Re: Foreclosure after Bankrupsty
Posted by Julio Martinez-Clark on March 21, 2008 at 14:28:14:
In Reply to: Foreclosure after Bankrupsty
Posted by JacquelineT on March 21, 2008 at 13:54:55:
JacquelineT,
You don't specify what type of bankruptcy protection petition you filed
(Ch. 13? Ch. 7?). It's common for homeowners AFTER the foreclosure
process has been started by their lenders to file for Ch. 13 protection a
few days BEFORE the sale date of their property so that the can buy extra
time (1-2 months or more depending whether it was a real filing with
the honest intention to be put on a payment plan by all his/her
creditors). Depending on the homeowner's state laws, a foreclosure
process can last a few months and with the Ch. 13 bankruptcy, the
process can be delayed for many more months (or years if he/she is put
on a re-payment plan and defaults on it).
If according to a Realtor you must advertise your home at an amount
lower than what you currently owe, then the Realtor must negotiate a
short sale with the lender to get an offer accepted (if any). On a short sale
it's not uncommon to see the lender waive their right to a mortgage
deficiency judgment (coming after you for the difference between you
owe and what you sold the property for). If there's no offer on your
property and the property is sold at the foreclosure auction, then (if your
state allows by law), your lender may consider at its discretion getting a
mortgage deficiency judgment against you to satisfy the outstanding
unpaid balance of your loan.
I have written several articles in my blog that will greatly help you.
I hope this helps,
Julio Martinez-Clark
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