Posted on: 05th Oct, 2007 06:08 pm
I bought a house for $400,000 with an 80/20 and it was foreclosed on and only the first mortgage was paid off, the 2nd has been charged off but they say I still owe and they can put liens on me and such. I have no assets and am wandering if Chapter 7 BK is my only option or if I wait long enough will this nightmare just fade away? My credit is horrible now and I cant even rent an apartment and have to live with my parents. Crying or Very sad
well since your credit is ruined and you already went through foreclosure your second is now unsecured but you still owe it. they can file for judgement. So you can file BK or leave it its up to you. If you have other bills then perhaps you should lookinto that.
The fact that they "charged-off" you loan has nothing to do with your legal responsibility to the debt. The term simply means that from a business standpoint they have considered your debt a loss. Any collection of that debt will likely be classified as "recovery" and be considered profit (remember they already took it as a loss on the books).
The debt is now unsecured, but a judgment does have the ability to attach liens to other assets. Sounds like you currently don't have much in the way of assets, but if you want the opportunity to rebuild your assets and credit you will need to resolve this situation. Either pay the amount you owe- you can try and get an agreement to accept less (just use an attorney and make sure it's in writing) or attempt to file bankruptcy.
Just remember, there are many people in similar situations now and bankrupcy doesn't give you good credit again. It's actually like starting over, but you already have a bad mark against you. Screw it up again, and don't ask to borrow money anymore. Also, it can take years to rebuild your credit and you history stays with you for ten years.
I don't beat around the bush and hope I haven't offended you, but instead helped you understand your situation. If you want a better idea, find a good attorney, pay him a retainer and talk with him.
The debt is now unsecured, but a judgment does have the ability to attach liens to other assets. Sounds like you currently don't have much in the way of assets, but if you want the opportunity to rebuild your assets and credit you will need to resolve this situation. Either pay the amount you owe- you can try and get an agreement to accept less (just use an attorney and make sure it's in writing) or attempt to file bankruptcy.
Just remember, there are many people in similar situations now and bankrupcy doesn't give you good credit again. It's actually like starting over, but you already have a bad mark against you. Screw it up again, and don't ask to borrow money anymore. Also, it can take years to rebuild your credit and you history stays with you for ten years.
I don't beat around the bush and hope I haven't offended you, but instead helped you understand your situation. If you want a better idea, find a good attorney, pay him a retainer and talk with him.
Hi,
Is your lender forcing you to pay it immediately? You can negotiate with your lender to come to some agreement regarding paying off your loan. If they have filed a deficiency judgement, then also you have to pay it within a particular time period.
Try to see if you can avoid filing a bankruptcy. You already have a foreclosure in your credit report and a bankruptcy will damage it further.
Is your lender forcing you to pay it immediately? You can negotiate with your lender to come to some agreement regarding paying off your loan. If they have filed a deficiency judgement, then also you have to pay it within a particular time period.
Try to see if you can avoid filing a bankruptcy. You already have a foreclosure in your credit report and a bankruptcy will damage it further.