foreclosure balance due
Should I file bankruptcy due to a foreclosure?
I am 26 yrs old and had bought a home about 3 yrs ago, due to a lay off and roomates moving out I tried to do a modification but this was in 2008 and hte bank didnt do modifications then, which caused for me to foreclose on that home. The home was sold in an auction 3 mos later and now almost 3 yrs later the 2nd mtg lender is coming after me for a balance of almost $50,000 which I cant pay. Should I file for bankruptcy as I cannot pay for this amount? I am now working but as a temp and my assginment is unstable.
I am a middle-aged corporate finance person.
First, do NOT file for bankruptcy. If during the next ten years you want to buy another house, make an auto loan, need credit cards (Visa or JCPenney, etc.) they will charge very high rates if they loan to you at all.
When you had your first house, I am assuming you made two payments (or maybe just one) to the lenders. When you quit making payments, your 1st lender AND 2nd lender both started their foreclosures. They each went to the courthouse to see who the other lenders were. In addition, your 2nd lender knew full and well, yes, they knew full and well that there was a 1st lender before they loaned you the $50,000. They got notice when you quit making payments. Their job was to work with the first lender on handling the house sale, and distribution of cash. They may have even received some cash from the first lender after first lender auctioned the house, and are not telling you.
Either way, tell 2nd lender that they were paid their share when the house was sold, and hang up the phone.
