Deficiency Mortgage Balance Question

[potsie834]

[iv65536]

Does the Avalon have any mechanical issues or impending maintenance needs?

[keepmine]

It's my understanding that, Ca. is a nonrecourse state meaning, the lender can't sue for a deficiency balance.
Check with a lawyer. A bk filing may not be necessary.

As to your last question. The discharge is what's important. The closing just means the trustee has completed the last administrative details. Often times, a asset case is left open for weeks or months until, the assets are surrendered.

[jribe]

If you're filing under system 2 you still get the other exemption categories; plus the 20k unused homestead and the 1k wildcard. I doubt the avalon w/112k miles is worth 5k. I would list the value around 2k-3k.

are you under median in CA?

I'm in the eastern district- and my trustee was very pleasant. I would even verge on saying "nice".

He didn't ask anyone for paystubs after filing. Just 60 days pre-341; last 2 years taxes - no bank statements.

Your situation seems fine to me.

[potsie834]

Thanks to everybody who responded!

Iv65536 – Avalon is in great shape, and that value is the low Kelly Blue Book Value, it may be worth more.

Keepmine – you are correct, California is a nonrecourse (non-judicial) state; however, I spoke with an attorney who said that this loan is a 2nd (Junior) lien loan, and because I short sold, the Junior lien holder could theoretically sue for the deficiency, even though it is very unlikely. But I don’t want to risk it, and since I currently qualify for Chapter 7 at this time, I figured I better file now and get that deficiency balance discharged rather than risk it.

Jribe – Yes, I am under median at this time, but that could easily change if I start picking up overtime shifts. Thanks again.