3 questions re: delinquency suits

[Tom_Mi]

Hi all, (DEFICIENCY, not Delinquency as the title states)
My lender (for a 2 adjacent rental properties) is still trying to decide whether to accept the offers I have on a short sale. I'm in no position to pay the potential 110k deficiency. The deficiency is probably 1/2 lost interest and fees (not principal), but I don't think the bank feels any better about that.

1.)Here in Michigan it's a judgement state. What are the odds my bank would pursue it vs. 1099 or walk away?

2.)How long does it take from close of sale for a deficiency judgment to be final?

3.)How long AFTER the judgement is final can I delay acting on it prior to filing BK? ...I would only delay to save money for my next dwelling, and to show a clean 6months income for CH7.

[Tom_Mi]

Hmmm.. no responses. Can I be an optimist and assume few people here have seen a deficiency judgement happen? i.e Banks don't bother?

[BassBoy]

I wouldn't assume that the banks may not bother.

It's hard sometimes to put an accurate timeframe on how long someone may have in their home before the eviction takes place and it's also hard to speculate what course of action the lenders will take.

Michigan has one of the highest foreclosure rates in the country, so I would imagine that there's a massive backlog of cases to be heard.

[Tom_Mi]

Thanks for the info. Do you happen to know what happens when the judgement becomes official...how soon I have to act on it or file BK?

days? weeks?

[spell]

As in most cases, it's the creditors who force people into most bankruptcies.
If the bank never bothers to try to collect on the deficiency, you may not need to file BK.

But the tax implications are important, get really good advice there, if the bank immediately forgives the debt and sends you a 1099, you're now in a fight with the IRS.
I know there are some rules about insolvency, read those to make sure how they apply.

It's important because most IRS debt isn't dischargable.

[Tom_Mi]

does an unpaid deficiency contribute to ones credit rating on an ongoing basis?