Divorce/Foreclosure/Bankruptcy

[Quincunxes5]

Hi,
Fist time on here so please please excuse my ignorance. Last week my husband of 21 years decided he wants a divorce, I have not worked thru the marriage since we had a son who had cancer twice, therefore I have no real income of my own. We do have a home, with a 1st & 2nd mortgage, which we are almost 2 months behind in payments. This divorce will also force me into bankruptcy. I have spoken to an attorney who informs me that unless I get divorced 1st I may have to file a chapter 13 & pay the creditors for 3 to 5 years, because after the foreclosure my husband would make too much & have too much leftover income. So here are my questions. I live in the state of PA & my divorce will take 90 days, I didn't pay the mortgage payment for August or Sept. Will my mortgage foreclose before my divorce is final in 90 days and before I have a chance to file bankruptcy since my divorce has to be granted first. My 2nd question is,if the foreclosure happens first, and they don't sell the house for what I owe on the 1st and 2nd mortgage, will the PMI that I have paid, pay that difference or will I be sued for the difference? My very last question is, if I am able to include the 1st & 2nd mortgage in with my bankruptcy, can they still come back & sue me for the difference of what they sell the property for & whats due? Thanks for being so patient, I know this is somewhat confusing

[JRScott]

Foreclosures usually do not start until the 6th or 7th month of not paying. (Is the home in both of your names?)

If they did foreclose before hand you could still file bankruptcy and include those lenders and it would free you from any recourse from them.

I"d go ahead and start getting the information up for the bankruptcy. Have all the information ready to go to file as soon as the divorce decree is approved. That way you are all ready to go.

Your lawyer advised you well to it is always better to do the divorce first then the bankruptcy.

[lrprn]

Welcome to BK Forum, Q - glad you found us!

I'm so sorry to hear about your pending divorce - your world must be turned upside down at the moment

Hi,
I have spoken to an attorney who informs me that unless I get divorced 1st I may have to file a chapter 13 & pay the creditors for 3 to 5 years, because after the foreclosure my husband would make too much & have too much leftover income.

Without knowing more about your family income and how responsibility for your family debts are shared between the two of you, we can't say whether this is the case or not. However, with no regular source of income, you can't file a Ch 13 plan on your own. And you can't keep the house and file Ch 7 if your mortgage payments aren't up to date.

I live in the state of PA & my divorce will take 90 days, I didn't pay the mortgage payment for August or Sept. Will my mortgage foreclose before my divorce is final in 90 days and before I have a chance to file bankruptcy since my divorce has to be granted first.

In PA foreclosures must be done through the courts. According to http://www.realtytrac.com/foreclosur...e=Pennsylvania here's what to expect:
"Before the foreclosure process can begin, the borrower must be at least 60 days late on payments. The lender usually sends the borrower two letters before starting the foreclosure. These letters notify the borrower of the impending foreclosure and give the borrower options to prevent the foreclosure. The owner has a period of 2-4 months to find a way to prevent the foreclosure before the lender takes further action.

If the borrower does find a way to prevent the foreclosure, the lender files suit against the borrower for the amount due. The borrower is notified of the foreclosure action in person or by publication and mailing if necessary. After the borrower is notified of the foreclosure action, they have about one month to respond before the court directs the property to be sold to recover the amount due.

The borrower can still prevent the sale at any time up to one hour before the sale by paying the full amount owed."

My 2nd question is,if the foreclosure happens first, and they don't sell the house for what I owe on the 1st and 2nd mortgage, will the PMI that I have paid, pay that difference or will I be sued for the difference?

If PMI = Private Mortgage Insurance, then this protects your lender from a shortfall, not you. If your home sells for less than you owe on both mortgages, your second lender will still come after you for the difference between what they receive after the first lender is paid in full and what you owe them.

My very last question is, if I am able to include the 1st & 2nd mortgage in with my bankruptcy, can they still come back & sue me for the difference of what they sell the property for & whats due?

You can include both mortgages in your Ch 7 bankruptcy and any shortfall left over after the sale of your home will be wiped out.

Most bankruptcy lawyers will tell you to finalize the divorce first before filing - it decreases the complexity of filing bankruptcy enormously.

Hang in there, Q. Keep asking questions - we'll help you sort things out. We're here for support whenever you need it during this most difficult time for you.

[B12]

How is your son doing?

You must be a hell of a strong woman!

Keeping that in mind, there is nothing you can lose worth fretting over, not any house, any man, any money.
You have what it takes to get through hard times and there is no doubt that you will come through all this in due time. Take care of yourself and your son. Nothing else much matters in the scheme of life.

[Quincunxes5]

Thx so much for your help!