Legal Question in Real Estate Law in Georgia
I am a pharmacist who, after store closings, have been unemployed for 6 months. I did not have much money in reserve and my house is scheduled to be foreclose by Bank of America. I could not qualify for a modification, the house did not sell as a short sale, and then I was too late to get a deed in lieu of payment. I spoke with a lawyer who wanted to do a Chapter 7 Bankruptcy, and I almost did that but family members advised me not to do a bankruptcy. I am pretty sure I can make arrangements to handle my other debt. Only one (a credit card) is a large amount. My question is, since I am down to no other recourse on the house, can Bank of America come after the discrepancy amount? I do not anticipate being able to handle that anytime soon. Should I go ahead with the bandruptcy, just let the foreclosure happen ( I think it is too late for any solution), or is there any other recourse at this time. I have no one to advise me. I am a 61 year old widow and I have no clue how to handle this and I am aftraid that I have no good options. Thank you for any help you can give me..
2 Answers from Attorneys
If Bank of America forecloses on your home, then yes, they can come after the "deficiency" (difference between the value of the home and the balance on your loan).
I am not a bankruptcy attorney; however, given the information you provided in your question, your only option left to avoid foreclosure and a possible deficiency judgment is to declare bankruptcy -- whether Chapter 7 or Chapter 13 is a better option would be best left to a bankruptcy/creditor's rights attorney.
DO NOT WAIT A MOMENT LONGER TO CONSULT A BANKRUPTCY/CREDITOR'S RIGHTS ATTORNEY. THE CLOCK IS TICKING. ONCE THE PROPERTY IS FORECLOSED, DECLARING BANKRUPTCY WILL NOT HELP YOU SAVE YOUR HOME.
Best of luck.*****The above is for informational purposes only and does not create an attorney-client privilege.******
I am a bankruptcy lawyer and the first thing I would tell you is you should ignore your family members (who have possibly made things worse for you).
Yes, the bank might pursue a deficiency. I have not seen your overall numbers to know if you can or should do Chapter 7, but one advantage of filing before the foreclosure is that you delay the foreclosure, often by many months, giving an extra chance to pursue a modification and, if that fails, wiping out the deficiency. As a bonus, if you don't work out modification, you have several months, without a house payment, to save for a move.
See a lawyer - be it me or someone else - ASAP. I'd be glad to discuss this further. And time does matter - alot.
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