| Re: Ditech/GMAC Mortgage 1st and 2nd Will they pursue a deficiency judgment?
Your obvious fear is that they will elect to foreclose on the first, and the result will be no bidders at the foreclosure sale resulting in the second loan (non-purchase money) being effectively turned into an unsecured debt. Then the holder of this unsecured debt could sue you on the debt and commence collection actions (garnishments, executions, etc.). You case shows the importance of contacting a real estate/bankruptcy lawyer early on. What you have done is to utilize "exempt assets" to pay debts and that may haunt you down the road. Please do not pass Go, do not collect $200. Seek a referral to a competent practitioner for effective advice. There is an art to planning a negotiations strategy, but it must begin earlier in the game where there are options.
Take care,
Daniel |