I have a home in California that I can no longer afford. I purchased the home for $372,000 and the home will probably sell for $300,000 or less, so I may potentially end up owing the bank over $100,000 after the interests, closing costs, and other fees. This will be the first month that I will not make the payment so the foreclosure process has not yet started. What is the foreclosure process and how long does a foreclosure take? If I file for Bankruptcy before the home is foreclosure, can the lender still sue me if they sell the home at a lose? Can the bank obtain a judgment against me for the difference? If filing for a bankruptcy is a good option, when is the best time to file for a BK before the bank sues me? I do not know what to do and I am very worried. Please help!

Hello T:

All this worrying isn't going to change anything. Relax. It's only money.

When isn't an issue. You're going to owe the difference between what the house sells for at auction and your loan. If you can't pay it, file for BK THEN.

excon

I have a home in California that I can no longer afford. I purchased the home for $372,000 and the home will probably sell for $300,000 or less, so I may potentially end up owing the bank over $100,000 after the interests, closing costs, and other fees. This will be the first month that I will not make the payment so the foreclosure process has not yet started. What is the foreclosure process and how long does a foreclosure take? If I file for Bankruptcy before the home is foreclosure, can the lender still sue me if they sell the home at a lose? Can the bank obtain a judgment against me for the difference? If filing for a bankruptcy is a good option, when is the best time to file for a BK before the bank sues me? I do not know what to do and I am very worried. Please help!

I don't know your whole situation so I don't know if you want to save your home at all or you are at the point that you just are done with it. But you could possibly be able to file Chapter 13 BK and save your home from foreclosure. If you want to try to save your home then I'd suggest talking to a BK attorney. Also, again, not sure if this applies, but a lot of money was just set aside for HUD/FHA to help people refinance and help them keep their homes from foreclosure.

Chapter 13 - Bankruptcy Basics (http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html)

I can no longer maintain the home so I will have to let it go. If the bank foreclosures on the home, when is the last possible minute to file for BK? Can the banks block the BK? My concern is having a judgment against me. Can judgments garnish my future earnings? Can the bank only file a judgment once the home sells at an auction or by a Realtor because then they know how much is the difference?

Thank you for both your help!

I can no longer maintain the home so I will have to let it go. If the bank foreclosures on the home, when is the last possible minute to file for BK? Can the banks block the BK? My concern is having a judgment against me. Can judgments garnish my future earnings? Can the bank only file a judgment once the home sells at an auction or by a Realtor because then they know how much is the difference?

Thank you for both your help!

California Foreclosure Law (http://stopforeclosure.com/California_Foreclosure_Law.htm)
Understanding Foreclosure and Process, Gateway Title Company (http://www.gtc1.com/library/foreclosure.html)
California Foreclosure Laws - Foreclosure.com (http://www.foreclosure.com/statelaw_CA.html)

The last one talks about judgements. I don't know the answers to your other questions. Just some links there that I found online that may be of help.

Thank you very much!

Hello Tsmith,

How did this work out for you? I'm in a similar situation and looking for some advice. Any input is greatly apperciated!