2 Homes foreclosed w/ around $90,000 2nd loan deficit for each in Ca should I file for bankruptcy protection?
Got laid off and cannot afford to pay mortgages. I have 1st home refinanced and cashed out $ 40,000 3 years ago when all was still good. Total balance left is $ 90,000 First home is only under my name which was rented out.
Then we bought a bigger house 2 yrs ago at the peak of housing and Our 2nd home was under my name and my wife this time which became our primary residence which was also foreclosed recently. Balance owed on 2nd mortgage is $ 86,000 was not paid during the auction (purchase loan not refinanced). Both 2nd mortage lenders are now asking for payment on the deficit. I have around $ 26,000 credit card debt also. My questions are;
1) Will any of the 2 2nd mortgage lender be able file judgement against me here in California for garnishment?
2) Considering the concerns above, would it be better to file for bankruptcy? We do not have any car loans as 2 cars is fully paid.
3) If bankruptcy is an option, should I file on my own only considering it is only I who’s on the 1st home 2nd loan which was refinanced and only I who is owing all the $ 26,000 credit card debt? Or is it better for us to BOTH file?
4) Will we be issud a 1099 for tax on those deficit? Are those not going to be forgiven?
5) If we don’t file for bankruptcy what is the advantage considering we have forclosed homes on our record? I noticed all our credit card limit are getting lower and lower every month bec. of the foreclosure.
I appreciate all the help I need in this difficult times. thank you!!