[Dianna M]

...problem and would like some advice? Issue #1:I bought my house 8 years ago for $39,000 4% Adjustable rate. The next year, the percentage rate went up to 5%, the following year it went up to 6%. A couple of years after that I got a little behind and panicked thinking that I was going to loose my home and agreed to a modified loan. The way it was explained to me was that the amount that I owed would be "tacked on" to the principal. I had gotten the loan down to about $37,000 by this point and owed a little over $1,000 in back pay. After all documents were signed, they tacked on over $2,000 to make my principal MORE than what my original loan was and jacked it up another percentage rate to a permanent 7%!Issue #2:My house is going into foreclosure. I was going to agree to a payment arrangement with the mortgage company but was advised not to because of problem #3.Issue #3: We have outgrown our home. When I first moved in, it was just me and my oldest son. Since then, I have married and had 3 more children. It's a 2-bedroom starter home with only 1 usable closet. We seriously need to move to a bigger house. I've contacted HUD and they say that because of the ages and sexes of my children, I would need at least a 4-bedroom home or apartment, legally. Which brings me to problem #4.Issue #4:We have bad credit and I don't think that we could seriously get another home loan right now even if we managed to avoid a foreclosure crisis. Renting costs almost twice as much as buying a home and I don't think we can afford it.Now. Based on what I have written, if YOU were in this situation, would YOU file bankruptcy?Only one of us is working. I found that when I worked, I spent my paycheck in day care and gas expenses for my mini van and decided to stay home with the kids for a while. I have not worked in 2 years. We also had a garnishment on our check which was why we got so far behind. If we could pay off what we owe outright, we would be able to afford the payments again, no problem. But we still want to move to a bigger house.