Help!!! Need Advice

[Jchx3]

My wife and I just recieved our BK Discharge. However although we are short selling our home the second lien lender(citi) is coming after me. We took out the second in 2006 and at that time my income was really good. See I was in the mortgage industry and since that market crashed, so did my income. Now because of the income on my 2008 Chapter 7 Citi is claiming Fraud and coming after my wife and I. Our BK attorney says he is too busy to handle this. What can we do???


Thanks

[BK2008]

Did you surrender the house in BK?? Reaffirm the mortgages??

Excuse me?? Your attorney is 'too busy' to handle??? Wonder if he would be 'too busy' to handle the malpractice suite he could receive?

When did he say he would be able to look at this?

[AngelinaCat]

This sounds like OUR worthless attorney!

[Jchx3]

In fact my BK attorney referred me to another lawyer who is charging a crazy fee.He is not planing to look at it. Once we paid our fees and closed on it he was done with us. We didnt surrender the house in the BK. We are in the process of short selling it.

[Frogge]

Hi JchX3, Can you please briefly explain why you are short-selling your home after the bk instead of surrenduring it? Were you originally hoping to keep it? I'm just trying to understand the circumstances.

[Jchx3]

Yes we were going to try and keep it, but decided to short sell

[justplaintired]

I am confused, did your sign reaffirmation papers on this house? Wasn't it included in the BK? I don't quite understand, what I have been reading on this forum for awhile is if you don't do a reaffirmation which everyone seems to advise against, you house should have been a ride through which I thought meant you could walk away from it. Maybe I don't understand exactly why it is you don't reaffirm if the house will come back to haunt you anyway.

One other thing is how do they say you committed fraud. I think you maybe need to contact someone about this attorney. Sounds to me like you got yourself a really bad one and surely there is some action that can be taken against him. He sure didn't advise you well.

[Jchx3]

Yeah I think we recived horrible advice. We told him from the start our plans for the house. We told him that we were going to short sale and he informed us to include it in the bk (2nd mortgage). Who can I report this guy too? Also Citi is claiming Fraud because of the income that was on the loan application.

[Minnymouth]

Okay, lets get this straight....
1.Your Chapter 7 is closed and discharged. Right?
2.Did you include the home in the bankruptcy?
3.Did you sign reaffirm papers on either mortgage (1&2)?
4.Did Citi (2nd mortgage) file an Adversary Complaint against you?
5.Did they file an objection to the discharge?
6.Did the orginal lender agree to the short sale of the home?
7.Was it the same lender for the 2nd mortgage?
8.Do you have proof of income for the year that you took out the 2nd
mortgage in 2006? Does your application state this
amount?
9.You had a wage loss after you took our the 2nd mortgage in 2006, right?
10.Your 2007 income tax statements and stubs from paychecks should
reflect your wage losses comparied to 2006 when you made more!

Now most attorneys do not handle adversary complaints without charging additional fees for court cost, etc. They are not included in your bankruptcy. The same goes for law suits.

If you informed your attorney that you were going to do a short sale instead of surrendering your home in bankruptcy, then THEY DO HAVE A RIGHT to sue you for the difference if your house sells low.

HOWEVER, if your home was included in the bankruptcy (both mortgages) you don't owe for either of the mortgages after discharge.

Answer my questions above and we'll see if you can help explain to you what has happened here.

As for your attorney, shame on him for leaving you in this mess if he has "bailed" on you. He should sit down and explain to you what has taken place and what you need to do to correct the problems. Whether he does it (for more money, of course) or someone else does.

Waiting on more info from you......

[mongoose]

If you went stated income then look at this: http://online.wsj.com/article_email/...TEzOTE3Wj.html

Hopefully that will help some.

Even if you went Stated, your income can still drop.

[mongoose]

another article on this: http://www.bankrate.com/brm/story_co...0&prodtype=mtg

[Jchx3]

Ok here it is I just recieved the infomation from my wife. Apprently Citi file an objection to be dishcarged in April but our Bk was discharged in June and Citi is listed on the list of Debtors. My BK attorney told me that even if they were in the BK that this issue would be still open and heard by the court. You guys are right it appears that I have a lazy attorney

[Minnymouth]

Yes, appears you have an adversary complaint that will have to be settled. If you do not respond to this complaint they will be granted a judgement and can then garnish your wages.

Yes, you have your discharge regarding everything else, but your bankruptcy case will not be closed until the adversary complaint is settled.

[Jchx3]

Thanks for the info