After filing Chapter 13 and my mortgage was sold to a third party, can that third party collect the difference of the value from us?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
After filing Chapter 13 and my mortgage was sold to a third party, can that third party collect the difference of the value from us?
Chapter 13 filed in 2008 and surrendered property. Foreclosed several months later and was sold for less then we owed. Original Mortgage lender transfered loan to a third party company, who is now reporting that we have a $43,000 past due amount. When bankruptcy discharges, are we responsible for this $43,000?
Asked on April 30, 2012 under Bankruptcy Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The best way to have your question answered with respect to the Chapter 13 bankruptcy (a reorganization as opposed to a liquidation) is to consult with the presumed bankruptcy attorney that you had concerning the above proceeding who is experienced in real estate law.
If the loan that was foreclosed upon with respect to your home was the original loan (purchase money) then most likely under your state's laws on purchase money loans the lender is precluded from suing you for any deficiency on it. Likewise, in some states, there are laws precluding a deficiency judgment when a lender in a non-purchase money loan forecloses by way of a non-judicial foreclosure as opposed to a judicial foreclosure.
Given the need to know the type of loan that you had on the foreclosed property and how the foreclosure went as stated above, I suggest that you consult with a real estate attorney to determine whether or not the $43,000 claimed against you as a deficiency judgment is a valid claim or not.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.