Posted on: 29th May, 2009 06:32 am
Sold my condo in a short sale, bank if after me for 2nd mortgage only. Can i file bankruptcy to get out of the debt completely? I really can't afford to pay off 25,000.
yes. file as soon as possible. it will protect you against the second mortgage lender coming after you, since there is no longer any property to hold a lien against. this is common for 2nd mortgage lenders to do that. too bad you did not come here first to read that short sales usually don't cover the second mortgage, unless it's with the same lender as the first mortgage. if you have not been making payments on a 25,000 loan, for months, your credit is destroyed anyways. bankruptcy will destroy your credit, but lenders will be more willing to work with you, than with a 25,000 unsecured loan over your head, and someone suing you for payment. i speak from experience. the 2nd mortgage lender can come after their money forever and can legally harass you daily for payment.