Hi everyone. This is my first post here, and I have learned QUITE a bit of information, just from reading the boards. I will be filing BK soon, but I am confused on some details. Maybe someone will shed a bit of light, so I don't have to pay $2000 for an attorney....
Cliff notes version - My hubby and I live in Dallas, TX. We are from CA and have been in Dallas 1 year. We owned our house in CA and rented it out when we left. When moving to Dallas we decided to lease our new place, just so we could get more familiar with Dallas before we bought anything.
Ok, FF a few months.....familiar story, sure you've heard this one before. The real estate market took a turn, our renters stopped paying and ran off, and our mortgage adjusted to a ridiculously high number.
The house also had a HELOC for $28K on it that was maxed out. The first mortgage is through Wilshire, the HELOC through Beneficial. I have heard nothing at ALL from Beneficial. Wilshire started foreclosure proceedings, and we just got a note in the mail saying the house would be up for public auction on April 24 for the $234K that is owed.
We want them to take the house (right?) Its sitting vacant, and we are fine in our leased house in Dallas. I don't think they will get $234K for it, and from what I understand any remaining balance would still be owed by us, is that correct? How do I state this when filling out the BK paperwork? Once the house is auctioned, is it still considered "secured" debt? And what about the HELOC....is it still considered "secured" after a public sale or do you include it with all the rest of your debts like medical bills, etc.
Thanks for any insight.
ETA - Hmm... just thought of this. Is it better to file now, or wait for the public sale to take place??
Cliff notes version - My hubby and I live in Dallas, TX. We are from CA and have been in Dallas 1 year. We owned our house in CA and rented it out when we left. When moving to Dallas we decided to lease our new place, just so we could get more familiar with Dallas before we bought anything.
Ok, FF a few months.....familiar story, sure you've heard this one before. The real estate market took a turn, our renters stopped paying and ran off, and our mortgage adjusted to a ridiculously high number.
The house also had a HELOC for $28K on it that was maxed out. The first mortgage is through Wilshire, the HELOC through Beneficial. I have heard nothing at ALL from Beneficial. Wilshire started foreclosure proceedings, and we just got a note in the mail saying the house would be up for public auction on April 24 for the $234K that is owed.
We want them to take the house (right?) Its sitting vacant, and we are fine in our leased house in Dallas. I don't think they will get $234K for it, and from what I understand any remaining balance would still be owed by us, is that correct? How do I state this when filling out the BK paperwork? Once the house is auctioned, is it still considered "secured" debt? And what about the HELOC....is it still considered "secured" after a public sale or do you include it with all the rest of your debts like medical bills, etc.
Thanks for any insight.
ETA - Hmm... just thought of this. Is it better to file now, or wait for the public sale to take place??