Worried about Short Sale Deficiency from Bank of America

[MikeB]

First off, I'm new to the website and learning a lot! Thanks...

I'm filing Ch. 7 soon and wondering how to protect myself from a future deficiency on the short sale of my home. I owed 300,000 and sold for 230,000. I had mortgage insurance and from what I've read, MI will come after you for any deficiency.

Is there a way to include any possible future actions on this deficiency in my bankruptcy papers? I won't have anything from the bank about the deficiency yet.

I really, really appreciate your advice!!

[tobee43]

welcome mike!!!

yes...all fees associated and deficiencies can be listed and discharged on your bankruptcy.

we come from a state where not only do they charge you for the deficiency, but if you go through a foreclosure there is NO CAP on the fees and it is not unheard of in the state which we owned our home, could cost as high as between 50k-100k in FEES alone....so of course the only way anyone could get rid of them is to file bankruptcy.

[tobee43]

welcome mike!!!

yes...all fees associated and deficiencies can be listed and discharged on your bankruptcy.

we come from a state where not only do they charge you for the deficiency, but if you go through a foreclosure there is NO CAP on the fees and it is not unheard of in the state which we owned our home, could cost as high as between 50k-100k in FEES alone....so of course the only way anyone could get rid of them is to file bankruptcy.

oppppppsss...or pay...

[keepmine]

Just include the lender in your filing.
Your lawyer may list it as a contigent/unliquidated liability.Any way you slice it, a deficiency balance is unsecured debt like, cc's and medical bills. It'll all get discharged.

[tcreegan]

Hi Mike,

Just for good measure, find out who the mortgage insurer is and list them as well. No points off for listing too many creditors....

Tom in Colo

[tobee43]

Hi Mike,

Just for good measure, find out who the mortgage insurer is and list them as well. No points off for listing too many creditors....

Tom in Colo

great point tom...which i did that!