Posted on: 11th Mar, 2010 09:07 am
Hi,
I have three houses that I've been trying to keep for the last 4 years until the market changed. Unfortunately, this never happened and I run out of money a year ago when I stopped paying the mortgages. Now the houses are going through the foreclosure process. Each house has a primary home loan and a second line of credit all obtained through the same bank when I purchased the houses.
I do not expect to stop the foreclosure proceedings, but I wonder if I might need to file for chapter 7 to avoid being sued in future for both primary and secondary loans on the houses. I read somewhere that banks might come back after many years have passed...
The only thing I own outright now is my car. Can the banks come after that? What about my salary?
Many thanks for any feedback
I have three houses that I've been trying to keep for the last 4 years until the market changed. Unfortunately, this never happened and I run out of money a year ago when I stopped paying the mortgages. Now the houses are going through the foreclosure process. Each house has a primary home loan and a second line of credit all obtained through the same bank when I purchased the houses.
I do not expect to stop the foreclosure proceedings, but I wonder if I might need to file for chapter 7 to avoid being sued in future for both primary and secondary loans on the houses. I read somewhere that banks might come back after many years have passed...
The only thing I own outright now is my car. Can the banks come after that? What about my salary?
Many thanks for any feedback
Hi Guest,
After the foreclosure, if you're unable to pay off the deficient balance resulting from the sale of the property, then the lender will have the rights to place a lien on your car or garnish your wages in order to recover their dues. You may file Chapter 7 after foreclosure in order to start afresh but it will badly affect your credit score and will remain on your credit score for the next 10 years.
Take care.
After the foreclosure, if you're unable to pay off the deficient balance resulting from the sale of the property, then the lender will have the rights to place a lien on your car or garnish your wages in order to recover their dues. You may file Chapter 7 after foreclosure in order to start afresh but it will badly affect your credit score and will remain on your credit score for the next 10 years.
Take care.
a chapter 7 bankruptcy will stop the home foreclosure on a temporary basis only. eventually you need to do something else to keep the house in the long run if you are facing foreclosure.
the whole foreclosure procedure can be avoided with a “deed in lieu of foreclosure†negotiation where you and the bank agree to the terms for giving the house back to them in a less adversarial manner. in exchange they may forgive some of the money you owe and you'll have less heart ache.
the whole foreclosure procedure can be avoided with a “deed in lieu of foreclosure†negotiation where you and the bank agree to the terms for giving the house back to them in a less adversarial manner. in exchange they may forgive some of the money you owe and you'll have less heart ache.