pbddesigns, I'm genuinely sorry to hear of your property management difficulties. As a landlord myself, I can empathize.

Vanessa has given you useful information on loan options. But frankly, the hit to your credit that comes from an outright loan default within the past six months will limit your borrowing options very significantly.

Because of the multiple issues involved in your situation, I think you might benefit from talking with a good financial planner. Here are some questions such a person will want to discuss with you:

-What is the status of the rental house?

If the rental property has not been foreclosed upon, then perhaps you can negotiate with the bank for an alternate solution, such as a "deed in lieu of foreclosure". If you cooperate with the bank, they may even be willing to reduce the outstanding balance owed, and/or modify the negative reports made against your credit.

-How can you re-stabilize your household finances?

That your savings account was so depleted that you had to default on the rental property mortgage will rightly be seen as very worrisome by any financial professional who assists you. It suggests you have no "margin for error" going forward. What happens if you or your spouse encounters sudden medical expenses or loses a job? And given that you depleted your savings, where is the money going to be coming from to pay off the loan you seek for the private tutition--especially if that loan needs to be taken out at high rates?

This process may involve taking a hard look at where you can cut back on spending so as to make that $185K income go further during these difficult economic times.

-Are there alternatives to a bank loan for paying the tuition?

The reality is that with poor credit, and no viable options for the secondary students to borrow on their own behalf, you will be hard pressed to get an unsecured loan that covers the tuition on reasonable terms. Since paying the private school tuition is obviously important to you, it might be appropriate to see if grandparents, local charities, etc. might be willing to chip in with gift or loan funds to help make up the difference.

Best wishes to you and your family as you navigate these difficult issues!