How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31687
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

We had a house in another state go into foreclouse after we

This answer was rated:

We had a house in another state go into foreclouse after we tried to sell it last year. The mortgage company bought it back and tried to sell it also without any success so auctioned it last December. We didn't hear from them or anyone else until recently when a Fannie Mae collection agency called. We have an $88,000 defecit we are facing and can't afford to pay that as we lost income as to why we defaulted and we moved due to my elderly mother needing me to be close by. I now need to call back the collection agency today to tell them what I can do. With our bills and income right now, we could only afford $25 a month to pay on anything. They did offer to only have us pay on $9,000 but we would have to claim the remaining $80,000 or so as income and we can't afford that either. We have a couple of credit cards we've been paying on forever that we could include in the bankruptcy but we would want to keep our home mortgage and car payment out of it. We don't own anything of any worth that we aren't still paying on. What can we do?

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.


Filing bankruptcy would allow you to have this deficiency amount from foreclosure and your credit card debt discharged.


As for the taxes due if the deficiency amount on your mortgage is discharged, you can avoid paying taxes IF the house was your primary residence under the Mortgage Forgiveness Debt Relief Act.,,id=179414,00.html


Essentially, if your lender issues you a 1099 for the amount discharged, you can avoid paying taxes (as the government considers this income) under this act.



Roger and 3 other Bankruptcy Law Specialists are ready to help you