Posted on: 09th May, 2012 04:50 am
My wife and I were joint owners of our house. My wife passed away recently and I can no longer afford the payments.
I want to move out.
I owe 147k on the first mortgage and 31k on the second.
the house is worth 145k.
can the first or second bank get a deficiency judgment against me>
ps. i had a chap 7 bankruptcy 2 years ago. i did not sign reaffirmation loan with the 2 banks but kept up the payments as we intended to stay in the house. now with her demise, circs have changed.
I want to move out.
I owe 147k on the first mortgage and 31k on the second.
the house is worth 145k.
can the first or second bank get a deficiency judgment against me>
ps. i had a chap 7 bankruptcy 2 years ago. i did not sign reaffirmation loan with the 2 banks but kept up the payments as we intended to stay in the house. now with her demise, circs have changed.
hi funvijay!
welcome to forums!
if the property is foreclosed, then both the first and the second mortgage lenders will be able to come after you in order to recover the deficient balance from you. in order to do so, they can even get a deficiency judgment against you. however, as your mortgages were included in bankruptcy and as you haven't reaffirmed them, the lender won't be able to come after you for the deficient balance after foreclosure.
feel free to ask if you've further queries.
sussane
welcome to forums!
if the property is foreclosed, then both the first and the second mortgage lenders will be able to come after you in order to recover the deficient balance from you. in order to do so, they can even get a deficiency judgment against you. however, as your mortgages were included in bankruptcy and as you haven't reaffirmed them, the lender won't be able to come after you for the deficient balance after foreclosure.
feel free to ask if you've further queries.
sussane
A lot of times just to close out the deal if you bring pressure at the right instant. Timing is critical in making this request. A good short sale attorney or short sale Realtor can make a huge difference in this process. It is important and really matter.
:idea:
:idea:
deficiency judgement enforcement varies from state to state. for example, in ca we use a deed of trust, which the only recourse for the lender to is reclaim the collateral. other states have the "mortgage" and a judicial foreclosure process. if you live in one of those states, then the deficiency judgement can come after you up to 20 years later, depending on the state. the second mortgage can purchase the first mortgage and foreclose, even if you were current on the first mortgage. consult an re attorney and go from there. have you looking into the harp 2 refinance program? if you were able to stay current in last 12 months, you may qualify if you can make those payments.
