I NEED HELP FAST!!! CH.7 AND FORCLOSURE QUESTION

[jjamm7667]

Hello....My wife has a home that is due to be auctioned Monday at the sheriffs sale. What I need to know is should she have filed Chapter 7 bankruptcy before the sale or would it have made a difference? She is not trying to keep the house. We spoke with a lawyer and she said since she was not trying to keep the house it does not make a difference. She said on a CR it would state discharged in bankruptcy.

[Anonymous]

If she filed the bankruptcy before then it would be discarged in the bankruptcy, if not it won't because she no longer would have posession of the property.

[Anonymous]

We filed Chapter 7 BK in June, 2007, we included our home in the BK.  The automatic stay was lifted in August, 2007, the judge told the mortgage company that they could proceed with foreclosure.  They didn't act on anything until March, 2008; at that time our house was sold at a Sheriff's auction.  Our discharge was filed in September, 2007.  Because the house was included in the BK, we do not owe any deficiency judgment; but because the house was allowed to go into foreclosure, we now have to wait 3 years from March, 2008 to qualify for another home.  It seems in Chapter 7 BK's, the foreclosure process overrides the BK process to the extent of the credit process, but the BK overrides the foreclosure process for any money the mortgage company is still trying to collect.  Our property was in California, and we filed BK in California.  Check on the rules in your state.

[Anonymous]

im in a similar situation. my home foreclosed on may of 08, attempted to be sold at auction in june of 08-no bites.  Finally sold for 18k, in April of 09.  kinda scared of what happens know.  what would happen if i filed bk? will this be a double hit on my CR or should i call the bank and ask what happens now?

[Anonymous]

Unfortunately, the foreclosure will take precedent over the BK - you will have to wait 3 years from the date of sale of the foreclosure.  If you need to file BK for other bills such as credit cards or medical bills, the waiting period is 2 years, but the foreclosure still takes precedent of 3 years.  Will you have a deficiency judgment from the foreclosure?  The last thing you need is for the mortgage company to come after you for any deficiency.  If you do, you might want to talk to a BK attorney about including your home and all other bills in a BK filing.  That way, you will be able to start over with a clean record after 3 years.  Keep your chin up, its surprising how fast 3 years goes by.  I am just looking forward to the day that I can start over, and get it right this time.  Good luck.

[Anonymous]

I dont know if I have a def. judgement from the foreclosure.  On the court clerk site your records are no longer viewable to print out. I will have to pay to find out. I see a judgement for 5/08 but dont know if it is the same.  Im not looking to buy...i know the market is great but would rather save my cash and buy simple and cheap.  Trust me that last thing I want is to file a BK, but I dont want to deal with this a few years down the after I did all this work to improve my scores.  It took my almost a year but I brought my score from a 542 to 600, plus a cc with cap one.  I thought I was being responsible by selling when i could keep up the payments, but my realtor quit in the middle of our contract and no one bothered to inform me until I called in regards to the auction date.  Thanks for your help,  I do wish there was more foreclosure help on this site,

[Anonymous]

You should check with the county recorder where you live to see if there has been a judgment recorded against you.  If there is, you will be able to get a copy to find out what the judgment is for and for what amount.  If a judgment has been recorded against you, it stays for ten years.  If you think that this might be as a result of the foreclosure, you should talk to an attorney to see what you can do.  Best of luck.

[Anonymous]

I don't get what lawyer would tell you it doesn't make a difference. Why wouldn't you have tried a short sale?  that would have kept the forclosure from happening and you being hit with any judgements.

I know people say you have to wait 3 yrs after a forclosure or 2 yrs after a BK is discharged to get another mortgage BUT those are old rules. Banks are not lending to people with perfect credit if they don't have at least 20-30% equity in thier house. I was a mortgage broker for 9 years, banks these days are not lending to anyone with a past forclosure or BK and if the mortgage you were forclosed on was an FHA mortgage YOU WILL NEVER EVER GET AN FHA LOAN AGAIN. Once you have defaulted on a Govt loan the Govt will never insure another loan to you. I have seen people declined FHA loans because they defaulted on a student loan years and years prior. Money is Tight banks are still going out of business.

 Unless  you can put 50% down I don't think you will get a mortgage for many many years Unless the economy changes drastically for the better

[Anonymous]

 I thought I was being responsible by selling when i could keep up the payments, but my realtor quit in the middle of our contract and no one bothered to inform me until I called in regards to the auction date. 

I would get a lawyer and SUE the Heck out of that real estate company and I would sue the RE Agent personally. When you signed a contract with them they had a responsibility to do what is in your best interest. They didn't , they dropped the ball , they should should pay!