Judicial Foreclosure

Guest 0.10 Dollars($)

Hello,

I have a rental property in California that is seriously upside down.
I owe 1st & 2nd mortgage of $700,000 and the property is currently worth 400,000 tops. It has been refinanced and I do not live in it. I am struggling with the payments and have decided I may have to to let it go. I fear that I may face a judicial foreclosure in this case and would like to know if Chapter 7 is applicable to avoid a deficiency judgement in the event that the bank(s) go for such a filing. If so, at what point does the filing need to be done? Yes, I intend to seek professional help, but I am now trying to look into my options before making any rash decisions.

Thank you

jameshogg · Posted: Sun Oct 19, 2008 9:15 pm Post subject:

Hi Jeremy,

You can file a chapter 7 bankruptcy when you feel that you will be unable to pay the debts any further. But I will suggest you to go in for a Chapter 13 bankruptcy. It will help you to reorganize the debts. The lender will give you a new plan through which you will be able to pay off the debts. This will have a less impact on your credit score as well.

Thanks.

All times are GMT - 7 Hours

Page 1 of 1