My condo has about $250k on the mortgage valued at $150k which takes up about 80% of my monthly (2 pay checks on a bi-weekly rate) income when paying only the mortgage and condo payment. I have put in a request for short sale and just this past week the bank has given me the terms of the short sale that they want. It's come to about $10k total in promissory notes and it says specifically that the bank/investor/insurance/others that take a loss can still come after me for the deficit of the 1st and 2nd mortgage (both with same bank).
I'm going to try to get the bank to forgive the deficit amount but if they don't foreclosure & bankruptcy are my next option. I do have other debt but am currently only paying the minimum.
I went and talked with a lawyer yesterday about possible bankruptcy and I'm a bit shaky on using him for actually proceeding if bankruptcy is certain. The first thing I'm shaky about is the amount of money that is involved on paying for a lawyer. He said he'd charge just short of $2k for everything. Secondly, in March of this year my state increased the mean for single debtors which he gave me wrong information about which makes me a bit more shaky of proceeding with him (shouldn't this be one of the obvious signs of whether or not someone can do CH7 bankruptcy). Third, how do you now which lawyer to trust in terms of their ability to represent me in a bankruptcy?
As of right now I'm gonna see if the bank will forgive the difference, but being big guy vs little guy it wouldn't make much difference for them. I really don't see any point in proceeding with a short sale that the bank can pop up and demand a $100k difference for later.
Anyone got any advice?
I'm going to try to get the bank to forgive the deficit amount but if they don't foreclosure & bankruptcy are my next option. I do have other debt but am currently only paying the minimum.
I went and talked with a lawyer yesterday about possible bankruptcy and I'm a bit shaky on using him for actually proceeding if bankruptcy is certain. The first thing I'm shaky about is the amount of money that is involved on paying for a lawyer. He said he'd charge just short of $2k for everything. Secondly, in March of this year my state increased the mean for single debtors which he gave me wrong information about which makes me a bit more shaky of proceeding with him (shouldn't this be one of the obvious signs of whether or not someone can do CH7 bankruptcy). Third, how do you now which lawyer to trust in terms of their ability to represent me in a bankruptcy?
As of right now I'm gonna see if the bank will forgive the difference, but being big guy vs little guy it wouldn't make much difference for them. I really don't see any point in proceeding with a short sale that the bank can pop up and demand a $100k difference for later.
Anyone got any advice?
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