My kids are grown now, and got to grow up in a good house, in Travis County TX.
It appears that no good dead goes unpunished.
She is ruining my credit - no help for that.
We have a deed-of-trust to secure assumption.
So she is responsible for payments and has the equity. (owes 40K on 140K home)
So I am the gaurenteer, I guess, because I am still on the loan.
Foreclosure proceedings have started.
She filed chapter 13.
What does that mean to me??? Should I be concerned???
Related issues…
I read on-line Texas code section 51.003 Deficiency judgement and offsets with a Fair Market Value. Could this apply to home real estate?
I was looking for (lawyer) help to discharge deficiency or even bid on house, but it is difficult to do that from 1000 miles away.
Sounds like she has enough equity to protect the creditors including you. Under Chapter 13 she will not be forced to sell the house. She will devise a plan to repay the secured debt on the property she wants to keep and is allowed to return secured property she does not want without and defiencies. You are just a creditor also with the right to step in and cure the foreclosure except she filed bankruptcy which puts you off too. The best thing to do is to make sure you are included in all court mailings and are given notice of all hearings and get a copy of the plan and all documents she files. It will be a lot to look after but it will be worth it. If she can not keep up the payments in the plan you could petition the court to let you take the house over. She also has the right to convert to Chapter 7 but she can exempt the house as homestead and it would not be seized and sold by the trustee.
Once the BK is over one way or another she still has enough equity in the house where the loan company would be well satified if they had to foreclose on the mortgage. Anyway there are not a lot of lenders if any going after defiencies. They can not collect from the people already what they owe. A lot are also insured too but that would not stop the insurance company from filing but it just does not happen.
Hope my previous experience relaxes your stomach a little
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
Thank you for your reply Ted.
You mentioned:
"The best thing to do is to make sure you are included in all court mailings and are given notice of all hearings and get a copy of the plan and all documents she files. "
I am not sure how to go about this, especially from 1000 miles away.
Maybe there are some public records I can access on line?
She lost her job so she may not qualify for chapter 13. She may have a new job, but I do not trust her to tell the truth. I also can not expect her to do anything for me.
You mentioned:
“Once the BK is over one way or another she still has enough equity in the house where the loan company would be well satified if they had to foreclose on the mortgage.”
That is what I thought, but I have heard horror stories about the auction process. How would I know the conditions of the bid (minimum etc)?
I know attorneys can file answers to BK stuff online but not sure of records to the public. May have to join some corp. and pay to get online data. All you need to do is to get case # etc and file request to get notices. If she included you asa creditor you should get copies on all motions and hearings anyway.
Usually the mortgage company will bid what is owed plus there costs and then any investors will bid higher if they want to try and buy the property. Bidder needs to have cash or cashiers check usually day of sale. To know for sure what their bid will be you have to be there or have a friend or partner there for you on the first Tuesday of the month. You could still reinstate and file foreclosure against her or better maybe get her to deed to you if she can not make payments etc.
Again hope I helped some.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737