Got laid off and cannot afford to pay mortgages. I have 1st home refinanced and cashed out $40,000 3 years ago when all was still good. Total balance left is $90,000 First home is only under my name which was rented out.
Then we bought a bigger house 2 yrs ago at the peak of housing and Our 2nd home was under my name and my wife this time which became our primary residence which was also foreclosed recently. Balance owed on 2nd mortgage is $86,000 was not paid during the auction (purchase loan not refinanced). Both 2nd mortage lenders are now asking for payment on the deficit. I have around $26,000 credit card debt also. My questions are;
1) Will any of the 2 2nd mortgage lender be able file judgement against me here in California for garnishment?
2) Considering the concerns above, would it be better to file for bankruptcy? We do not have any car loans as 2 cars is fully paid.
3) If bankruptcy is an option, should I file on my own only considering it is only I who’s on the 1st home 2nd loan which was refinanced and only I who is owing all the $26,000 credit card debt? Or is it better for us to BOTH file?
4) Will we be issud a 1099 for tax on those deficit? Are those not going to be forgiven?
5) If we don’t file for bankruptcy what is the advantage considering we have forclosed homes on our record? I noticed all our credit card limit are getting lower and lower every month bec. of the foreclosure.
I appreciate all the help I need in this difficult times. thank you!!
Eleanor
Claudia
Hey UYTY…………Why don’t you do your advertising somewhere else. This board is for answering questions……NOT for advertising. You are getting irritating, I wouldn’t buy any of your stuff!!!!
Alan
Joesph,
Sorry for the hard spot you’re in right now. I’ll help as much as possible, but I recommend getting professional advice from a “non-bankruptcy” attorney. A BK atty will always tell you to file as that’s how they make a living.
1. CA is a non-recourse state. They can not file on you for the deficit.
2. IMHO, No.
3. Since #2 is No, this doesn’t apply.
4. Yes, you will get a 1099 for all non-purchase money that goes into default.
5. If you have a foreclosure, they are generally disregarded by lenders after 4 to 7 years max, depending on lender guidelines going forward. If you file a BK13, it will run for 5 to 7 years until discharge, then your credit will be affected for another 4 to 7 years after that for a total of 9 to 14 years all together. From a strict credit stand point, Don’t file BK.
Again, I wish you the best.
Karl
My hubby and i are going threw this right now in fact we go to court next month! So I know your pain! Ok first : gather ALL credit cards you have …. Fill large one gallon bag of water, put cards in water, shove bag in freezer! Next call a lawyer FAST!!! you and your wife should both see him/her you want to look into chapter 7 – and chapter 13 , (7 discharges ALL debit) 13 it lets you make payments on your debit! See what will work for you. I warn you there is loads of paper work and classes to take ( it’s a real pain!!) but to answer one of your questions YES they can garnish wages from you and your wife. when you are married you are one ! In my state atleast they say that all is fair in love , war, and money …. meaning that if it is yours it’s hers! Good Luck hope this helps !! But really find a lawyer they can let you know what needs to happen right now and who needs to be involved !!!!