Bankruptcy vs. Forclosure or Repossession
Job loss six months ago has left me facing the loss of my home. I have two mortgages on my home (1st-house, 2nd-pool). My house mtg company has agreed--name removed--send some ''Loss litgation forms'' for a ''Short sale'' of my home and if this doesn't work in the next 40 days, they have suggested that I sign ''A deed in lieu of forclosure.'' I am currently two months behind on the 1st mrtg. Please explain this me in more details. How does this work with the 2nd mtg? Can the 2nd mtg people still come after me? Is this better than filing bankruptcy against the two mortgages, two credit cards and medical bills? Please advise, as time is of the importance! Thanks in advance for your response.
Awaiting some sign of hope!
1 Answer from Attorneys
Re: Bankruptcy vs. Forclosure or Repossession
if you want to keep your house you may do so by filing a chapter 13 bankruptcy where you may spread the past due mortgage payments over the term of the chapter 13 (36-60 months) and possibly have your medical bills and credit card debts discharged (wiped out) at the end of the bankruptcy. You second mortgage may even be discharged as well depending on the equity in your home after the first mortgage. Before a bankruptcy trustee would approve your plan though, you would probably need to get some sort of income at least enough to fund your plan payments. we could still file a bankruptcy petition to hold off the creditor action until you find a job. unless you want to gte rid of your home, the options you have been given are not what you should do. Please call if you want to discuss in more detail. 404-325-4800. Good luck.
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