QUESTION
Should I file bankruptcy or should I wait to see what the mortgage company comes after me for?
Asked on Sep 07th, 2013 on Bankruptcy - Washington
More details to this question:
Ex filed bankruptcy on our home and rental. I have not yet. I have been waiting over 2 years for my homes to go into foreclosure. My questions are 1- Should I file bankruptcy or should I wait to see what the mortgage company comes after me for. 2- Why is it taking so long is it because he filed in another state? I hold the deed on one of the properties. I have no credit card debt. Just these 2 homes. Should or should not that's the question Thanks.
9 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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I would wait unless you have other creditors pursuing you.
Answered on Oct 31st, 2013 at 3:59 AM
If the property is in California, any loans that are on the property that you took out to purchase the property (purchase money security) will go away with the foreclosure. If the property was purchased in another state, you need to look at the foreclosure laws in that state. In California, if you took out Junior loans after the purchase, the lender on that loan could conceivably come after you after the foreclosure for the outstanding funds. So as to your question about whether you should go forward or wait may depend on where the property is and what loans are on the property or properties. You should see an attorney for a consult. Most bankruptcy attorneys will give you a free consult, such as I do.
Answered on Sep 17th, 2013 at 3:11 AM
Bankruptcy Chapter 7 Attorney serving Austin, TX
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The Law Offices of Sean T. Flynn, PLLC
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The question of should you file has a lot of variables, however based on the facts provided if you have two homes that have been or are being foreclosed it is possible that they can come after you for the deficiency. Filing for bankruptcy will discharge this debt. Whether or not they ever sue you for it you will be liable up until the statute of limitations has run.
Answered on Sep 17th, 2013 at 2:44 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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It's a complicated question. Go in to see a bk attorney to see what they say. If you're going to file eventually, might as well know ahead of time what you're getting into.
Answered on Sep 17th, 2013 at 12:10 AM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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There are reasons to file now and reasons to wait and see. It depends on where you are/where the real estate is located and some other factors. See an attorney to discuss your options. Please understand that the property is in your name until the foreclosure is complete so the city/county make come after you if the property is not maintained.
Answered on Sep 16th, 2013 at 3:06 PM
2 Awards
Are you otherwise eligible to file a Chapter 7? I would first consult an attorney to go through the means test and answer that question. Assuming that you are eligible to file a Chapter 7, I would then investigate the status of those loans. I would want to know if they have foreclosed what the state law is pertaining to the collection of the deficiencies. It may be that they are precluded from collecting. I would also consider that they may elect to issue 1099s instead of collecting the debt. This means that the deficiency amount is attributable income on your personal tax return and you will potentially have to pay tax on it. If you file bankruptcy before a 1099's issued you can prevent a text liability from triggering.
Answered on Sep 16th, 2013 at 3:06 PM
Deborah F. Bowinski
Have you tried to sell ether property? A short sale would allow you to get them out of your name now and reduce potential liability as the owner I record. While a bankruptcy would relieve you of the obligation to pay the mortgage loans, it would not do anything to force the transfer of title for the properties out of your name. As for your question, no one can adequately answer that without knowing more about your household size, annual income, state of residence, etc.
Answered on Sep 13th, 2013 at 6:46 PM
General Law Attorney serving Cherry Hill, NJ
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Mark S. Cherry, Attorney at Law, PC
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There is a limited period after a sheriff sale for the mortgage company to seek a deficiency. Many do not seek deficiencies in New Jersey. If that is your only reason, you may choose to wait to see.
Answered on Sep 13th, 2013 at 6:46 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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That is a difficult question to answer with many more facts. Where is the property located? Is that a state in which there is the possibility of a deficiency judgment? Without that basic information it is impossible to even begin an analysis.
Answered on Sep 13th, 2013 at 6:45 PM