Should I wait and see if the bank sues me for a deficiency judgment or just file for bankruptcy?
Long story short..
My home is 0000 upside down. I have two mortgages. I’ve had to relocate out of state and I can’t afford the mortgage and my new rent with my new lower salary. I don’t plan on moving back into the house. I would like to sell the house but like I said… I bought it for 8000 and it’s now worth 0000 and dropping. I have decided to stop paying my mortgage (not easily, I’ve been thinking about it every day for almost 2 year). I’ve used up almost all of my savings to fill in the gaps. I have no assets. I have a great credit score and no other debt but my home right now. I know that banks will foreclose eventually. I’m worried about getting a deficiency judgment. I’ve read that filing for bankruptcy is an option but does it make sense if I have no other debt? Can I even qualify? Should I wait and see if they even try to get a deficiency judgment first?
I don’t want to hear anyone talk to me about responsibility, I KNOW that I got myself into this mess. I need to know how to get out of it or make it less messy. Thanks.
The house is in Nevada. I have rented it out but I’m still in the red every month. I know my credit will be ruined and I can accept that. I just need to know what I can do to prevent or decrease the chances of a deficiency judgment. Again, if my only debt is my house can I file for bankruptcy and should I. Is there a chance that I won’t get a deficiency judgement? I make an ok salary, but my mortgage and rent alone leave me in the red every month not to mention all the other expenses associated with survival! I just want to know the best way to start over with my life.
Thanks.
A bankrutpcy filing, yes, will stop a judgement. Either way, they want their money, so yes, they’ll sue you, get the judgement, garnish your paycheck and/or bank accounts which can be up to 100%…don’t think they won’t do it, they sure will !! They will notify you of a court date, you need to show up and plead your case and can make a payment arragement with the judge, if you don’t, default judgement, then garnishment…that’s basically how it works. If you get the court date, you can file bankruptcy and it will stop it dead in it’s tracks…been there and done it….Best advise is to get all your paperwork together and visit a local bankruptcy attorney to find out what you qualify for and what can and can’t be done. Most will see you free the first visit. Good Luck!!!
September 5th, 2010 at 7:06 amtry alternatives with your home;
a; sell part of it==to an investor
b; put an assisted care facility into it
c; get some roomies
d; prepay the mortgage–2x a mo
put more biz’s into it.
September 5th, 2010 at 7:06 am1st of all, what state is you house in ? I used to work in a law firm that was a forclosure law firm for the state of Kansas. Have you got your demand letter from a law firm ? ( that is a letter saying that you owe so much and you have so many days to contact some one or to pay the amount.) You can file for bankruptcy and the law firm cant doing anything to you if you file.
September 5th, 2010 at 7:06 am