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Maverick, Attorney
Category: Legal
Satisfied Customers: 6392
Experience:  20 years experience as a civil trial and appellate lawyer
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I currently live in Fairbanks, AK and I had a home foreclosure

Customer Question

I currently live in Fairbanks, AK and I had a home foreclosure in Minnesota in 2010. There was a first and second mortgage. The second mortgage bank has served me a summons for the balance owed, about $35,000. I have not made a payment since 2009.I want to know if because of the foreclosure on the property, which resolved the first mortgage, if there is anyway that i can not repay the second mortgage as well?I need to know what kind of lawyer to contact in regards ***** ***** issue.?My ultimate goal would be to not have to repay any amount to the second mortgage bank at all. At this time i cannot afford any kind of a monthly payment or wage garnishment. Is it a possibility that my wages could be garnished if this issue and summons is ignored?If it comes down to it, I could repay $2000 lump sum with no further payments required to resolve the debt, or I'll need to file bankruptcy. I have minimal assets, 2 vehicles paid for and a loan out on 1 other. Can these be taken from me for loan repayment purposes?If I file bankruptcy can I choose to just do so on this loan, or would I have to do all of my debt? I have no other bad debt at this time.
Submitted: 2 years ago.
Category: Legal
Expert:  Maverick replied 2 years ago.
Welcome. My name is Maverick. I very much enjoy what I do and I hope that you will benefit from the information or assistance that I provide.
1. Under MINN law and these facts a foreclosure by the 1st lien holder wipes out all junior liens. This means that the property is no long encumbered by those liens. It does not mean that you, as the former homeowner, no longer owe money for the 2nd mortgage.
2. You need to contact a bankruptcy litigation lawyer who can advise of both bankruptcy and non bankruptcy options. He may be able to use the threat of a bankruptcy as a way to get the case settled for pennies on the dollar.
3. Yes, if they get a judgment, they can garnish your wages subject to some limits imposed by federal and state laws.
4. One Motor vehicle is exempt to the extent of $1,200 in value or equity.
See ArK Code 16-66-218(a)(2); Or, if you use federal exemptions:
you get to keep a Motor vehicle in value up to $3,675. See 11 U.S.C. § 522 (d)(2).
Plus, under federal bankruptcy law you add $1,225 to any property you want to keep. See 11 U.S.C. § 522 (d)(5)
You can also keep the one that you are making payments on if you can keep up with the payments.
5. BK would be filed on all debts, but you can choose to reaffirm the debts that you want, such as the one on the car and keep making payment and keep driving the car.
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