Personal Bankruptcy Bankruptcy

[usecaution]

I recently filed chapter 7 without the aid of an attorney. I have a morgage on a 135,000 home. The Morgage Company chose to file a "relief of stay" in an effort to continue with foreclosure.

Also, I have not made a Morgage payment in a year and I just recieved (last week) notification to vacate in 60 days. My question is

A. Can the bank sue me for the remaining balance on the house after they sell it. ( if the note is 135,000 and the house sells for 110,000 can the bank sue me for 25,000?)

B. Can the bank sue me for the 12 months of payment missed or any portion thereof.

If either is the case it may be more benefical to keep the house under a chapter 13 bankruptcy. What are your thoughts.

My interest rate is 8.875% any thoughts on getting a better rate with bad credit?

 

[Michael Wechsler]

A. Not only can the bank sue you for the shortfall of the sale of your house, but they can and likely will also add to it the costs of the foreclosure proceedings and other related costs. Look at your mortgage agreement.

B. If you are in default of your mortgage, it is likely you will be sued for interest due on those amounts.

The place to look is in your mortgage note. It will likely list a number of remedies and contain any limitations that may apply.