Legal Question in Bankruptcy in Virginia

I moved out of my home approx. 6 months ago when I lost my job. I knew I could not pay the mortgage. I got another job after I had moved out. My home is almost in foreclosure and I am trying to avoid foreclosure. I am willing to keep my home. I have tried to work out a mortgage modification with the lender (CitiFinancial) to lower my payments to no avail. In fact they want me to pay my mortgage payment of $900 plus $300 extra for the payments I have missed. I am single & I receive a pension and work part-time (Monthly income approx. $3K). I have done the math and I cannot meet monthly obligations like utilities and car payment if I agree to this payment arrangement. My lender tells me they will foreclose, pursue a deficiency judgement, and garnish my wages. Can I file bankruptcy on the deficiency judgement?


Asked on 3/26/10, 10:23 am

2 Answers from Attorneys
David Saiki Law Office of David M. Saiki

Yes. A bankruptcy will eliminate the deficiency. If you have enough income you might be able to keep your home by filing chapter 13. Please see my site for more info.

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Answered on 3/31/10, 10:37 am
Gregory Bryl Attorney At Law

Before you give up your house to your bank, you should explore foreclosure defense options. If your mortgage loan was issued within the past 7 years, there is a good chance the issuer violated a host of federal and state laws when originating your loan. Based on these violations, there may be a way to obtain a "forced" loan modification from your bank. Contact us through our website at bryllaw.com or at 202-360-4950 to discuss your options.

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Answered on 3/31/10, 1:56 pm


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