How long does lender have to place a lien or bring deficiency action after short sal?

[gudguy1212]

We just sold our house in a short sale and it had a primary mortgage, as well as a home equity line of credit (two different lenders). How long does the secondary mortgage holder have to place a lien or bring a deficiency action against us? We are thinking of declaring bankruptcy for different reasons and don't want an action brought against us after our bankruptcy has been settled. Any advice is appreciated.

 

[army judge]

Most states have a minimum of two years, some have four.
I would presume WA doesn't differ that much from the norm.
We're talking years, not days!
If you're planning on filing a BK, I'd do it sooner, rather than later!

 

[gudguy1212]

Am I to understand then that after I file a bankruptcy, that would prevent the lender from taking action on any short sales that happened before the bankruptcy is finalized?

 

[army judge]

Am I to understand then that after I file a bankruptcy, that would prevent the lender from taking action on any short sales that happened before the bankruptcy is finalized?

A BK puts a stop to all adverse financial actions.
You are required to report all financial activities, thus any adverse action is held in abeyance by the court.
But, it is up to the court to see if the debt is discharged.
You could be required to eventually pay some or all of any debt.
What happens is up to the trustee and the court.
In the interim, however, nothing happens on anything unless the court approves it.

 

[jharris352]

Usually the mortgage holder has to show the deficiency within 30 or 60 days. If you file bankruptcy you can claim it even if they have not come after you. It is a contingent liability that is subject to bankruptcy. They can't just wait you out. If you know you owe it, list them. They are dischargable now.