Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law

I have a Home Equity line of Credit againist my home instead

Customer Question
of a mortgage, Can I...
I have a Home Equity line of Credit againist my home instead of a mortgage, Can I short sale or get a deed of lein with-out the Company(American General Finance Co) suing me for the Balance?
Submitted: 6 years ago.Category: Bankruptcy Law
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 5 minutes by:
6/2/2011
Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36,715
Experience: Bankruptcy Lawyer. Experienced.
Verified
Welcome!

I am an attorney with 25+ years of legal experience and am working diligently on your answer while I await your response.

Please tell me:
What state is the property located in?

Thanks!
Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago

 

I am in Arizona.

 

Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
Hello,

So sorry to hear of your dilemma. I will strive to provide you with legal information to assist you. If my answer is not clear to you, I encourage you to ask me for clarification by using the reply button.

Unfortunately when a property is foreclosed in Arizona, a judgment can be entered by the court for any amount of the home equity loan that remains unpaid. This is called a deficiency judgment. The deficiency judgment can be used to execute on other property and wages of the borrower.

A "deed in lieu of foreclosure" is usually only available when there is one lien on the house. Since you have a home equity loan and the first mortgage, it is unlikely that you will be able to a deed in lieu of foreclosure.

A short sale would require the consent of both lienholders.

Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36,715
Experience: Bankruptcy Lawyer. Experienced.
Verified
Ellen and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Customer reply replied 6 years ago
Hi Again I guess I need to be more clear I am sorry. O.K. We owned this home at one time. Then we took out a line of credit 3 differnent times at which with each time they would pay off the first loan (not Mortgage) then open and lend us more untill the last time at which they closed the line of credit. So there is no 1st mortgage or 2nd. I think at the last paper work we signed i asked them was this now a mortgage and they said yes but I dont think it says that on the paper-work. Now can we file for Bankrupcty and keep this home?
Customer reply replied 6 years ago
I didnt accept your answer I am sorry I hit the wrong button. Help me i dont do COMPUTERS > I HATE THIS STUFF. Can You Please Help Me
Customer reply replied 6 years ago
Again there is onle one lein on this home which is with American General Finance and when we took out the first line of credit we owned this home free and clear. Then we needed more so they pd off the first loan (they meaning American Gen again) and wrote us a new loan and we pulled out more and then we did this a 3rd time at which they said the line of credit is now closed and I asked them was it now a mortgage and they said yes but I dont think the paper-work says it. Again can we File Bankrupcty and Save our home and ourselfs?
Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
Hello,

Thank you for your clarification

A bankruptcy would discharge your personal liability on the home equity loan but not the lien on the property. This means if the property were to be foreclosed, the lender could sell the property to satisfy the debt but could not obtain a judgment against you for the unsatisfied portion of the debt. However it also means that you cannot sell the property without paying the mortgage in full


Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago

So I can file Bankruptcy and still keep my home? But I am 6 months behind in payments. They also had me fax over my decision on which other program I wanted to try so I asked for a short sale. If they say NO which they will Can I still File Bankruptcy?

Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
So I can file Bankruptcy and still keep my home? But I am 6 months behind in payments.
You could file a chapter 13 bankruptcy to reinstate your mortgage over a five-year period.

They also had me fax over my decision on which other program I wanted to try so I asked for a short sale. If they say NO which they will Can I still File Bankruptcy?
yes you can


Please let me know if you have any questions concerning my answer.
Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago
Can they stop or refuse the Bankruptcy? Or if we file is it a sure deal that it will go through and we will get to keep our home if we file chapter13?
Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
A properly filed Chapter 13 bankruptcy would immediately stop the foreclosure action. It could permit you to set up a plan to reinstate your mortgage arrearages. In other words, it could allow you to pay the arrearage over a 5 year period.

I hope that it helps to know this information

Thank you in advance for remembering to click accept. If you experience difficulty using the accept button, please let me know as JustAnswer pays me for my time only if the "accept" registers.

Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago
I tried to accept so you would get paid but it says that I have already done so and if i do so again it would cost me more. I really thank-you so much you have really been so helpful during this awlful time in our lives. Thank-you so much. Brenda
Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
Thank you and best of luck to you
Ask Your Own Bankruptcy Law Question
Ask Ellen Your Own Question
Ellen
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36,715
36,715 Satisfied Customers
Experience: Bankruptcy Lawyer. Experienced.

