Posts Tagged ‘filing bankruptcy’

Filing for bankruptcy. My second mortgage, now my first?

February 12th, 2012 by Jarad

Question:  I am in the process of filing for bankruptcy. I am filing chapter 13 so I can have my second mortgage, which is a line of credit through Bank of America, dismissed. My attorney just called and said that because my first mortgage was obtained after my HELOC, only because we refinanced, that the court may deem the HELOC as my first mortgage. Is this possible?



FILING BANKRUPTCY TO PROTECT FROM DEFICIENCY JUDGMENT

February 11th, 2010 by Jarad

Question: CAN FILING BANKRUPTCY PROTECT YOU FROM A DEFICIENCY JUDGMENT?

Answer: -Well for most people who go through a hardship like foreclosure, the main reason they file bankruptcy is because a judgment was filed against them. And since they are not in a position to pay off their mortgage amounts, bankruptcy was their only option unless they wanted their wages garnished. Bankruptcy can protect you from a deficiency judgment if you file before the judgment as well because that mortgage amount would be included in the bankruptcy. Most people wait to file bankruptcy until after foreclosure because lenders have don’t necessarily have to file a judgment against the homeowner. They can issue a 1099 which means the mortgage amount they forgave is considered as taxable income. I would recommend you seek counsel from a professional bankruptcy attoney so you know all your options. Good Luck



Ask The Expert?

Have a question that hasn't been answered? Ask us a question by clicking here.

Search Blog

Featured Product

foreclosure home study course
"The Investors Complete Foreclosure Home Study Course - Only $47"

Discover a Proven System for Buying Real Estate Foreclosures 30%, 40%, and 50% Below Market Value. Generate Huge Returns Using This Step-by-Step Foreclosure System.

Learn More - Click Here

Build Your Wealth

See our investment properties

Looking for Great Returns and Positive Cashflow? Build your wealth by investing in real estate.

Check out our inventory! »

Free Foreclosure Reports

Affiliate Disclosure

We review products from time to time and receive compensation from the companies whose products we review. We review each product thoroughly and give high marks to only the very best. We are independently owned and the opinions expressed here are our own...

Comodo SSL