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EntoMan · 06-15-2009, 12:38 PM

I am one of those facing foreclosure. Due to being unemployed, I cannot save the house, and I was unable to sell it. So now it is in foreclosure and scheduled to be sold July 7.

We moved out of the house nearly 6 months ago, which is in GA, and into a rental house in Alabama. Now that the house is in foreclosure, I'm not sure what to expect. The foreclosure is from the primary lender, and I know the house won't sell for enough to pay both the primary and the secondary lenders (1st/2nd mortgage). Someone told me that the foreclosure extinguishes all liens, including subordinate ones. But I'm reading otherwise. Does anyone know if a deficiency judgment can be issued against an unemployed person, and would it be from the primary or secondary lender? If so, is a lender seriously likely to do that, knowing they couldn't get a dime? It would seem to be a waste of time.

And does anyone know, should it come down to this ... if I need to file Chapter 7 bankruptcy after the foreclosure (due to deficiency judgments), do I have to file it in Georgia or my current residence of Alabama?

Thanks for any help.

06-15-2009, 12:38 PM	#1 (permalink)
EntoMan Junior Member Join Date: Jun 2009 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Georgia Foreclosure Issue I am one of those facing foreclosure. Due to being unemployed, I cannot save the house, and I was unable to sell it. So now it is in foreclosure and scheduled to be sold July 7. We moved out of the house nearly 6 months ago, which is in GA, and into a rental house in Alabama. Now that the house is in foreclosure, I'm not sure what to expect. The foreclosure is from the primary lender, and I know the house won't sell for enough to pay both the primary and the secondary lenders (1st/2nd mortgage). Someone told me that the foreclosure extinguishes all liens, including subordinate ones. But I'm reading otherwise. Does anyone know if a deficiency judgment can be issued against an unemployed person, and would it be from the primary or secondary lender? If so, is a lender seriously likely to do that, knowing they couldn't get a dime? It would seem to be a waste of time. And does anyone know, should it come down to this ... if I need to file Chapter 7 bankruptcy after the foreclosure (due to deficiency judgments), do I have to file it in Georgia or my current residence of Alabama? Thanks for any help.