Ellen is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
In a situation where a property owner is being foreclosed
In a situation where a property owner is being foreclosed upon by the city for property taxes.. no mortgage, some liens, including one state and one federal, but still about 100k in equity.. would tha… read more
Asad Rahman
Asad Rahman
Attorney
J.D.
2,289 satisfied customers
I own a business that had a couple of rough years in 2013
I own a business that had a couple of rough years in 2013 and 2014. In 2015 and 2016 I did manage to make a profit, but I again lost money in 2017. With negative income over the past 5 years and with … read more
LegalGems
LegalGems
Juris Doctorate
10,698 satisfied customers
I am going to give you my situation as background. First, I
I am going to give you my situation as background. First, I have a job in the $75K range so will need to file Chapter 13 five year bankruptcy. I live in Florida and have a home in Louisiana with rough… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
If the trustee rules that the person filing for bankruptcy
If the trustee rules that the person filing for bankruptcy has an equitable interest in real estate, can that ruling interfere with his exemption. Or is he allowed then to file for his right of redemp… read more
DrakeLAW
DrakeLAW
Juris Doctorate
975 satisfied customers
I am filing Ch 7. I am entitled to a $39,800 insurance claim
I am filing Ch 7. I am entitled to a $39,800 insurance claim for water damage to flooring in my home. Since this was lender-placed insurance, they won't release the funds until the work is completed (… read more
Legal Expert Justin
Legal Expert Justin
Law Degree
229 satisfied customers
BANKRUPTCY: 1. What happens to a home based-business (Travel
BANKRUPTCY: 1. What happens to a home based-business (Travel Agent) in Personal bankruptcy, Chapter 7? 2. Can debtor keep a Rental property (Wife only Mortgage) along with their primary residence(Husb… read more
socrateaser
socrateaser
1,031 satisfied customers
I am considering applying for bankruptcy. Not sure if it's
I am considering applying for bankruptcy. Not sure if it's going to be 7 or 13. Filing depends on my ex-landlord's willingness to negotiate and settle. In 2008, I signed a commercial lease in my perso… read more
LegalGems
LegalGems
Juris Doctorate
10,698 satisfied customers
If you file a chapter 7 bankruptcy and I own a house free
If you file a chapter 7 bankruptcy and I own a house free and clear that's worth 15000 can I keep the house? if so do I have to claim it as an exemption… read more
LegalGems
LegalGems
Juris Doctorate
10,698 satisfied customers
Why is it legal for a creditor to get awarded a wage
Why is it legal for a creditor to get awarded a wage garnishment against me while I am in a Chapter 13?This creditor was a debt my almost ex wife had and was not notified of the chapter 13 filing I'm … read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,287 satisfied customers
If a debtor is subject to a wage garnishment and the wages
If a debtor is subject to a wage garnishment and the wages are garnished at the employer level, what happens to the non-garnished wages? Can the creditor now just go to the bank and get the 75% of the… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,316 satisfied customers
After a Chapter 7 Bankruptcy, an Equity loan was reaffirmed,
After a Chapter 7 Bankruptcy, an Equity loan was reaffirmed, but only by the husband. The wife never signed. Does this mean that the loan company now has lost consent? In her not reaffirming the loan … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
I live in Florida and am married. My husband owns our home
I live in Florida and am married. My husband owns our home and another home, but I am not on the title or on the loan for either house. I believe there is equity, but I really don't know how much as e… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,287 satisfied customers
I filed a proof of claim for wages awarded by the CA Labor
I filed a proof of claim for wages awarded by the CA Labor Commission but the earned date is outside of the 180 day threshold per 507(a)(4) to qualify for priority status. Can I tardily file a wage cl… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Will my home be taken if I file for ch 7 bankruptcy in nv.
Will my home be taken if I file for ch 7 bankruptcy in nv. my home is worth 110k with a mortgage of $59k, I think equity is $35k. I am filing a declaration of homestead… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,356 satisfied customers
I am an unsecured creditor (unpaid wages awarded by the
I am an unsecured creditor (unpaid wages awarded by the Labor Commission) in a Chap 7 bankruptcy case. I just received a summary of the trustee's final report and it appears that the trustee is recomm… read more
DrakeLAW
DrakeLAW
Juris Doctorate
975 satisfied customers
I was pursuing unpaid wages from a previous employer when he
I was pursuing unpaid wages from a previous employer when he filed Chapter 7. The wages are more than 180 prior to the date of the bankruptcy filing. Is there a way to keep my claim from being dischar… read more
Bill Attorney
Bill Attorney
law
1,596 satisfied customers
21 November 2016 05:31 New Question: The Garnished wages
21 November 2016 05:31 New Question: The Garnished wages were not included on Schedule C. Can the Debtor Amend Schedule C to include the Wages? What other Schedule needs amending; and what is the prop… read more
Law Tutor, Esq.
Law Tutor, Esq.
Lawyer
Doctoral Degree
165 satisfied customers
Regarding my previous question (Bk 7), home equity of
Hi!Regarding my previous question (Bk 7), home equity of $18000:Do you think that the trustee would deduct certain potential expenses from my "equity" ,to estimate their "PROFIT,like :real estate brok… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,356 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x