I am a 47 year-old woman and have been unemployed for 18 months. I'm having a hard time finding a job. I have lived in my condo for 20 years and owe about $53,000. The condo is worth about $150,000. The loan is a home equity NOT a mortgage and the rate is %8.99. My payment is $740/mo. I pay the taxes/insurance seperately. I asked for and received a two-month reprieve from Nov 2008 to Jan 2009. I have about $20,000 left in my annuity (Bellsouth 401k rolled into CUNA) that I have been making withdrawals from. Yes, I know I will get killed on the taxes. I have a 10 year-old car. I have no other resources.
I have not missed any home equity payments - yet.
I have stopped making payments on my credit cards which I owe a total of $17,000. Simply unable to do so.
I have never been married. I have no kids. Besides the credit cards and loan I have no other bills except monthly living expenses.
Is there a smarter way to withdraw from an annuity? I don't want a loan since I probably can't pay it back. Do I have to worry about my credit cards going after my annuity?
Is there a way to refinance without a job and get a lower rate? Especially since the cards have probably now crashed my credit rating?
Should I just sell the condo? Could I qualify for a better loan/lower rate if I had, say, $80,000 to put down?
I'm not a criminal or a dirtba*** I have just been working and supporting myself and now find I'm in a world of trouble. Any advice would be greatly appreciated. Thank you.

Sounds like it is about time to sell your condo and take the equity to pay off your loans and out standing debt before things get to bad. You didn't say if your HELOC was fixed or variable but I would guess it is variable and tied to prime or LIBOR, in that case you can expect your interest rates and payment to increase in the future causing you to possibly default and having your home foreclosed on. You also would not qualify for a better rate on a new home with 80K down, and would strongly suggest not putting that much money into real estate, especially since you do not have a job. Also, mortgage interest is tax deductible and if you have a good rate, there is no reason to pay it off fast. And you could use the extra money to invest it and make a better return. You would be better off finding a modest home you could easily avoid and putting up to 20% down. This will help build a little equity for fluctuating markets, lower your monthly payments, and avoid paying out in PMI if you opt for 20%. You might find it hard to get a new home, even with money down, since you have not and do not have a job. Right now lenders are demanding hard proof of income and high/clean FICO scores. You really might opt for renting for a while and saving your money for now for a few reasons. Cash is king right now, again, especially since you are unemployed. Also, it will allow you some time to save more money and get your credit back up to par. Lenders are going to want to see great credit in this environment. A clean FICO 740 + should do it for prime interest rates. You also will want to use some of the equity to build an emergency fund. I personally like and suggest having 6-8 months living expenses saved in a high-interest savings account for this purpose. As for your retirement, I would stop dipping into it. Unless you are retired, there is no good reason to use your retirement. That saved money is not an emergency fund and is going to be the only thing to help you live when you either would like to stop working or can no longer work from age or disability. I also would not suggest contributing to an annuity at your age. Additionally, I would suggest that you find ANY job or jobs for income. After two years of unemployment I would assume you are not collecting unemployment any longer. If your having trouble finding a job in your field you might consider reinventing yourself into another field. Networking is key as well. You really need to get out to social events where you can meet new people in your field and others. Don't be afraid to talk about how you are looking for a job, you never know who might be listening and have something for you now or in the future. Also, many community colleges have programs that will allow you to qualify for free tuition to return to school and gain more skills and education to improve yourself. You might try talking to a guidance consoler and a financial aid consoler at a school to see what you might qualify for.

Hope that helps and good luck!

Right now with the economy people even with good credit are having a hard time refinancin*** However many banks have taken on new policys you may qualify for a re-structure of your loan with your current lender. I would call them and ask. I know Wells-Fargo offers a plan like this.

Good luck


Curtis
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Collection agency

First, she said it's not a mortgage, it's a HELOC, she does not qualify. Second, even if it was a mortgage she wouldn't be underwater on the loan, so she wouldn't qualify.