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How to avoid foreclosure amidst disability and bankruptcy

Posted on: 01st Jul, 2007 03:22 pm
We are going to end up in foreclosure,it hasn't happened yet but it will,and that's ok now. We have accepted this fact. Due to disability,wifes job loss, bankruptcy (#7) etc. it is going to happen.As twisted as this may seem,we would like to know how to speed things up or must this all just run its course.Could we inform the mortgage companies we are giving up, here's the house,we are leaving. I know this all sounds crazy,but it is now a fact that it will happen and we are going through mental hell and would like to just go ahead and move on and leave.Can anyone comment on this? Has this happened to anyone? Can this be done this way? Please give some advice.Thank you so much.
Wow, that felt good to give something back to this site after all they have helped me with. And your not just whistlin' dixie when you say that's a big relief. Still, if anyone has a comment on this, please post it.
Posted on: 05th Jul, 2007 08:49 pm
In case I was confusing when I was asking for comments, I was asking about the wage garnishment. I'm struggling as it is and although from my other post it looks like garnishment can't be done for a deficiency suit. My thinking has become now like everything that can go wrong, will. So if there are other comments about the garnishment thing, please post them. Thank you.
Posted on: 07th Jul, 2007 09:02 am
"I'm struggling as it is and although from my other post it looks like garnishment can't be done for a deficiency suit. My thinking has become now like everything that can go wrong, will. So if there are other comments about the garnishment thing, please post them."

You are right Mikee. In PA wage garnishment is only possible for child support, student loans and federal taxes. Your wages cannot be garnished for recovery other debts. On this page also you will find confirmation of the fact that wage garnishment is not possible for consumer debt - http://www.cccsintl.org/susan/garn.htm

Niicss
Posted on: 07th Jul, 2007 07:25 pm
Niicss, thank you for the confirmation on garnishment. It's so important and when it seems like everything is going wrong, getting confirmation on anything positive is a big relief. You like to hear it over and over that something, anything went right for once.
Posted on: 08th Jul, 2007 08:28 pm
Mikee, every state has its own laws about garnishment and you live in one of the four states where wages cannot be garnished for recovery of consumer debts. The four states are Texas, North Carolina, South Carolina & "Pennsylvania".

Thanks
Blue
Posted on: 09th Jul, 2007 02:54 pm
Blue, Thank you for that response, like I said before, when everything is going wrong, it's a relief to hear something positive once in a while. If you might know about this-if a mortgage company goes ahead with a deficency suit, can it be included in a bankruptcy #7 ?
Posted on: 09th Jul, 2007 08:21 pm
Well Mikee, I don't think it is possible to include the mortgage debt in the bankruptcy Chapter 7. This is because the lender will already take back the money he has invested through foreclosure and then ask for a deficiency judgment. So, I don't think there's any need to include the loan in the bankruptcy.

Take Care
Posted on: 10th Jul, 2007 12:29 pm
"If you might know about this-if a mortgage company goes ahead with a deficency suit, can it be included in a bankruptcy #7 ?"

Mikee, if foreclosure occurs before you file chapter 7 and lender is able to get a deficiency judgment for the balance dues then this balance amount can be included in Chapter 7 case.

Thanks
Blue
Posted on: 10th Jul, 2007 04:45 pm
So there is an advantage to waiting on the BK until after the foreclosure and the time allowed to file a deficency suit has passed. If I were to file #7 before the lender filed the deficency, I can not include it in my BK? Would this be correct?
Posted on: 11th Jul, 2007 03:40 am
Sorry, I need to add to my post above. If the foreclosure happens after I file #7 I would not be able to add the deficency suit to it, would this be correct?
Posted on: 11th Jul, 2007 03:44 am
Hi Mikee,

Welcome back to the forum.

If the bankruptcy is filed prior to the foreclosure, then the lender cannot initiate the auction until and unless he receives the permission from the bankruptcy court to move on with the home sale. So, till the court gives permission, the lender cannot hold the auction and even ask for the deficiency if at all the sale price is lower than the outstanding balance.

Hope this helps..

God bless you.

Samantha
Posted on: 11th Jul, 2007 04:27 am
So as long as the lenders are in the BK, this deficency stuff will be taken care of. If the BK is first it's like Samantha said the lender can't initiate, if it's after it's like Blue said it can be added to the BK. I think I might be able to sleep tonight. Thanks a million again to the folks of this site, you have a life saver web site going on here. I don't know if you realize how much good you do for people. Keep treating people who have run into some bad times like human beings.
Posted on: 11th Jul, 2007 01:28 pm
Hi Mikee,

"If the foreclosure happens after I file #7 I would not be able to add the deficency suit to it, would this be correct?"
Court gives order granting discharge of all dischargeable debts which exists on the date chapter 7 case is filed. So if lender is not able to get court orders to recover balance amount through deficiency judgment before you file chapter 7, you will not be able to include it in the case.

We will all prey that you be able to come out of this big financial crisis presently in.
Posted on: 11th Jul, 2007 01:59 pm
Carnahandavid, with the understanding that the BK puts everything (foreclosure) on holdbut wouldn't I be including the lender in my BK as a debt I can no longer pay (mortgage)? So if the lender files the deficienty suit sometime it wouldn't matter because they are included in BK. Confuses say "this is confusing, don't go to sleep just yet."
Posted on: 11th Jul, 2007 05:02 pm
Mikee,

You are filing Chapter 7 which will temporarily stop the foreclosure process until the lender is able to get permission to go ahead with foreclosure. So filing chapter 7 will not stop foreclosure but only delay for some time.

But if you were filing chapter 13 then it can be possible to include the mortgage in the plan and make missed payments from your income as per the repayment plan set and avoid foreclosure.

"but wouldn't I be including the lender in my BK as a debt I can no longer pay (mortgage)?"

Like I said being a secured loan lender can foreclose and bankruptcy filing cannot stop it but only delay up to the time lender is able to get the permission to foreclose.

"So if the lender files the deficiency suit sometime it wouldn't matter because they are included in BK."

You are including one of them in bk, it is the mortgage debt or the deficiency amount. Both are occurring at different times and cannot be part of chapter 7 together.

Deficiency judgment is included in bk or not depends on when foreclosure occurs.

Deficiency judgment can be included in bk if foreclosure has already occurred and lender has been granted a deficiency judgment to recover the balance amount. After foreclosure, the deficiency amount can be included in chapter 7, which is not so for actual mortgage balance.

If all this sounds confusing then feel free to ask. I will try to explain in a simpler way.
Posted on: 11th Jul, 2007 05:29 pm
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