Legal Question in Bankruptcy in California

Re: reaffirmation agreement after BK

Several things you should be aware of. First, if there is only one lender on your home, and they file a non-judicial foreclosure (which 90%+ of residential foreclosures are non-judicial), then they are barred from pursuing you for any "deficiency" after foreclosure. In other words, once they sell the home at a foreclosure sale, whether they get it, or someone else buys it, its over and you do not owe them anything. That's irrespective of the bankruptcy. If, however, you have a second mortgage, then you could potentially have exposure for a deficiency, were it not for the bankruptcy. The bankruptcy, if you signed no reaffirmation agreement, will most likely protect you from further collections. You need to go back into your files for your bankruptcy, look at your Statement of Intentions and what was indicated for your residential mortgage(s). You should be fine, but you may wish to review this with your bankruptcy attorney to be sure no reaffirmations were made.

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