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Pratt
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 Posted: Mon Mar 05, 2007 4:54 am Post subject: Can lender sue my wife (in bankruptcy) after foreclosure? |
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Our property is in my wife's name and she is in Chapter 13 bankruptcy. Her current lender is about to foreclose. She had purchased the house with an ARM and the payments do not justify the value of the property. Can the lender sue her after foreclosure even though bankruptcy is there. We are currently residing in Indiana. Please advice. Also if I purchase a house in my name without her getting involved, can they pursue me?
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 mcole
Community Experts
Joined: 11 Oct 2006
Posts: 53
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| Posted: Mon Mar 05, 2007 5:18 am Post subject: |
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Greetings,
You would be best off talking to an attorney. But remember, a bankruptcy does not eliminate foreclosure, it only postpones it.
And YES, Indiana does their foreclosures by a judicial process. Which means that deficiency judgments are allowed, and they could come after her for that amount.
Again, you would be best off talking to an attorney. But here are a few links that might explain the foreclosure process in Indiana a little better.
"http://stopforeclosure.com/Indiana_Foreclosure_Law.htm"
"http://www.foreclosures.com/www/pages/state_laws2.asp?state=IN"
"http://www.realtytrac.com/foreclosure_laws.asp?strState=Indiana"
"http://www.foreclosurelaw.org/Indiana_Foreclosure_Law.htm"
"http://www.realtytrac.com/foreclosure_laws.asp?strState=Indiana"
[Link deactivated as per forum rules. Thanks.]
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Halpern
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| Posted: Mon Mar 05, 2007 6:28 pm Post subject: |
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| Quote: | | Her current lender is about to foreclose. |
While your wife is in chapter 13 plan there is an automatic stay which goes into effect and the lender cannot foreclose to collect any outstanding mortgage payments that were due your wife filed bankruptcy. |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1606
Location: MASSACHUSETTS
150.38 Dollars($)
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| Posted: Tue Mar 06, 2007 2:11 am Post subject: RE: bankruptcy takes priorty |
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Hi Pratt,
Welcome to the forum.
No doubt, bankruptcy takes the priority over foreclosure. It delays the foreclosure. But it does not prevent it from taking place. The bankruptcy trustee will decide what actually has to be done. He can allow the lender to place a petition to the court so that property is freed from bankruptcy. But the lender can only do it if there is no real equity in the property.
The lender may or may not sue your wife if there is a difference in the sale proceeds in foreclosure and the outstanding debt balance. This will depend more upon the type of the foreclosure. In case the trustee organizes the sale, the lender cannot ask for the shortfall in payments except if your wife had committed fraud while taking out the loan.
Hope this is going to help you.
God bless you.
Samantha
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miller_st
Joined: 17 Jan 2007
Posts: 917
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| Posted: Sat Apr 28, 2007 7:43 pm Post subject: |
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| Quote: | | Also if I purchase a house in my name without her getting involved, can they pursue me? |
If you get a house in your name then foreclosure of the home in your wife's name won't have any affect on this new purchase that is made separately.
Miller |
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ligroy
Joined: 03 May 2007
Posts: 9
5.32 Dollars($)
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| Posted: Fri May 04, 2007 1:10 am Post subject: |
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yes, bankruptcy does not erase the shackles of a foreclosure, but best bet is to talk to a professional because this case is much more in depth and something only a professorial can answer knowing all of the details in your case.
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