Question Please Help !! Should I file For BK?

[Frank1978]

Hi,

About 5 years ago, my friend and I purchased an investment property in Panama City Beach Florida for $250K. The house was appraised and valued at $405,000... We never physically went to the property, our mistake. However, we the bank approved the appraisal and engineering report.

We had to refi and pull out some cash for small repairs and also pay for the mortgage because we had no rental income to pay for the mortgage, taxes and insurance.

we refinance and now owed 313K.. This is when the real estate market busted. The house value went below $250K, there was no equity in the house. we tried a short sale, no buyers available!

I had no choice but to stop paying the $3k per month mtg because I could no longer afford it and my partner, well abandoned me. My wife and I tried to modify the mtg., however since it was an investment property, Citi Mtg & Saxon had no options for us. They could and would not help us modify the payments. The harassment calls started, The letters in the mail started to come. we were served papers to appear in court in Florida. We never went due to advice by attorneys.

Well, on Friday, July 30th, Citi put a Levy on our bank acct. We knew this day would come. What do we do? Do we file for Bankruptcy? Do we try to settle the judgment and repay something we dont own any longer.?

Please Help!!

Frank

[DaddyDavid]

FL allows deficiency judgments.

So you can be sued for the loss to the lender after a FC. BK is a way to preserve assets. If you owe $400,000 aand they sell at $200,000 you wwouldd owe them $200,000. So you'd have to provide info for the audience: your income and assets, do you have a house to protect, dependents, what state are you in, and etc. By not going to the court tho, you already lost the case (did you lawyer tell you that that was going to happen, and that you'd have an automatic judgment against you, BTW?), so to preserve assets ot do away with the levy, you'd need to file BK. But there are lots of detials to sort through.

[Frank1978]

Thanks for the response.. as you may assume, I am very nervous and leaving out many details because I don't know where to begin... until earlier this afternoon.

The Situation: The mortgage is in my wifes name ONLY along with 50K of credit card debt in my wife's name ONLY. instead of filing a joint BK, my wife is going to only file for Chapter 7. We were not aware that we can do this.

The future is looking brighter for us! I will keep the forum posted. All I have to say is speak to more than 1 attorney and research .. research.. research!! There is hope!