My Story: More confused now than ever

[millerc507]

You also might want to meet with more than one attorney. . . we learned this the hard way. Good luck and let us know what happens.

[brokeinAZ]

thank you everyone for your support. I will let you know what happens

[brokeinAZ]

as i have stated i am walking away from my 2nd home. Both loans 1st and 2nd loans are with Chase. I have been very honest letting them know i cant afford the property anymore ect. Feb 08 i got a letter saying the 1st was transfered to the forecloser dept. Then this week Chase has been calling. So i called back and they are calling about the 2nd. They said that my 2nd is in forcloser review and Chase will determin if they want to file forecloser on it or a Charge off. It will depend on what benifits the Co. With the Charge off she said it would go to collection and they would come after me leagally. interesting...... Any thoughts?

[diviaruba]

as i have stated i am walking away from my 2nd home. Both loans 1st and 2nd loans are with Chase. I have been very honest letting them know i cant afford the property anymore ect. Feb 08 i got a letter saying the 1st was transfered to the forecloser dept. Then this week Chase has been calling. So i called back and they are calling about the 2nd. They said that my 2nd is in forcloser review and Chase will determin if they want to file forecloser on it or a Charge off. It will depend on what benifits the Co. With the Charge off she said it would go to collection and they would come after me leagally. interesting...... Any thoughts?

Was the 2nd a purchase money mortgage? Don't know the law in AZ (if that's where your 2nd home is), but some states classify purchase money mortgages as non-recourse, even if it is a 2nd. If that's the case, then the property secures all debts and there is no opportunity for them to come after you for a deficiency judgement.

If your 2nd is a HELOC or other recourse loan, then yes, they may be able to pursue you legally for any deficiency, which varies under AZ law.

I found this:

A lender may not bring a deficiency suit against a person who lost a property that is 2.5 acres or less at a foreclosure, provided the property was a single one-family or a single two-family dwelling. This is so even if the high bid at foreclosure was less that the balance due on the loan. However, in foreclosures against other types of property, a deficiency suit is allowed, but is limited to the difference between the balance owed and the fair market value of the property, and then only if the suit is brought within ninety (90) days of the power of sale foreclosure.

...here:

http://www.foreclosurelaw.org/Arizona_Foreclosure_Law.htm

[CindyLou]

as far as the community property state thing....if the debts were aquired before you married, technically she is not responsible. The problem is even if one charge was made on the acct since you were married, you would have a hard time proving it.

I have a strong opinion about filings in community property states and have heard horror stories about how 5 years or so down the road right before the statute of limitations will run out they go after the other spouse for the debt. The thing is you may be able to prove it isn't hers, but you have to get legal representation to do that.

So IMO, if you are filing in a community property state, don't chance it....both people should file.

[brokeinAZ]

thanks for the advise. i need to meet with a 2nd attorney to get some more clear info

[millerc507]

Be sure to let us know what they say. I am interested to see how it will work out for you. If you both have to file, it won't be the end of the world.

[stephanie4686]

If I'm understanding right, then you are still current on all your credit cards? I when through a similiar situation, and if you are still current then have her removed as an authorized user asap! If you are behind usually the cc companies won't let you. Even though it won't affect her FICO anymore, better safe than sorry.

[brokeinAZ]

If I'm understanding right, then you are still current on all your credit cards? I when through a similiar situation, and if you are still current then have her removed as an authorized user asap! If you are behind usually the cc companies won't let you. Even though it won't affect her FICO anymore, better safe than sorry.

i will work on that today. Thank you