divorce distress

Guest

My house is for short sale, and my bank told my realtor that my MI will file for a deficiency judgment for my line of equity loan plus 8,500 dollars. How can I avoid this. Both my and my husband's name is on this and we are in a divorce. At this point my husband is barely cooperating but has agreed to a short sale. Is DIL a better option if my bank agrees? I'm so stressed!!

larry · Joined: 27 Jun 2007 Posts: 3328 474.61 Dollars($)

Hi anasser.

Welcome to the forum. You should first try for the short sale as you are doing. If the lender agrees then you can do deed in lieu but it will have a huge negative affect on your credit report. BTW have consulted with the lender on this issue? Take a look on the article 17 ways to protect yourself from the foreclosure trap to know how can you avoid foreclosure. Hope it helps. Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest

The lender is Wachovia, and my realtor is primarily the one discussing everything with them. They said they will accept a short sale offer but the MI company will absolutely demand 65,000 dollars and an additional fee of 8,500 for the deficiency. They said there is no way around this. My husband in all of this mess has been completely neglegent and I have my hands full and don't have alot of money. What should I do? I am going to consult with a real estate attorney, but I have a feeling I should file for bankruptcy to avoid the deficiency. What do you think? Even if the house goes into foreclosure, I believe the can still come after me for the deficiency. I'm not sure they will go for a DIL, I don't think so, because my realtor mentioned it to them, and they said my only option is short sale with deficiency or foreclosure. HELP!

Guest

BTW, There are two loans on the house. The second one is a line of equity. That is the problem one that they are coming after. Why are they asking for an additional 8,500?

jenkin7 · Posted: Sat Aug 16, 2008 4:36 am Post subject:

Hello anasser.

Welcome back. What type of bankruptcy do you want to file? Chapter13 or chapter7? If you file chapter7 then all your non-exempt properties will be sold to pay the debt and if you file chapter13 then the debt will be paid with an affordable repayment plan. Check whether you qualify for Bankruptcy Chapter 7 or 13 at http://www.mortgagefit.com/bankruptcy/chapter7-chapter13.html

Hope it helps. Ask the community if you have any more questions.

Guest

Chapter 7. My husband will never help pay back the loan! If I file for #7, can the MI come after me in the future for the deficiency?? I'm I doing the right thing?

larry · Joined: 27 Jun 2007 Posts: 3328 474.61 Dollars($)

Hi anasser.

Welcome to the forums. If you have filed chapter7 then any creditor should not come after you. Al your non-exempt properties will be sold to pay off your creditors and you will get released from all your unsecured debts. But if you wish to pay and reaffirm then you can pay the secure debts.

Best of luck,
Larry

ckalvesmaki · Posted: Thu Aug 21, 2008 5:52 am Post subject:

Any debt included in the BK can't be collected. So file chapter 7....which will also buy you some time in the house as collection activity has to stop. Stop making payments.......find a new place to live.......make sure you include ALL joint and individual debt in you filing.....you can reddem your car if you want.

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