(Closed) Bankruptcy: Get a lawyer or proceed by self?

posted 4 years ago in Legal
Post # 2
8833 posts
Buzzing Beekeeper

uncltredpearl:  This doesn’t make sense. The deed says who owns the house. The mortgage says who promised to pay for the house. If your mom’s name is the only one on the deed, she can sell the house and then pay off the mortgage. The bank is not going to refuse to accept her payment because someone else also promised to pay for it. Or are you saying the house won’t sell for enough to cover the outstanding mortgage?

Also, bankruptcy is to discharge your debts so you don’t have to pay them anymore. You said the mortgage is her only debt, and it’s already in foreclosure. So what benefit would the bankruptcy provide?

  • This reply was modified 4 years, 5 months ago by  Daisy_Mae.
Post # 3
47188 posts
Honey Beekeeper
  • Wedding: November 1999

uncltredpearl:  You need to speak with a lawyer just to be sure your understanding is correct. I don’t understand how him being on the mortgage has an effect on her ability to sell the house. I could pay off my neighbour’s mortgage today if I chose to do so.

Post # 4
546 posts
Busy bee
  • Wedding: May 2015

Tell her to speak with a HUD-certified housing counselor. A list of agencies is on the HUD website, and services are free. Bankruptcy is actually in some ways worse than foreclosure since it stays on your credit report longer. I don’t see the benefit for her filing bankruptcy. 

  • This reply was modified 4 years, 5 months ago by  dances123.
Post # 6
1310 posts
Bumble bee
  • Wedding: April 2015

You need a lawyer ASAP. 

Post # 7
546 posts
Busy bee
  • Wedding: May 2015

uncltredpearl:  The cost of proceeding with a foreclosure (attorney fees, etc) and then selling the house almost always is more of a loss than a short sale. As I recommended above try to get a housing counselor to communicate with the servicer for you. Sometimes they are more responsive that way. 

Post # 8
523 posts
Busy bee

definitely get a lawyer!! Does she own the house she lives in? If she goes bankrupt she can lose that too.

see what your options are before doing anything drastic 

Post # 10
1845 posts
Buzzing bee

uncltredpearl:  I don’t know a lot about real estate / mortgages / foreclosures / short sales / etc as (fortunately) no one I know has had any issues in these areas. 

But, it sounds like things are getting confusing on your side. If the mortgage company won’t cooperate when it comes to selling the house I’m pretty sure that’s because they are already in the processing of putting the property into foreclosure, so it’s too late to do anything about it. 

I 100% think you should go see a lawyer to talk about your options. If your mother’s ex is on the mortgage as well then your mother is only responsible for half the debt. A lawyer will be able to help work this all out. 

Post # 11
7778 posts
Bumble Beekeeper
  • Wedding: October 2010

See if the state that you live in is a “deficiency state”. If it is, then the bank can go after your mom for the difference that the house eventually sells for. As in, if her original mortgage is 200k but the foreclosed house only sells for 100k at auction, then not only did your mom lose the house, she could still be liable for the money. Unless she declares bankruptcy- that is one reason bankruptcy might be an option for her. This is why she should get a lawyer.

Post # 12
1740 posts
Bumble bee
  • Wedding: June 2016

Yep, get a lawyer.  Once the foreclosure goes through, it will be the only way to protect her wages and/or bank account from being garnished for what is still owed to the bank.  I think you already know this, and are just asking if you should have a lawyer do it instead of doing it yourself, and I think yes, you should.  There are too many game-changing errors you could make on your own.  Leave it to the professionals.

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