Have Income? Facing Foreclosure?

Even if you are okay with letting go of the house, it makes sense to consult an attorney. Here is why.

There may be serious implications from the foreclosure. If you have a second lienholder and that loan was created as a result of a refinancing, it is very likely that you will be sued for any deficiency on that loan. These suits are filed by companies, which purchase the debts from the original mortgage lenders. They are in the business of buying up that debt for pennies on the dollar and going after the debtor for recovery.

Obviously, the debtors can't afford to pay back $100K+. If they could, wouldn't they have kept their home? In most cases a suit such as this happens several months after foreclosure and it can be a crushing financial blow.

Here's the problem. In some situations, prior to the foreclosure a household with income exceeding the California Median could have used the deduction of that mortgage payment (even if no such payments were actually made, even if debtor does not wish to keep the home) and often enough that deduction can make a difference between qualifying for a chapter 7, liquidation bankruptcy versus doing a 5 year repayment plan. The difference can be excruciatingly clear and painful.

I have seen this scenario, play out too many times and it is sad. So, please, consult an attorney when you get your default notice. Get the facts. Have your income evaluated. See where you stand before and after the foreclosure. A good attorney will not pressure you into bankruptcy. A good attorney will discuss options and provide with information so that you are able to make choices that are right for you and your family.

Kathryn U. Tokarska
Attorney at Law

Tokarska Law Center Debt Relief
www.sdbankrupt.com
619-285-1992