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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31734
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I purchased a new home in late 2010 that was a bank repo.

Resolved Question:

I purchased a new home in late 2010 that was a bank repo. My old home immediately was put on the market. I lost my job in March 2011 and have been struggling to make double mortgage payments, as well as heat and water bills for the old place. I've had two offers for the old home fall through because the buyers cannot get financing. I cannot continue to float two mortgages and am drowning quickly in the debt. I live in Indiana. Can I let the house on the market go into foreclosure, and what recourse does the bank have for me?
Submitted: 5 years ago.
Category: Real Estate Law
Expert:  Roger replied 5 years ago.
Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney here to assist you.
Customer: replied 5 years ago.
My lender is Bank of America.
Expert:  Roger replied 5 years ago.
Under Indiana law, the lender has a right to seek a deficiency judgment against you for the remaining balance of the loan after the foreclosure proceeds were applied to the loan balance.

If your property is sold, and there is a deficiency, a judgment can be granted and the creditor can attach that judgment against all of your property - including your new house.

Indiana only allows for a $10,000 homestead exemption, so if you have much equity in your house, there could be exposure.
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