Our house was auctioned off and there was enough to cover the first mortgage, but we have a second mortgage on the house and the company is threatening us. They say we have to pay the 38,000. We also owe a lot in credit card debt. Should we try bankruptcy?

It is a option, many factors depending on income and debt to income ratio and more, So you need to sit down with a bankruptcy attoreny for them to review your case.

*** also ask if the first visit is free or not, it used to be there all were, in Atlanta now my last check about 1/3 to 1/2 were asking for a small payment for the first visit ( less than 100 dollars)

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Originally Posted by musician1130

Our house was auctioned off and there was enough to cover the first mortgage, but we have a second mortgage on the house and the company is threatening us. They say we have to pay the 38,000. We also owe a lot in credit card debt. Should we try bankruptcy?

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It is an option; after all, $38k is a lot of debt for nothing. Consumers file either Chapter 7 or 13; here is a link for additional information: Bankruptcy Chapter 7 Personal Consumer Creditors File and Bankruptcy Chapter 13 Debt Payment Retain Assets

How did the house get auctioned off? I ask because the second lean holder would have had to agree to releasing the deed for this to happen. Both loans are secured against the house. Sounds a bit strange.

In any case, you do need to talk with a lawyer, it's possible to do this on your own, but you need answers now if you have the lender breathing down your neck. If you do decide to file bankruptcy, when your lender calls you again you can tell them that you're in the process of preparing your bankruptcy petition with a lawyer, this should make them want to back off.

Also make sure you read up on chapter 7 and chapter 13, your lawyer would be best to tell you which one suits you best after running a means test. Also remember that consultations are free so don't pay for your consultation if they want to charge you something, go somewhere else.

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Originally Posted by musician1130

Our house was auctioned off and there was enough to cover the first mortgage, but we have a second mortgage on the house and the company is threatening us. They say we have to pay the 38,000. We also owe a lot in credit card debt. Should we try bankruptcy?

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The lender was the same for both loans. We refinanced and they did it with 2 loans.

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Originally Posted by chassm

How did the house get auctioned off? I ask because the second lean holder would have had to agree to releasing the deed for this to happen. Both loans are secured against the house. Sounds a bit strange.
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Actually, it is my understanding that when the first sells, all other liens are removed and the purchaser takes a clear title. The second holds only its promissory note, unless there is additional collateral (or cosigner).