cancel
Showing results for 
Search instead for 
Did you mean: 

Don't Be Afraid Of Bankruptcy

Noah_Bodie
Senior Contributor

Don't Be Afraid Of Bankruptcy

 
...
Whether it's a difficult divorce, huge medical bills, an extended period of unemployment, or a wrongheaded investment, financial reversals can hit just about anyone. In fact, although bankruptcy's reputation is as a refuge for deadbeats, most of those who end up filing are regular folks who have gone through a life-changing (and finances-changing) experience like the ones I just mentioned.
...
Message 1 of 4
3 REPLIES 3
LEmmons
New Visitor

Re: Don't Be Afraid Of Bankruptcy

Help-
I filed Feb 2007 in order to save home from foreclosure.  Lender would not return fone calls; sold mortgage to another lender, etc.  Falling behind was my fault.  Bankruptcy was dismissed on Chap 13; I was told I should file Chap 7 as it would be more favorable to complete a 7 than leave a "dismissed 13 on the report".  I have lost the home but continue to pay on the second mortgage.  The second mortgage bank was never notfied of the foreclosure sale and has had no contact from first mortgage company-New Century/Carrington.  Have only two small credit card debts and some medical, utilities, etc.  Need a car loan desperately have good stable income.  Want to rebuild credit.  Have rental condo, paying on that mortgage.  What should I do.
Message 2 of 4
Cuteblossom
Established Member

Re: Don't Be Afraid Of Bankruptcy

This does not make sense at all the first lender should have notified the second lender of the foreclose because in most cases the Junior Lien ( 2nd loan could stop this process) When a home is foreclosed the debt on the 1st is wiped off and the 2nd mortgage settles for pennies on a dollar. Example they will take $1,000 for a 50k 2nd mortgage or even just a couple hundred. In some cases I am still trying to research it seems the second can still come after you years later for the deficiency I would look into state law to see if there are any loop holes that could get you out of this situation. Good Luck
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.