zw1z]

pay the mortgage, start working on saving some cash to pay your bills, Jeff..

 

[episodic]

You always pay rent/morgage first. Period.

 

[SmoochyTX]

Originally posted by: episodic
You always pay rent/morgage first. Period.

 

[JulesMaximus]

Can he call some of his creditors and negotiate? That would be my recommendation.

 

[randym431]

Mortgage first.

You are correct!!!

Looking ahead if things get really bad and bankruptcy is the only out, keeping current with the Mortgage will make life much easier.

My brother-in-law is a bankruptcy lawyer and gets this question often. ALWAYS Mortgage first is his simple answer.

 

[waggy]

morgage? pfft no need to pay that. what is the worse that can happen?

 

[ultimatebob]

Originally posted by: SmoochyTX

Originally posted by: episodic
You always pay rent/morgage first. Period.

Mortgage, yes. Rent... well... that depends on how much you wanna piss off your landlord. Keep in mind that it is a pain in the ass to evict people from a rental property in most states, so you might be able to slide for a couple of months there.

Always pay off the secured debt before the unsecured debt, though. The credit card companies can't repo your car or forclose on your house, but the home and auto finance people can.