Should I file bankruptcy or should I wait to see what the mortgage company comes after me for? 14 Answers as of October 31, 2013

Ex filed bankruptcy on our home and rental. I have not yet. I have been waiting over 2 years for my homes to go into foreclosure. My questions are 1- Should I file bankruptcy or should I wait to see what the mortgage company comes after me for. 2- Why is it taking so long is it because he filed in another state? I hold the deed on one of the properties. I have no credit card debt. Just these 2 homes. Should or should not that's the question Thanks.

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Law Office of Thomas C. Phipps | Thomas C Phipps
I would wait unless you have other creditors pursuing you.
Answer Applies to: Missouri
Replied: 10/31/2013
Elkington Law
Elkington Law | Sally Elkington
If the property is in California, any loans that are on the property that you took out to purchase the property (purchase money security) will go away with the foreclosure. If the property was purchased in another state, you need to look at the foreclosure laws in that state. In California, if you took out Junior loans after the purchase, the lender on that loan could conceivably come after you after the foreclosure for the outstanding funds. So as to your question about whether you should go forward or wait may depend on where the property is and what loans are on the property or properties. You should see an attorney for a consult. Most bankruptcy attorneys will give you a free consult, such as I do.
Answer Applies to: California
Replied: 9/17/2013
Fears Nachawati | Sean T. Flynn
The question of should you file has a lot of variables, however based on the facts provided if you have two homes that have been or are being foreclosed it is possible that they can come after you for the deficiency. Filing for bankruptcy will discharge this debt. Whether or not they ever sue you for it you will be liable up until the statute of limitations has run.
Answer Applies to: Texas
Replied: 9/17/2013
Stephens Gourley & Bywater | David A. Stephens
You should avoid filing given your debt situation until you learn whether the mortgage companies will seek a deficiency against you.
Answer Applies to: Nevada
Replied: 9/16/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
I would wait to see if the mortgage companies sue you for a deficiency. They can often take years to foreclose.
Answer Applies to: New York
Replied: 9/16/2013
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    I'd wait since you have no other debt. They may not have foreclosed yet because they don't want the liability. Don't forget you should have some general liability insurance in case someone is injured on the property and you remain liable general upkeep (i.e. mowing lawn) until they do foreclose.
    Answer Applies to: Michigan
    Replied: 9/16/2013
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    There are reasons to file now and reasons to wait and see. It depends on where you are/where the real estate is located and some other factors. See an attorney to discuss your options. Please understand that the property is in your name until the foreclosure is complete so the city/county make come after you if the property is not maintained.
    Answer Applies to: Wisconsin
    Replied: 9/16/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Are you otherwise eligible to file a Chapter 7? I would first consult an attorney to go through the means test and answer that question. Assuming that you are eligible to file a Chapter 7, I would then investigate the status of those loans. I would want to know if they have foreclosed what the state law is pertaining to the collection of the deficiencies. It may be that they are precluded from collecting. I would also consider that they may elect to issue 1099s instead of collecting the debt. This means that the deficiency amount is attributable income on your personal tax return and you will potentially have to pay tax on it. If you file bankruptcy before a 1099's issued you can prevent a text liability from triggering.
    Answer Applies to: Nevada
    Replied: 9/16/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    I am only licensed in California. I would be concerned about them being vacant and you getting hit with code violations (uncut grass, trash ect.). Lenders are taking forever to foreclose because they don't want to responsible for the code violations. Foreclosure process is different in each state, so is your liability. In California purchase money loans are not collectible after foreclosure and the property was your residence when you purchased it. So it matters when you took out the second and if you bought the rental as home for yourself. Better check with local counsel.
    Answer Applies to: California
    Replied: 9/17/2013
    Law Offices of David A. Tilem | Michael Avanesian
    It's a complicated question. Go in to see a bk attorney to see what they say. If you're going to file eventually, might as well know ahead of time what you're getting into.
    Answer Applies to: California
    Replied: 9/17/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Have you tried to sell ether property? A short sale would allow you to get them out of your name now and reduce potential liability as the owner I record. While a bankruptcy would relieve you of the obligation to pay the mortgage loans, it would not do anything to force the transfer of title for the properties out of your name. As for your question, no one can adequately answer that without knowing more about your household size, annual income, state of residence, etc.
    Answer Applies to: Colorado
    Replied: 9/13/2013
    Mark S Cherry, Attorney at Law, PC
    Mark S Cherry, Attorney at Law, PC | Mark Cherry
    There is a limited period after a sheriff sale for the mortgage company to seek a deficiency. Many do not seek deficiencies in New Jersey. If that is your only reason, you may choose to wait to see.
    Answer Applies to: New Jersey
    Replied: 9/13/2013
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    That is a difficult question to answer with many more facts. Where is the property located? Is that a state in which there is the possibility of a deficiency judgment? Without that basic information it is impossible to even begin an analysis.
    Answer Applies to: Washington
    Replied: 9/13/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    I have not seen a mortgage co pursue a deficiency judgment after foreclosure in years. I say wait if that is the only reason to file.
    Answer Applies to: New York
    Replied: 9/13/2013
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