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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31781
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Im not in foreclosure yet, but I will be within 6 to 12 months

Customer Question

I'm not in foreclosure yet, but I will be within 6 to 12 months as my rates adjust upwards. I owe more than the house is worth. How can I protect the mortage company or their agents from going after my completely paid off summer home? Is there any way to protect the last remaining asset I have?
Submitted: 8 years ago.
Category: Bankruptcy Law
Customer: replied 8 years ago.

Watertown, Massachusetts

Already Tried:
Nothing yet. I can still pay the mortgage. But it is only a matter of time until my interest-only ARM adjusts up to a point where I can't pay it. At that point, I'll have to go into foreclosure. My only other asset in the world is my fully paid summer house in Maine. Since I owe more than the house is worth, can they go after that property? If so, is there anything I can do to legally protect that last asset?
Expert:  Roger replied 8 years ago.

If you cannot refinance this mortgage for a better rate, you don't have a lot of options. Because of the fraudulent transfer act, any transfer of the property you do at this point would be subject to reversal by the creditor. The presumption in these cases is that you transferred the property into a trust or to another person to protect it from creditors - which is illegal. You would have to prove that this is not true. Unfortunately, this is very hard to do.


The best thing to do is offer the lender a deed in lieu of foreclosure. This actually avoids the foreclosure process and also prohibits the lender from seeking a deficiency judgment against you. The catch is that securing a deed in lieu of foreclosure is totally up to the bank, and it will not agree to this unless the lender believes that it can sell the property for at least what is owed on it.


If they won't agree, and the foreclosure sale doesn't generate enough money to satisfy the debt, the lender can seek a deficiency judgment and garnish wages, freeze accounts, place liens on your property, force the sale of your property, etc.

Roger and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
Expert:  Roger replied 8 years ago.
No problem - good luck.