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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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We have a residential home and a rental home. Our residential

Customer Question

We have a residential home and a rental home. Our residential home is up to date on payments but our rental home is in foreclosure, with no payments being made since October of 2008. Throughout this time, we have had many sheriff sale dates but they have all been canceled. The latest one was May 19th, 2010. I called the law firm handling the foreclosure today to see what the status was, and they said Chase Mortgage had CANCELED the foreclosure and if they wanted to foreclose on us, they would have to start all over. We do not understand what is happening and why they will not just take the house. We need to file bankruptcy because after 2 layoffs, we have a lot of CC debt as well. We are just unsure what to do, and when, not if we should file.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  NYCLAWYER replied 7 years ago.
Hello and thank you for your question.

-Could you explain your situation a little more?
Customer: replied 7 years ago.
I need to know if I shoud file bankruptcy before or after foreclosure? And if they have canceled my foreclosure, what is Chase trying to do by cancelling my foreclosure with the attorney?
Expert:  NYCLAWYER replied 7 years ago.
I will send to you to our bankruptcy section.
Expert:  cfortunato replied 7 years ago.
Hi Customer,
If you are ready to file a bankruptcy, you don't have to wait until the rental property forecloses. If you file now, and include the Chase mortgage in your petition, that loan will be discharged even though the property has not yet gone into foreclosure.
Customer: replied 7 years ago.
What if they come after is for any deficiency afterwards? If our BK is already discharged, if they do come after us will we be able to reopen the BK and add the deficiency to it?
Expert:  cfortunato replied 7 years ago.
If the mortgage is included in the bankruptcy petition, the lender cannot pursue a deficiency judgment, because the entire amount of the mortgage is discharged.

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