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Foreclosure after Chapter 7

Posted on: 30th Jan, 2011 08:28 pm
I filed a Chapter 7 that was discharged in 12/08. I did not include my primary or 2nd. I owe $325 with Wells and another $125K with PNC Bank. the house is attempting to short sale at $250 with little hope at the present. I feel walking with a total foreclosure at this point is coming near. My question is:

With a foreclosure can the 2nd come after me? My lawyer says no, but it sounds strange coming after the fact of filing 3 years ago.

Thanks.
hi starman,

you have mentioned that you did not include your second mortgage in your bankruptcy filing. in such a situation, the lender will be able to come after you in order to collect the deficient balance.

thanks
Posted on: 30th Jan, 2011 11:58 pm
I thought that to be the case, thanks for the confirmation. Short sale vs. Foreclosure....walking away from the liability of the 2nd is not going to happen unless it's negotiated during the short sale with the primary. Is that correct? If there is no compromise with the 2nd then still short sale would make better sense in regards to credit smash and purchasing a home in the future years to come. I was told around 3 years or so to do so. Does that sound right?
Posted on: 31st Jan, 2011 09:58 am
Welcome starman,

Normally, after the short sale, both the first and the second lender can come after you in order to collect the balance amount. However, if you can negotiate with the lender, he may even forgive the dues. After a foreclosure, you'll have to wait for 3-4 years in order to get a new mortgage.
Posted on: 01st Feb, 2011 10:55 pm
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