Former homeowners/drivers may still be on the hook if there’s a difference between what they owe on their loan and what the bank sells it (the car or house) for at auction. These deficiency judgments are ticking time bombs that can explode years after the item goes away.
I find havnig an unpaid deficiency usually catches you right before you go to buy a house, get married, or try and move on.
If you are facing foreclosure, call now.
Will I lose my house if I file bankruptcy?
I constantly get asked, “If I file bankruptcy, will I lose my house?”. The short answer to this question is “not likely”.
It’s my experience that a mortgage company would rather get your mortgage payments rather than have yet another house on the auction block. If you’re able to make the payment, chances are the mortgage company will complain not a bit. There are some exceptions, the mortgage company expects you to maintain insurance, pay the Jefproperty taxes, and generally take care of the house (their collateral).
Your probably thinking, “well genius, if I could afford the house, I would not be in this kind of trouble!”. Maybe- I see a lot of people who don’t make the house payment because of credit cards or wage garnishments. Those are two things bankruptcy certainly can fix.
“Well, I’m going to lose my house anyway. I don’t need to file.”. Wrong again. If the bank sells the house at the courthouse door and it brings less than the loan amount, a deficiency is created. This is the amount left over that you still owe. That will be part of the claim against you and can be used to garnish your wages or checking account. Also, because of the automatic stay, the bankruptcy can stall the time it will take the mortgage company to move you out. You will be living rent free.
It’s pretty obvious in most cases, a bankruptcy will keep you in your home- even if for just a little longer.
Call us today to discuss your options. 502-716-0000.
Wantland Law, PLLC
Bankruptcy-Divorce-Personal Injury