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  1. ohiobicycle55

    ohiobicycle55 Law Topic Starter New Member

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    Hello,
    I have become disabled and cannot work. I will soon have only SSD as an income. We have another house here in Ohio that we bought using my 401K money. It is in need of a lot of repairs. The house we are living in has a mortgage on it, that I will not be able to pay with only SSD as an income.
    I will have to let the bank take it. My question is, can the bank also take the other house that we don't owe anything on? Or my car, that is paid off?

    Thank you,
    ohiobicycle55
     
  2. army judge

    army judge Super Moderator

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    The answer is difficult to provide, but generally, YES; your other assets could be in jeopardy.

    I suggest you discuss your options with a couple local bankruptcy attorneys.

    Bankruptcy can provide many advantages in the short term, and over the long term

    If you're disabled, or a disabled vet, that could also help.

    Talk to those attorneys in your county tomorrow.

    Good luck.
     
    ohiobicycle55 likes this.
  3. txls

    txls Well-Known Member

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    Have you looked into selling the house?
     
  4. zddoodah

    zddoodah Well-Known Member

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    So...Bank X holds a mortgage against House #1. Right?

    Does Bank X also hold a mortgage against House #2? Apparently not since you wrote that you "don't owe anything on" House #2. Right?

    Is Bank X's mortgage on House #1 the same mortgage you obtained when you bought House #1?

    What is the fair market value of House #1, and what is the balance due on the mortgage?
     
  5. ohiobicycle55

    ohiobicycle55 Law Topic Starter New Member

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    My house needs repair. It would not sell for what I owe on it.
     
  6. ohiobicycle55

    ohiobicycle55 Law Topic Starter New Member

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    House # 1 has a mortgage of $59K balance. Market value, if it were fixed up would be around $80 K. But it needs work before it would be worth it.
    I purchased house # 1 in 1998. I had it refinanced a few years back, with the same bank I bought it through. I have never been late on any payments, but am about to now, because workers comp is about to stop, and all I will have is SSD, which will be considerably lower. House # 2 we bought through an auction and is payed off. No mortgage. But is in bad repair. Needs work before we can live in it. But again, no mortgage on it.
     
  7. army judge

    army judge Super Moderator

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    You can SAVE the home you own, house 2.

    House 2 is yours, and you won't need 50 LARGE right away to renovate it.

    If you do NOTHING, house 2 could be in jeopardy.

    Talk to a couple bankruptcy lawyers.

    The visits won't cost you a DIME, just 20-30 minutes of your time!

    You'll learn if BK can save house 2, while not destroying your FICO.

    However, each day you delay learning if BANKRUPTCY can help you, is one more day THEY might be able to snatch house 2 away from you, and/or ruin your FICO.

    Please, for your sake, don't allow Tuesday to end without you visiting at least two BK lawyers near your home.

    You can also investigate if you want to tackle your BK yourself, which will save you even more money.

    It's not tat hard, for most people, but you'll have to buy yourself a how to book, or read the FREE information provided by each BK court.

    For instance, here's the BK Court you'd use, if you decided to do it:

    Bankruptcy Basics

    Just one of three primers the court offers pro se litigants.
     
  8. zddoodah

    zddoodah Well-Known Member

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    Ok...If you default on your mortgage, the bank can foreclose. There are alternatives to foreclosure (e.g., short sale) that you might look into before the foreclosure process starts.

    If the bank forecloses, it sounds like the foreclosure will not generate enough $$ to pay off the mortgage, so the question then becomes whether the bank may sue you for the shortfall. This is called seeking a deficiency judgment, and you should read some of these search results to try and figure out if that's a possibility.

    Even if the bank can seek a deficiency judgment, it's possible that it won't seek to do so. If it can and does and wins, it will get a judgment against you. If that happens, then the bank would be in a position to put a lien on your other home. It's possible (but probably not likely) that the bank might seek to have the home sold in order to enforce the judgment. The bank could also seek to enforce the judgment against motor vehicles you own However, enforcing an ordinary civil judgment against a debtor's primary residence is typically expensive and generally impractical (that is also true, albeit to a lesser extent, with one's personal automobiles). Any such judgment could also be discharged in bankruptcy.
     
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