[JDR]

I am one of those facing foreclosure. Due to being unemployed, I cannot save the house, and I was unable to sell it. So now it is in foreclosure and scheduled to be sold July 7. We moved out of the house nearly 6 months ago, which is in GA, and into a rental house in Alabama. Now that the house is in foreclosure, I'm not sure what to expect. The foreclosure is from the primary lender, and I know the house won't sell for enough to pay both the primary and the secondary lenders. Does anyone know if a deficiency judgment can be issued against an unemployed person? If so, would a lender seriously do that, knowing they couldn't get a dime? It would seem to be a waste of time.And does anyone know, should it come down to this ... if I need to file Chapter 7 bankruptcy after the foreclosure (due to deficiency judgments), do I have to file it in Georgia or my current residence of Alabama? Thanks for any help.

[MKD]

I would say that you can file in the state that you live in now. When you file BK you have to list all of your debts and the house would be one of them. The bank will eventually come after you for the balance if they sell the house or have it auctioned off. You may think long and hard about filing BK or you may be faced with a large debt for the remaining balance of your house loan.