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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38132
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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hardship situation

Resolved Question:

i am french and lived in the US for 9 years. i recently lost my father and had to move back to europe. i had a good job in a company with yearly bonus etc...
anyway i managed to buy a house while working there for 9 years and now, i am under water with all the bills of credit cards plus my mortgages...i owe about $18000 to chase, $8000 to discover. I managed to almost pay off my american express...but because i had always paid my cards on time for years, they would not give me a break....now that i have not been paying for months, they are offering to let me pay 60% (chase) of what i owe, but i can only afford 30% over a period of time...anyway there is just too much going on and i would love some legal help to help me resolve this and negociate my house loan as well (i am almost paying 10% apr!)...
what should i do? who should i contact? i want to keep my house!
many many thanks for any idea or tips you coulp bring me...dealing about this from europe is not easy!
laurent
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 6 years ago.

In which jurisdiction is your house located (France or California)?

 

If California, then how much are each of your mortgages, and how much is he property worth?

 

If California, then were the mortgages originated when you purchased the property, or did you refinance at any time?

 

If refinanced, then which loan(s)?

 

Do you have any non-retirement account assets of significance ($$$)?

 

Thank in advance.

 

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Customer: replied 6 years ago.
my house is located in california...San Francisco
my mortgages are 2350 each per month on 30 year period and my house is worth $750000
the mortgages were originated when i purchased my house in 2007
i have never refinanced
i don't have any accounts with assets of significance
thank you for your help,
Laurent
Expert:  socrateaser replied 6 years ago.
Sorry for the miscommunication, but I meant: What are the principal balances of each mortgage?
Customer: replied 6 years ago.
$342000 for one of them and 420000 for the other one. we bought it in 2007 and are still paying interest only.
Expert:  socrateaser replied 6 years ago.

Okay,

 

The reason why I asked for the mortgage balances is that when a 1st mortgage has a balance greater than the value of the property, the 2nd mortgage can be discharged in Chapter 13 bankruptcy. Your facts don't show this opportunity.

 

Your loans are practically break even with the property, so you could file Chapter 7 bankruptcy, continue paying the mortgage and wipe out the credit card debt. Or, you could just let the house go to foreclosure, wipe out the credit card debt and start over.

 

None of this will have any effect on your immigration status, and the fact that you are currently residing in France will not impact your ability to file for bankruptcy in the USA.

 

I think that about covers it. For a consumer bankruptcy attorney referral, see: http://www.abanet.org/legalservices/lris/directory/main.cfm?id=CA and www.martindale.com.

 

Hope this helps.

 

NOTICE: Due to overwhelming customer demand for my time, I am forced to limit our correspondence to only one follow-up question per session. If you are on a justanswer.com subscription plan, this does not prevent you from asking new questions for the same subscription fee. It only means that you must open a new question to continue our conversation. You are welcome to open a new question on the justanswer.com Homepage and preface it with my userid: “ToCustomer”


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