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I just caught up with my mortgage, it was in foreclosure mode. we were behind due to domestic issues. i had to pay the lawyer and couldn't afford the mortgage. the equity is next to nothing and the ex said she would sign off - but??! if i sell for less than we owe what kind of issues should i expect? i fully expect to file bankruptcy early in the new year due to huge tax debt and business failure about 350k i have had offers of about 250k for the house, the assessed value is 350k but the market value is 300k mortgage payout is 330k Will the deficiency be covered?



Alger & Associates Inc.



Jan 01, 2013



Hello and thanks for the quesstion. Any deficiency that might be incurred on a foreclosure of your residence will be included in your pending bankruptcy if the mortgage is an insured mortgage (ie usually a mortgage with a low downpayment. It is unkely that you will be able to list and sell your residence if the market value is below the outstanding mortgage since real estate commissions will not be covered from proceeds of sale. If you sell privately you will not be able to provide clear title as the mortgage will not be paid out. Your ex wife would also be liable for any deficiency on an insured mortgage despite the fact she may agree to be removed from title. If you have other debts that will require a bankruptcy filing, you should contact me as soon as possible to review your situation in detail including your pending mortgage deficiency issues. I can be reached at 403-909-9572 or at

Marie Kozlowski
T 403-296-3082


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