Jeffrey Scott Badgley's Answers

I have two underwater mortgaged properties (primary)-244k and rental income)-100k), both w/2nd mortgages. Recently unemployed.

Your situation is a fairly common set of circumstances for our community in the current economy. From the information you provided, it seems that your primary issue is how to part with one or both properties without a deficiency obligation for the negative equity in the properties. Our approach is help clients avoid bankrutpcy by negotiating for a waiver of the deficiency in exchange for a deed in lieu, while also working on a short sale. This effort is often combined with an agressive...

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Am I liable for a lost mortgage/note on a foreclosed house?

Generally, when a foreclosure occurs, the borrow can be sued for the deficiency. The deficiency is the difference between the amount owed under the mortgage loan, and the fair market value of the house at the time of the foreclosure sale. The mortgage lender has five years to seek this deficiency judgment against you. The good news is that this liabiltiy can be discharged in bankruptcy. Be sure to tell your bankruptcy attorney about the foreclosure so that it can be listed as a debt on your...

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If a car is in two names and one person declares bankruptcy, can the other person lose the car?

Your husband's obligation on the loan will be discharged, and this will leave you as the sole debtor. The lenders rights are defined by the lending agreement. However, generally, as long as you keep paying on the car, they will not exercise any rights that they may have to repossess the car. This is even true of people who declare bankrutpcy and wish to retain ownership and possession of their cars. You should not have a problem, but you may consider contacting the lender know that you...

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My husband lost his job last year and we filed bk, keeping our house. Then he filed and were divorced a few months later.

When you filed bankruptcy with your ex-husband, the debt on the house was discharged. However, a chapter 7 bankruptcy has no effect on the mortgage lien that is on the property. For that reason, the bank is now foreclosing. The foreclosure is the legal procedure to remove legal title to the property from the owner. Until the foreclosure sale occurs, you and/or your ex-husband will continue to be the owners of the property (depending on who is on the deed that transferred ownership when you...

Single Member LLC and effect of the member filing Bankruptcy.

If the owner of a small business files chapter 7, they are in bankruptcy, but their business in not. The business is an entity separate from the individual who files bankruptcy. As another contributor above mentions, your membership interest in the LLC is an asset which must be listed on your bankruptcy schedules. The trustee, who represents the creditors in bankruptcy court, will be interested in this asset if your business has hard assets that can easily be liquidated. If the business...

I have a house in NY and FL. I reside in the home in FL. I cannot pay the mortgage. Can the FL mortgage company go after my home

Just going into foreclosure will not permit the lender on the Florida property to put a lien on your New York property. The lender will first have to obtain a deficiency judgment against you. This will happen if the value of your Florida home is less than the amount owed on the mortgage loan(s). Once the deficiency judgment is obtained by the Florida mortgage lender, they may be able to use it to place a lien on your New York property and force the sale of that property to satisfy the...

I purchased a home in FL as a co-borrower with my ex-husband. The foreclosure process has started. Can any previous debt affect

Your future husband will not be responsible for your debts. However, the foreclosure process may result in a liability to you in the form of a deficiency judgment if the property is worth less than the mortgage debt. Deficiency judgments can be significant, particularly in the current climate of depressed property values. What you and future husband should be concerned about is how you will resolve this issue. Many individuals have had to resort to filing bankruptcy to discharge their...

Bankruptcy...

When you file a chapter 7 bankruptcy, the debt on your mortgage loan is eliminated, but the mortgage lien remains on your property. Under the terms of most mortgages, the party holding the mortgage is entitled to foreclose if you file bankruptcy. However, most mortgage companies permit you to remain in the house as long as you are not in default and you continue to make the monthly mortgage payments. If you are unable to afford the monthly mortgage payments, even after your debts have been...

How do I stop a defficiency judgement granted in Florida which is being pursued in the UK. I

It is impossible to state whether the deficiency in your case is enforceable without reviewing all the facts of your case. However, deficiencies after foreclosure can be reduced to judgment under Florida law, and they may be collected upon if they are valid judgments. Also, judgments in the United States can be enforced in other countries pursuant to international treaties. An important issue for your situation is whether the court had personal jurisdiction over you in the foreclosure action....

Good Morning, I invested in Florida Real Estate at boom times. Then everything went down and I got 3 foreclosure properties in

Your situation is shared with many individuals who invested in real estate, but who now face foreclosure and deficiency judgments resulting from devalued real estate. In Florida, these liabilities, if they are reduced to judgment, have a life for as much as 20 years. The judgments create liens on any personal or real property that you own or acquire. The judgments can be filed in other states and create liens on any property you own in that state. You can always negotiate a settlement with...