We are heading towards foreclosure on our condo. We have a second mortgage that will still hang over our heads. WA state is not a recourse state, so they can just come after us for the second mortgage. Do we foreclose and then file for bankruptcy to get rid of the extra mortgage? We are confused on what route to take. Any help is appreciated!
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File BK first, include all debt and BOTH first and second mortgage. Then, foreclosure will come many months after that. I did it, works well...the so called "nuclear option"... -
What would be the reasoning behind doing it this way? We are wanting to get out of our condo asap, so staying here while in foreclosure doesn't appeal to us.Comment
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Rent free?Originally posted by stockbooi View Post
If you file the mortgage holders can only come after the asset not you for the ballance.
Stay and save.11/23/'10-filed ch 13. 1/6/'11-341, confirmed. Below median. Plan completed 11/30/2015. DISSCHARGED 4/4/2016.JPComment
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bk or foreclosure
Hello stockbooi,
You assessment is correct, to escape the clutches of the 2nd mortgage you need to file BK.
During the delay, you can either stay in the condo rent-free, saving a bunch of money (even though you hate the place)
Or, you can rent the place out for a few months. A little hassle, but make some $$
Another thing to consider is the HOA dues if you have them. The fees before the BK filing can be discharged but the fees after the filing can not. You owe them until you get your name off the deed.
To speed up the foreclosure process, contact the 1st lender and ask for a deed in lieu of foreclosure. basically you sign the deed over to them and they don't have to go through the expense of a foreclosure.
Good luck with this, come back often with your questions!
Tom in ColoCh7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010Comment
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We just signed BK documents this morning and our lawyer advised us of a recent change in the law that gives HOAs a loophole...supposedly that they may (if they insisted) try to come after us for the balance due accrued before filing, and that they can only do that for as long as the property in question is still in our name.Originally posted by tcreegan View Post
Has anyone been advised of this as well? I will try and find more information on this on my end. As of this date we have been paying our monthly HOAs but we do have a previous balance approx equal to 10mos worth.Comment
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HOA fees
Hi all,
Hi confident,
our lawyer advised us of a recent change in the law that gives HOAs a loophole...supposedly that they may (if they insisted) try to come after us for the balance due accrued before filing, and that they can only do that for as long as the property in question is still in our name.
I think you might have misunderstood your lawyer. HOAs have been successful at collecting fees on properties in foreclosure or BK but not pre-petition. This is set in federal BK law which, to my knowledge, has not been amended since BAPCPA act in 2005. HOAs are currently trying to add late fees and legal fees to the pre-petition debt and then put a lien on the property but I am not sure if they have been successful. You do owe for any fees post-petition until your name is removed from the deed.
I would double check this w/ your lawyer.....
Tom in ColoCh7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010Comment
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