While visiting my sis over Christmas...learned they are in an upside-down home loan + have $30,000 credit card debt.

They have apparently refinanced home several times during past decade & included in the 'refinance pkgs' their credit card debt, car loans, remodeling & new furniture expenses, etc. Now, their home appraisal value < mortgage balance. B-I-L lost job during 2008...resulting apparently in 'taking cash advances' for monthly living expenses & poor-judgement spending binges. They are behind 2 months in $1500 monthly mortgage payments(& now accumulating late $350 charges) PLUS credit card $600 finance charges exceed the $500 minimum required payment...a no-win situation.

A co-worker just successfully completed a modified mortgage, supposedly based upon earlier legislation passed by Pres.Bush. I am not familiar with this 'modified mortgage program'...so not sure if this would be of help to sis' plight or what other options are available to them.

All helpful suggestions are welcome...Apache