Deficiency Bid at Foreclosure Sale after CH7 Discharge

[bkbirdie]

Hi everyone, my house just sold at the foreclosure auction yesterday. I did not attend the auction, but I just looked up the outcome on the Public Trustee website. The bank (GMAC) bid approximately $138,000, leaving a deficiency amount of approximately $66,800. My CH7 BK was discharged in February 2010, and I included the house and did not reaffirm. My last mortgage payment was for May 2010, and my last principal amount was approximately $187,000. I originally bought the house for almost $190,000 in 2007 (and I put in over $30,000 worth of improvements). So the foreclosure process went pretty fast in my case, took less than 1 year. I am just wondering why they bid so low, and if they can still come after me for a deficiency judgment? My loan was guaranteed by the VA for about $48,000, so I think the VA will be out all of that money, but what about the remainder, can they come after me for that, even though I BK'ed it, I am afraid they'll try to collect. Also, the house is still in my name, about how long does it take for it to go into the bank's name? Thank you in advance for any answers/advice.

[shark66]

No one can go after you for anything if the debt was discharged in your BK. If they attempt to, they'll be putting money in your pockets.

How long will it take for them to get your name of the deed is a whole another matter...and anyone's guess, honestly.

Good luck.

[despritfreya]

The Trustee's Deed, which officially changes ownership, will most likely be recorded within a few days to a week. You have no exposure for the balance owed above the credit bid. One of the reasons lenders are beginning to lower the opening bid below what is owed is to entice investors. Apparently, in your case, the reduced amount was still not enough to get an investor to "take the property off the bank's hands".

Des.